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hey yo! certified financial planner here... and just took level one of the chartered market technicians exam last monday...
i'm always a big fan of paying off debt, but make sure that you have at LEAST 3-6 months of expenses covered in a checking or savings account. i generally ask my clients who are in cyclical industries (aerospace, agricultural) to keep 6mos+ in cash. have seen so many rush to pay off a debt because they were tired of making the monthly payment only to have a cash crunch (one lost his house for this in 2010).
as far as the market, i make no recommendations on what to invest in, but i'll give my two cents on the current conditions.
looks like a short term rally that may be coming to a short breather. the longer-term trend upward is still intact, but there is a lot of short term political noise that will move the market from day to day. up volume today was 63% today (67.1% average for the last five trading days) although the s&p 500 was off a little bit - suggesting that there is support there for current prices.
on the other hand - watching the candlesticks one could see a bearish engulfing pattern with today's price action. this is generally an accurate pattern that would suggest a pullback, but the uptrend is so short that i wouldn't rely on it for a trading signal. I prefer to watch volume, as it will often precede price, and recent volume is supporting the bulls right now.
a few things to keep in mind... never trade within 30 minutes of the open and close...amateurs open the market and trade it early, the professionals drive the mid-day and afternoon action... penny stocks are pennies for a reason... never trade against the trend... don't hire a broker or "financial advisor" to put your money into a pre-packaged portfolio... and lastly and VERY IMPORTANT - ask your advisor what their exit strategy is... 99% don't have one - they just want you to stay invested as it greases their (and their firm's) wheels.
for those that want to learn more about when to get in and out of the market, i'd suggest reading up (or watching youtube videos) on the following as they have been VERY kind to me....
arms index (aka trin)
rsi (calculates strength of an issue)
elliott wave theory (impulse, motive, and corrective waves)
fibonacci retracements and extensions (you'd be amazed how and why stocks reverse course where they do)
moving average convergence/divergence (buy and sell signals - always use with another technical indicator for confirmation)
mclelland oscillator (market breadth indicator)
stoch (buy and sell signals - always use with another technical indicator for confirmation)
average true range (for trade timing and placement of stops)
any questions that anyone has - send me a pm.
**** THE STOCK MARKET IS A BIG SANDBOX FULL OF BULLIES THAT WOULD LOVE FOR YOU TO BUY HIGH AND SELL TO THEM WHEN YOUR EMOTIONS GET THE BEST OF YOU ****
i'm always a big fan of paying off debt, but make sure that you have at LEAST 3-6 months of expenses covered in a checking or savings account. i generally ask my clients who are in cyclical industries (aerospace, agricultural) to keep 6mos+ in cash. have seen so many rush to pay off a debt because they were tired of making the monthly payment only to have a cash crunch (one lost his house for this in 2010).
as far as the market, i make no recommendations on what to invest in, but i'll give my two cents on the current conditions.
looks like a short term rally that may be coming to a short breather. the longer-term trend upward is still intact, but there is a lot of short term political noise that will move the market from day to day. up volume today was 63% today (67.1% average for the last five trading days) although the s&p 500 was off a little bit - suggesting that there is support there for current prices.
on the other hand - watching the candlesticks one could see a bearish engulfing pattern with today's price action. this is generally an accurate pattern that would suggest a pullback, but the uptrend is so short that i wouldn't rely on it for a trading signal. I prefer to watch volume, as it will often precede price, and recent volume is supporting the bulls right now.
a few things to keep in mind... never trade within 30 minutes of the open and close...amateurs open the market and trade it early, the professionals drive the mid-day and afternoon action... penny stocks are pennies for a reason... never trade against the trend... don't hire a broker or "financial advisor" to put your money into a pre-packaged portfolio... and lastly and VERY IMPORTANT - ask your advisor what their exit strategy is... 99% don't have one - they just want you to stay invested as it greases their (and their firm's) wheels.
for those that want to learn more about when to get in and out of the market, i'd suggest reading up (or watching youtube videos) on the following as they have been VERY kind to me....
arms index (aka trin)
rsi (calculates strength of an issue)
elliott wave theory (impulse, motive, and corrective waves)
fibonacci retracements and extensions (you'd be amazed how and why stocks reverse course where they do)
moving average convergence/divergence (buy and sell signals - always use with another technical indicator for confirmation)
mclelland oscillator (market breadth indicator)
stoch (buy and sell signals - always use with another technical indicator for confirmation)
average true range (for trade timing and placement of stops)
any questions that anyone has - send me a pm.
**** THE STOCK MARKET IS A BIG SANDBOX FULL OF BULLIES THAT WOULD LOVE FOR YOU TO BUY HIGH AND SELL TO THEM WHEN YOUR EMOTIONS GET THE BEST OF YOU ****
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