Monday Monday

I am writing this post Sunday night after a long day of classroom training. Most Asian markets are up a little as I write this.

I don't know what to write so I will answer an indepth comment/question from Michael that you can read here.

He asks about my 200 DMA indicator. First I am referring to the S+P 500 when I say market. Also, if we get close I will focus more on the exponential moving average as opposed to the simple moving average, just a matter of personal preference.

It is hard to say the exact manner with which I will become defensive in client portfolios because it depends what everything looks like. I expect I will sell some stock, I will add to positions of inverse market funds, add some short dated preferred stocks and maybe increase exposure to gold stocks and certain foreign stocks. I might do some or all of those but that captures my thoughts right now.

As for Michael's comments about GM, and Jaloti's too for that matter, I agree with what they say about poor execution, missing market trends, the health issues and the pension issues. I admit that, because the business is so bad I just know to stay away, I am not an expert here. With that said the GM situation is not new, huge American company has huge problems. More often than not the company survives (I am assuming no fraud). Survival may not mean the stock goes up but probably means the debt comes out ok. In case I wasn't clear with my comment the other day about GM's debt; it is not my type of trade and I won't be buying.