Apology

For the past three months Paterson has been busy working with existing and new clients to avoid the disaster in the credit markets.

My apologies to students, casual readers, and potential clients for the absence of this weblog.

Paterson is back, explaining the situation and suggesting tactical and strategic plans for dealing with the extended downturn.

Stock Market at Support

Investors will be watching the stock market closely for the next few weeks at prices approach support levels seen twice before in the last 6 months.

NYSE Composite


S&P 500


Russell 2000


Technical traders will be buying the Index here, and selling if the market trades below these levels.

SUMMARY
The usual rule is to buy the market when the situation looks bleakest.

That certainly is the case here.

Correction is Over

As the chart of the NYSE Composite shows, the correction is over.



Prices make a double bottom
Trade up through resistance
Fed warns against inflation
Fed won't lower short rates any time soon
Stock prices retreat for one day
Prices make new highs for the move.

This correction is over.

Time to get back in the market and put that new money to work.