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Thursday, December 18, 2014

The Bipolar Bull

So have you heard? The sky is falling, stock market is crashing, oil is gone, Micheal Jackson came back from the dead, etc.

In other words, people are running for the exits because they think the party is over. While I'm sure the Bull is not running forever, I think he still has some steam left in him. If it wasn't for oil, stocks wouldn't be taking the hits they are. But that's been 2014 for you, external factors have constantly effected this market, almost making it bipolar in a sense.

This whole year the market has gone up, but truth be told it has gone up and although briefly, it has went down. A good bull market is a more consistent ride to the top, this year has been anything but. If your rich, you've survived. For the little guy, it's hard to see a 20,000 dollar investment go up and down constantly which is why a lot have pulled out.

If oil doesn't crash and stabilizes at this price range couple with a strong earnings in Q1, the market will pop once again. Now if oil slides more and companies report smaller profits with a smaller outlook going forward, this bull may indeed be running out of steam. But we'll see. 

Oil has been fighting to stabilize itself at this price, and this week its made a strong effort of doing so. As a result, stocks are going back up again. I would keep my eye on bullish plays folks. I'll do my research and see what I can pull up for suggestions.

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