I told you so……


Stop what you are doing right now, and go visit my March 6 column.

I spelled out quite clearly in that column exactly what was about to transpire in the market, explaining there was a sudden surge of young investors ready to pounce on the lows in the market at a time when the fed was about to put an influx of cash to work — while those who ignored my pleas over the past year to pull their money out during the volatile market, and wait for a golden opportunity to re-enter — are now licking their wounds, shaking their heads and taking their money out during the lows, because they can’t take it anymore.

If you heeded my suggestion on March 6 that it was time to start putting your due diligence to work and began dipping your toes back into the water — you’re welcome — as most names that have been on my due diligence list saw a nice pop over the past couple of weeks.

On the surface, all signs look good today on Wall Street.

The markets are all up — including the Nasdaq, and I like the way the volatility index has been treading more smoothly lately.

it was a great sign to see stocks trading higher yesterday, without any help from the financials.

But a warning to any newbies:

According to CNBC, they have confirmed what I’ve been suggesting for a while — there are a lot of shorts in the current market — and that’s not good news for anyone who hasn’t done any serious due diligence, and are planning to just pick a name and jump on the gravy train.

It means that as quickly as a bunch of shorts all jump on board to cover their positions, they can just as quickly all unload together.

This means a $10 stock that suddenly enjoyed a sudden spike to $15 as the result of what appeared on the surface to be a sudden bull market swing — but was really a bunch of shorts covering their tails — could quickly turn into a very bearish market for any novice chasing their way into that position if the shorts suddenly do what shorts are prone to do — dump their position — causing the stock to suddenly plummet.

So what’s a newbie to do?

If you’re in a stock because you’ve done some rock-solid due diligence on it, and you are in it for the longhaul, then re-read my column from yesterday and keep cost leveraging your way into the position. If it pulls back, buy more at a low price and rejoice.

However, it’s gut-check time for those who are just riding the coattails of the market and haven’t really done any serious due diligence, as you’re just playing a sucker’s game of gambling — so go outside, wet your finger, stick it in the air and see which way the wind is blowing — as I can’t help anyone who simply doesn’t do the homework.

New to my due diligence list is Ashland, Inc.

The usual disclaimer: Don’t base any of your investment decisions on anything you read here; do your own due diligence, or at least enough research to pick the right professional to do it for you.


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