Friday's Market

If you haven't turned off the computer these past, I think, 7 Fridays then you saw some great rallies into the close on Friday.  So, first, the trend is your friend.  But even the Celtics and the Lakers lose occassionally.  

2) The market first sold off on investment institution bankruptcies or fear thereof, the market then sold off as it was questionable whether the government was indeed going to finance a bailout, and then the market sold off on the question whether GM, Chrysler, of Ford was going to file for bankruptcy before the government helps stem off massive blue collar layoffs.  On all these accounts, the markets went higher after these fears.  Government data does not move markets or at least I don't believe in such things, but almost tangible fear does.

3) Obama's swearing in is coming up and the idea of catastrophe beforehand is absurd (though Reagan had the hostages to deal with).  Markets rise on a wall of worry.  

4) Banks didn't participate in the past week's rally and can be 1) foreboding omen 2) just the big players hedging their bets (or in plain speak-waiting), until whatever signal they are looking for gives "the all clear" 3) more action in the commodity stocks and thereby less money going to  financial institutions 4) or traders shaking out the weak hands before the sector starts to rally.

So if the market does sell off into the close it may be an opportunity like Wednesday was for a healthy rally Monday or Tuesday of next week.  But must look for companies, as Jim Rogers keeps repeating, with fundamentals that haven't been impaired and at what price are you going to pay for it.  And they are usually "cheap" on down days.

Look at Gamestop.  I bought on Tuesday on Best Buys rally, then saw it sell of 1.50 on Thursday, but preceded to see it rip 3 bucks on Thursday.  But then again, JP Morgan sold off.  So in the end, even.  But that's better than losing and as one makes good decisions it should reflect in one's performance as well.