Marc Courtenay

What Really Moves the Stock Markets (And How to Take Advantage)

Your comments add the extra dimension to every article written. Your points are well taken. Remember though, the "Big Smart Money" doesn't usually invest any time with stocks that don't have a big enough market cap, so if you're following their lead you want to stay with nothing smaller than a mid-cap stock. That is why lately I've been nibbling on companies like NYX, AA, and CHK.


On Aug 11 11:05 AM tc1 wrote:

> Thank you for a provocative and insightful article, Marc.
>
> I think that, in addition to following the major short- to medium-term
> trends set by Big Smart Money (the "powers that be" to whom you allude
> in your article), there's a lot to be said for 1) taking a "risk-expendable"
> portion of one's portfolio and finding promising small- and micro-cap
> companies in which to invest for growth and value, as well as 2)
> deploying a "contrarian" approach and picking up shares in good companies
> that get temporarily hammered by a broad sector sell-off, a somewhat
> poor earnings report, or a dilutive stock offering. I've seen too
> many companies hammered down 10% or 40% in a day or over a period
> of days, who then zoom back up within a few days or weeks or even
> within just one trading session. If you're willing to put in a fairly
> substantial amount of $$s, such short term 10-40% gains can add up
> quite nicely over time.
>
> And all of this profitability can happen "outside the trend du jour"
> being set by Big Smart Money.