MORE ON THE ECONOMY

Hello my friends,
It has been quite a time for the economy and the stock market. Most of you know of my passion for all things financial. I love business, both big and small. I have plenty of opportunities to share ideas here. There is a ready audience.
I've written recently about the stock market and the so-called Debt Ceiling Crisis, and then the S & P credit downgrade over the weekend. I nailed the market reaction and thought it best to sit out the uncertainty, unless you wanted to play puts, betting that the market would go down. Well, down it went. The Dow is down 2,000 points in the last month. It was at 12,800 and hit 10,700 yesterday. It has a lot of work to do to climb back up, but it will---inspire of the Liberals in Washington.
I thought I'd take a day off, it being a burden to be right so often. However I told others here (just ask them---Slice, Crosshairs, Speedy and Lefty) that I thought the market would settle in as it found a good bottom, a good support level.
So for today, Tuesday, and for the next several days I think the market will be very erratic. It will have 100 and 200 point swings. It will be in positive territory and then negative and then back to positive again. The market always does this as it tests new highs and lows.
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Second Note: This sell-off presents many bargain buying opportunities. Look at BIDU, even GOOG. I have a friend from Fairbanks who just bought RenRen (RENN), the new Facebook of China, for $7.25. He was willing to buy it last week for $10 to $11. With the uncertainty, he decided to wait. RENN is doing earnings on Thursday. High or low, the most important thing is how many new users, new subscribers they have. Many companies like this are in a growth mode.
Now, He will wait and then on a rise, sell the $9 or $10 covered call. One great strategy is to sell the last run-up. Often when a stock is coming up on earnings, the rumors abound, but then on earnings, the stock goes down, again, even if the numbers are good. It not so much about the actual numbers, but about the commentary on the numbers.
   "A STOCK PRICE TODAY IS BASED ON THE ANTICIPATION OF FUTURE EARNINGS."
That's all for now. We'll keep you posted. Keep those cards and letters (posts and emails) coming. Thanks.
Wade