Weekend Reads: Stock Market Stuck in a Trading Range Edition

Hello there! If you are new here, you might want to subscribe to the RSS feed for updates on this topic.

I received a few questions this week from folks asking if they should continue to buy stocks or wait for another pullback after the recent run up in the S&P 500. For those out of the know, we’re up 35% or so from the March lows.

The simple answer is still: I don’t know!

Lots of variables go into answering this coin flip of a question, but if you’re relatively young and subscribe to the Jack Bogle theory of dollar cost averaging into the market with low cost index funds, I really don’t see how you can go wrong as a long term investor.

However, if you’re more of the river boat gambler type and you want to wait out a few bargains, I will say the S&P 500 is probably stuck in a trading range between the 940s and the March 6th intraday low of 666. I’m a follower of technical analysis, and I think there is a better than average chance that we will retest those lows in the high 600s.

More on the reason why I think we will retest the lows in tomorrow’s post! Here’s a hint… S&P Earnings suck!

Of course, I could be entirely wrong. Market timers do this dangerous dance at their own peril so if you want to play with fire, make sure you have the time and zeal to checkup on the market multiple times per day.

Favorite Reads from the Personal Finance Blogosphere

Blogger @MattJabs (from Debt Free Adventure) authored one of the best posts I’ve read for 2009 with Is Personal Responsibility Dead? I’ve tried to write something similar for months but couldn’t make it work. A definite must read!

Everyday Finance brings up an interesting Intellectual Property vs. Human Rights issue when biotech companies patent human cancer genes. The ethics are definitely an issue when you consider that a for profit corporation holds the intellectual property rights to genetic information — stuff we all get for free from our parents — that kills thousands of a women each year.

Moolanomy has gathered a mega list of 1,001 Ways to Save Money. Definitely worth a speed read and note taking if you’re looking for ways to reduce your outgoing cashflow.

My Two Dollars lists 17 Free Internet Radio Stations. I haven’t bought a CD since 1999, so instead of throwing your money away on CDs or iTunes, bookmark this one for later use.

That One Caveman brings up a valuable reminder that Good Personal Finance Takes Practice. Being a devout saver or a savvy consumer doesn’t just happen overnight. It takes work and continual practice to stay sharp.