Lets hope for a bit more upward action this week. Not much chance, I fear, as the big traders seem to be thinking of other things. Tennis and strawberries and stuff.
The big problem remains uncertainty. Nobody yet dare prophesy anything in Crazyland. And where fear rules, either the Footsie (news) falls or it stagnates.

Where is this big recovery a lot of people expect? If you look at the graphs of nearly every big UK company and Ive been doing a fair bit of graph study lately youll see that most shares took a heck of a dip in October. And that nearly all the shares are doing far better now, than the Autumn shock.

But the rise is nowhere as steep as the September and October falls. This is to be expected. Bear runs are far faster and steeper than bull markets. It seems were all very eager to sell fast, when things start to go wrong. And yet were far slower to accept that market conditions are about to turn for the better.

Doesnt say much for the human spirit. We desert a sinking ship like rats. Yet were slow to jump onto bandwagons, in case the wheels fall off. But then again, for the individual, its better to be cautious. And abandoning a losing share is cautious, just as holding back from buying a share is also being careful.

It is better to sell a losing share than to hang on in the hope that it will recover. Sometimes it will, but, mostly, a share which loses value over a long period is probably going to keep on in the same miserable vein.

I think what Im trying to say is that a falling Footsie is indeed depressing. But if the reason it falls is that shares are being sold, and conditions show that selling is sensible, then its better to feel sad now, than to lose serious money later on by being too optimistic. Rock on.