Dead Cat Bounce?

The market had a monumental upswing today. It had several key factors mostly though oil was back up and rising sharply the past two days. Some good earning number, possible Greece debt deal, and okay economic data all contributed. This follows of course a couple of weeks of bad news and falling stock prices. So which way is the market really going to go? Is this just a dead cat bounce where a major fall has started hit the first floor, bounces a little and then just goes right back down and even farther. I do not think it is a dead cat bounce. It might go down some more but in the end this year I think it will be up and reach great heights. We should always keep an eye on the market and be careful about the direction it is headed. 

Let's consider that it is not a dead cat bounce then the people who bought at this level will have larger gains than those who waited until someone else told them it was time to go into the market. If it is a dead cat bounce than the people who buy now will lose money at first. They can always recover it but it is difficult to recover losses. So it is always as previously stated a risk to buy into the market but one that consistently pays off with a well diversified stock picking. 

So I'm going to say that this current uptick is not a fake bounce. It is a strong uptrend that will continue. 

Update on the WML

Sorry folks for never completing the 30 stocks in the WML index but I have been somewhat busy with a new job and just other things. Here though is an update on how well the index has done over the past 5 months.

If you invested in the five stocks I recommended and added to your portfolio you would be up around an average of 9.48% since the start if you had the same amount in each stock. While it might seem that I only had four stocks I'm going to count GoPro as one because I would have put it in the index earlier but it wasn't yet trading.

Hopefully I can add the other 25 or so stocks soon and of course share my reasoning of removing or adding stocks. I don't think I'll remove one of the five just yet.

Happy trading

United Parcel Service: The Fourth Pick in the WML

UPS is one of the two leading private parcel companies. The other is Fedex, the other major competition comes from the United States Post Office. As the consumer purchases more and more online, these companies will provide most of the shipping of goods. Trucks are still important for the majority of businesses but a truck isn't going to stop in the front driveway but a smaller UPS truck could certainly stop and unload the daily goods you bought. The online retailers enjoy sending you the goods from a central warehouse instead of hiring employees in the store. The cost of shipping is also not that expensive to the consumer or the corporation as seen that many companies provide free shipping over a certain order price. UPS is very efficient at getting shipments from one place to another quickly getting most shipments delivered in just a few days. Their logistics formula has to be good to have such a well run machine. The company has invested heavily in getting goods from one location to another. This is justified because people will need to move items around and UPS offers good service for a reasonable price. They also provide easy shipments from business to business and that is their true bread and butter.

The stock has returned nicely to shareholders with dividends and with a nice growth in price over the past five years. They have increased revenue and able to maintain being top dog in the industry. UPS's CEO D. Scott Davis has spent a long time with UPS and has run the company through the worst of the most recent recession and made the company stronger. I think with careful research that UPS has positioned itself strongly in their sector. The company will be able to maintain the strong position making this company a good investment choice for the investor. It will be a very important business for everyone and will have more growth in revenues to come.

Disclosure: I do not own UPS or plan on purchasing a position in UPS