My headband is too tight again this morning. It’s like having a headache is so much cuter when you have a bow in your hair.
As I try to figure out what exactly is happening in the market and the bailout money, I can feel my head pounding a little more. The government is now buying $250 million worth of shares in the nations leading banks in an effort to unclog credit markets. The stock market continues to fluctuate this morning after slightly rebounding yesterday and remaining above 9000 today. But don’t call last week a bottom yet, a lot of analysts warn, we’re not out of the woods by any means.
Nice to see that sentiment for the major indices has remained relatively strong this morning and that yesterday was not some temporary spike. PredictWallStreet reports that sentiment for the DJIA, NASDAQ and SP500 is either bullish or extremely bullish. Clicking on the Community Leaders link at the top I can check community sentiment for the overall market and it appears that about 80% of predictors predicted the markets will go up today. It seems as if the government aid and bailout promises are indeed restoring some faith to consumers and investors.
Now, I want to mention this earlier in my post than at the bottom because who knows how many of you read till the end. Every week PredictWallStreet holds a Prediction Contest giving away $300.00, $100.00 and $25.00 and all you even if have to do to be eligible is make an account, join the contest, and predict. Seriously, every week. For some of you, $300.00 may be more than you make in the market in a week anyway 
I know for me, as a newbie, that’s the case anyway. The contest is great because not only do you have the chance to win some effortless money, but its practice! If you’re not exactly ready to trade in the real market just yet, like me, you can test your ideas by making predictions on PredictWallStreet to see if your predictions would of been accurate. Its a great way to test trading ideas and, simultaneously you are entered to win the contest. The main idea of the contest is to see how much money the stocks you predicted on would of made in a simulated trading. So if you’re already predicting, great! If not, join the site and contest and try your skills (or luck) out.
So far this morning I’ve made a few predictions. This is my page. I’m trying out a new angle of being consistent in my predictions and have thus made all UP predictions for AAPL, BAC, MER, MS, and MTU. I’ve predicted up for most of the banks on news of the $250 million buyout of shares for the leading banks. So far, only MER and MS are up but it is the middle of the day and trading always seems to get a little crazy at this time. I’m going to try to not second guess myself and leave my predictions till the end of the day. I know most of my prediction are based on general news and public information rather than a concrete analysis, but give me a break. I’m only on chapter 6 in my investment class and sometimes that buzz can be just as helpful.
I haven’t looked at Research in Motion (RIMM) in awhile. On my account homepage it says I am most accurate at predicting that stock. Research in Motion recently released there new Blackberry Storm. Have you seen the commercial? It’s pretty cute and intriguing. The Storm isn’t exactly perfect, nor does it blow the iPhone out of the water, but it sure does enhance RIMM’s position by providing improved features and user experience. From a marketing perspective, the only problem I see with RIMM is that they produce a new phone so often that it becomes hard for the trendy consumer to stay just that: trendy. By the time you have bought the latest phone, a newer version is on its way. I think some of the success of the iPhone has come from the fact that it has no direct competitors produced from Apple. When you buy one, you have the one and only iPhone. It’s often hard for me to discern what Blackberry I think is more advantageous. I like the Storm, I like the Pearl, I like Curve. I like them all! But the brand message gets confused, a huge no no in marketing consistency. It’s likely the Blackberry’s target consumer is someone who is savvy, trendy and professional- someone on top of there work.. and the latest phone. It’s hard to stay at the top of that game when Research in Motion keeps ousting you. One could argue that RIMM is simply providing a variety for it consumers which is equally as important. But from a competitive standpoint, RIMM is not only competing against the iPhone, they’re now competing against themselves too. That’s my two cents anyway. As for fundamentals of the company, I know little to nothing but based on my simple customer perspective analysis, I’m predicting down for RIMM today. Looks like 88% of predictors disagree with me and sentiment is relativley strong. Guess we’ll have to wait and see.
I’m shooting another video blog today. If you missed the last one head over to PredictWallstreet to watch it. Send in your own videos of how you use the widget and you could be featured on the site too!
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