Thursday, March 5, 2009

Holding Steady in a Crazy Market

Not only did the DOW break all of its major support levels, but it broke hard, sending us into the lowest market levels in 12 years. Some say 7000 is a key number. But according to one analyst, true support sits around 5500-5600. This is fairly uncharted waters for most analysts and really noone really knows.

Most blue chips are down at least 30-40%, and small caps are not fairing as well. Obviously this includes IdeaEdge. However there is some good news in all this turmoil, at least for us.

The good news:
Its nice to see that IDAE has maintained its support level at above .40 for the last few weeks. Since the float has increased to over 6MM from 3.9MM, I am surprised to see so many people continuing to hold. Volume has dropped off, but this is a good thing in a turbulent market.

The best part is many funds, institutions and investors have gone into cash and are waiting for the right time and stock to jump into. As Socialwise/Ideaedge picks up steam, it may find a good number of investors looking to recoup their losses.

I still expect IDAE to run hard once it begins moving. Who knows, maybe even past its previous highs. In this market, that would be nice.

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