To OTC Journal Members: 
 

What CNBC Isn't Telling You

This weeks's market melt down will go down as #12 for me since I began trading stocks in 1987. I was sitting at what was known as a "Quotron" machine back then, watching the market melt down 500 points in October of 1987. Of course, that was a 25% drop- not the piddly little 5% drop we had yesterday.

The S&P 500 has dropped over 12% in the last 10 trading days, so this goes down as a major rout of the markets.

Here's what the media is not telling you that's worth noting. First of all, over 70% of reporting companies beat analysts' expectations on Q2 numbers. I know there's a big difference between Wall Street/Corporate America, and Main street America, but stocks should have some reflection of earnings.

The geopolitical reality that is really roiling the markets is what's going on in Europe. We we had our financial melt down in 2008, and our government stepped up and recapitalized the banking system. Treasury Secretary Tim Geithner made all those banks go out and raise gobs of money outside of the bailout.

Countries in Europe look like they could literally go bankrupt, and the individual countries and the EU are not aggressively dealing with the problem.

Are you're wondering what precipitated this huge sell off? It was an Italian Treasury auction. There was one scheduled for this week, and it was cancelled. This sent a message to the markets there's no demand for even Italy's sovereign debt, and started the cascade effect.

Every one of these market meltdowns is different as to the cause, but the same as to outcome. They all end up being buying opportunities. It's just a question of how long before the markets come back.

This event convinces me the last quarter of 2011 will be great for equities. I'm just not sure what happens between now and October.
 

Bounce Back Ideas

If you interested in absurdly oversold ideas that might bounce easily, here's my 2 favorites:

• Bering Exploration (BERX): This one was really looking like it wanted to break out, and it broke down big time. The stock has been absolutely clobbered this week, dropping from $.62 to a low of $.29 today. This stock could easily bounce in the near term.
• Vringo (AMEX: VRNG): VRNG made it back to $2.60 just 4 trading days ago on the highest volume in their history. At about $1.67, this stock looks like it could be good for a bounce.
   

Feeding the Colony on Mars

I was planning on doing another of my Sunday ideas this week, and I had one lined up. Believe it or not, I've been looking at a company that has a solution for how we're going to get fresh vegetables when we colonize Mars.

Sound futuristic? I know it's a little ridiculous. However, this company is obviously selling lots of their product in the US today, and business is really starting to take off.

It probably won't come out Sunday as I want to allow sometime for sanity to return, but look for the Mars Colonization solution soon.

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