I don't know how readers remember the gas crunch in the early 1970s. I remember a few glimmers from that era, when gas was rationed and when my brother used the lawnmower to cut a huge question mark in the back yard before he ran out of gas. The question was meant to be private, something for my brother and my brother alone to relish, but that mark remained for two days before we could purchase more gas to mow the rest of the lawn. Years later we all laugh about that stunt, even my father, who was very hot under the collar about the incident at the time. My brother, however, still questions authority.

After watching CNBC over the past week, I wondered if any of the broadcasters had ever mowed a question mark into their parents' back yard. On one hand, advisors tell viewers to buy, buy, buy, or the American economy will be in trouble. Other advisors encourage viewers to save, save, save, so that viewers can weather any shocks to the economy. While some people might stay up at night steeped in worry about which advisors are correct, others might question authorities instead and study indicators to help make future decisions.

One of the most primary and imperative indicators to check are stock market charts. As of the first weekend in October, stocks had ended with gains over the previous week, month, and quarter, despite all the hard news about higher gas and oil prices, interest rates, and larger and more frequent hurricanes. An intense look at that statement might help investors digest its contents?

1. The charts don't lie. But notice that I said that the stocks had gained within the past quarter. October marks the beginning of a new quarter, and while news from the past quarter was encouraging, what about the upcoming quarter? News at the beginning of this quarter is equally encouraging, especially in computer chips, construction, and manufacturing.
   
   
2. Notice the "construction and manufacturing" in the previous paragraph and the note about hurricanes mentioned earlier. I won't elaborate, because it doesn't take a rocket scientist to figure that equation. Many buildings were destroyed during Katrina and Rita, and residents and business owners across the Texas, Louisiana, Mississippi, and Alabama Gulf Coast will rebuild.
   
   
3. But, how will the Gulf Coast region rebuild? If you invest in companies in any one of those four states, you might check with the company to monitor its future plans. On the whole, most companies which began in one of those four states will remain in one of those four states, because they're in tune with local infrastructures, and rumors in the wings indicate that federal and state incentives will keep those businesses planted?maybe planted further from the actual coastal region, but planted nonetheless.
   
   
4. Rumors? Arghhh?back to questioning authority. Any tales you hear about businesses in those areas or in any other area can be squelched or confirmed with an email sent directly to the company. If you get the run-around, then expect a change, because answers that aren't straight-forward usually means something's in the works and a decision is in the offing. Stay alert in this case, and make a decision about your investment after the decision is made. In the meantime, watch market indicators, like stock rises or falls and trading volume.
   
   
5. Remember the mantra, "Buy low, sell high"? If a strong market exists during a time filled with so many warnings scares you, trust your instincts and knowledge about the market to date. Go back to the charts and (repeating #4) watch stocks for volatility in price and/or trading volume. I trust the latter more than the former, because low or high activity in any given stock means that interest has been lost or gained respectively. Low volume means that the stock has slowed, and higher volume might mean more volatility.
   
   
6. Think cycles. I mean think quarterly cycles and seasonal cycles, not washing machine cycles. Think about how these cycles affect your investment choices. Think about the warnings that come from the Weather Channel, rather than ones that come from CNBC (although it doesn't hurt to hear them all, unless you already have an ulcer). While many of us breathe a little easier because the end of hurricane season is a mere six weeks away, another year - possibly a decade - of unusually harsh storms are predicted. I've learned a lot from this hurricane season, like which industries are located along the Gulf Coast and how their injuries affect the local to global economies. If you haven't learned anything, you have about nine more months to catch up before the next season begins. P.S. Hurricanes affect the east and west coasts in this country as well as the Gulf. Learn more about these storms and their behaviors (and more) at NOAA (National Oceanic and Atmospheric Administration).
   
   
7. Don't tell the story about my brother's stunt to your kids. If you don't have a yard where they can replicate his actions, you might find a question mark mowed into the back of their hair. Please trust me on that one.

If you are inclined to buy, buy, buy to help the American economy, then more power to you. If you want to save, save, save, to cushion yourself from future economic shocks, then more power to you as well. Frankly, I'm in the latter crowd, but I don't stuff my money under the mattress. Diversity counts, with some liquid investments that can be tapped for emergencies and with long-term investments that I don't dare touch. But, what do I know, right? If you're smart, then you might question my authority and do what you know is right for you.

Until Next Week,
Linda Goin