Uneventful Day

Added 3 new positions today, 1/4 sized for now.  MRK, RAI, and QCOR.  Not much to get excited about in the market in general.  I would like to see a substantial pullback so cash can be deployed at levels closer to the SPX 50 week moving average, but for now buys must be small and on a tight leash.

This is what makes a market, and why a parachute is a good invention…

The Charts are extended and seem to be in need of a short term pullback, but as we said this weekend, the trend is absolutely up, and should be bought on weakness until the trend changes.

If it is that simple, why do you feel fear and hesitate?  Why do some people think the market is going to crash?

http://finance.yahoo.com/news/faber-fed-could-qe-1-143500254.html

Read and watch the above.  It will scare you and force you to ask yourself why it makes sense to be in the market.  The arguments are solid.  There are always buyers and sellers in a market as huge as the US stock market.

I just stay on the correct side of the trend.

Weekend Market Review. Stocks To Consider Owning In This Uptrend.

I feel it too.

Fear that the market will recognize it should not be going up, and greed that you should own even more of the best performing stocks in this red hot uptrend.

Shelf those emotions and use your ability to reason, set limits on your risk, and make good decisions based on readily available information.

Watch this video for some ideas:

 

SPX has room to move higher, but risk is significant

What to do?  The market certainly seems to want higher, but the risk is increasing as a visit to the 50DMA seems due.  That said, that visit may not come until next year, there are no absolute signs of a top here, so take some risk and participate.

If you have working positions, it may be time to add to those, but make sure you manage your risk with an exit strategy.

Here is my take:

 

 

SPX Has A Down Day … About Time

Nothing remarkable about today’s selling.  I am just watching for now.

The next market moving piece  of news should be the debt ceiling deal, which will likely come.  I intend to wait and see what happens when the dust settles after that news.

My approach to the market is to be a smart hunter.  Often there are times when the best thing to do is just wait for that high probability shot to set up.  Until then, do nothing.