We had a significant break of what was a really nice uptrend. That kind of technical damage requires time to repair. I am not inclined to buy this dip just yet. Watch the video and see if you agree.
Remember last week when we were wondering if the market would ever correct? Well, it certainly has.
The wise investor is making sure that positions are protected and that profits do not turn into losses. Starting new positions with the uptrend having been damaged is a poor risk/reward proposition.
Expecting a bounce in the AM, I closed my SH position today, but may re-enter the SH if the bounce does not materialize or is particularly weak.
Good sign that that support held. I would be betting on a bounce of some sort tomorrow. Check in later for an in depth analysis.
I hope you followed my recommendation and bottled that great rally feeling, because the coming days may not be all that spectacular in the feel good department.
The market goes up and down. Go figure. We make sure to stay on the right side of the trade.
Don’t let any profits you have turn into losses. Don’t let losses get bigger than you can comfortably handle. If you have the experience to do so, make sure longs are hedged with some shorts. I have moved the vast majority of my holdings to cash and will hedge the longs with an SH position for now.
Good read from Mark Hulbert right here.
I personally started a position in SH this afternoon as the market took a turn lower to hedge some remaining long positions. Today certainly seems to have damaged the rally that began mid November 2012. It had to happen some time.
If you are paper trading GOOG, make sure you decide the level of volatility you are willing to accept. Get out now with some profit? Allow a slight dip below break even for support at the $785 level, or perhaps sell some now and wait to see if support holds? Others may even be willing to wait for a weekly chart tag of the 10 week moving average at around $700. It all depends on what you risk tolerance may be.
Check back later for a market review video.
I am not calling the top of this rally, but I am wondering why defensive stocks such as PEP and CL are getting so much buying interest.
Check back later.
Yes, the rally will end, but it sure did not today. Watch the video for an analysis on the GOOG paper trade we are following to learn some basic skills and for my take on what we can expect to happen next.
This is one strong market. Calling the top is not working if that is your game. Long and patient is the winning trade until further notice.
GOOG cleared $800. For the purposes of learning how to invest, if you started the 1/4 sized position back when we called it a reasonable risk (see video), you can safely add another 1/4 today.
Visit frequently or subscribe to our automatic email alerts so you can follow along and learn how a methodical investor can succeed in any market environment.
Where is the money being put to work?
In this comprehensive, longer than usual video, I share my opinion and analysis.
Members, click on the post title and see if you see what I see.
Not a member? Contact us for a free trial.