The Selling Continues 2/21/2012

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.


Did you bottle that good feeling?

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.


Well … Maybe Yesterday Was A Top After All 2/20/2013

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.



GOOG Paper Trade Exercise Update

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.

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