I am still not going all-in long or anything close to it, just yet. However, as the market shows signs of improvement I am resisting the urge to fight the tape. Perhaps this is another trap before we roll over. After all, the 50 day moving average is still declining on the indices. With that in mind, I have a close eye on all positions and are merely legging in to see how they fare. This methodically legging back in strategy has worked exceptionally well for me over the years, particularly when I have kept my powder dry and completely missed out on the carnage many portfolios took in the 11% broad market correction. If we are just bottoming now, then the time to increase your aggression will be there, and then some. If we are not yet done with this correction, you are still keeping capital safe, by and large.
I am looking to see whether the market continues to let breakouts stick. To me, in addition to broader participation from stocks, that is one of the hallmarks of a healthier market. The biotechs are strong, as well as select techs, but we likely need better charts, healing through time, across the board before we are off to the races.
Back with more later. You can find me in the 12631 chat room for now.
http://www.youtube.com/watch?v=7Q3SFsr42VQ&feature=player_embedded
best pic ever. i need a beach and a beer
hah thanks