For the past two years this market has been on a steady rise, going from less than 7000 to touch 12,000. See Here.
On Friday we had a modest drop which I think was based on the fears of the unknown in Egypt (Markets hate unknowns...especially on Fridays)
This was a good reminder that for the last two years if you were trading in the markets you could almost do no wrong and be led to think that you knew what you were doing. Friday was a sobering reminder that the market direction can and does change and it can be humbling when it does.
Some viewed this as a buying opportunity, some jumped ship.
What will I do????
Well...IBD's Outlook is " Up Trend Under Pressure" and my interpretation of the advice given by the Copernicus Systems is that we are getting mixed signals at this time but it is not time to go to cash...at least I do not plan to do so this week
The group of seven stocks that I have for a trades have done well so far.
The seven were : AMAT, MON, IP, JPM, EMC, ARBA and AAPL.
I sold AMAT last week based on the Box Theory and I will sell ARBA on Monday based on this plan .
Last week I did not see any stocks of interest. This week I see plenty so I am taking some comfort in that but will wait until we see how this weeks events unfold and plan to hold the remaining five of the seven and see if they can find some traction
For ETF's, (Exchange Traded Funds), I did sell HHH and picked up XLF and SOXL
I still have what may be too much oil with both OIH and XLE. These could be negatively effected by Mid-Eastern events. One friend is picking up Canadian Oil stocks which could be safer
Regards to all and have a good week.
A little change of plans on Monday morning. I will be selling some UWM at the open this morning (Monday). I have been seeing a rotation out of the small cap stocks, and this one is leveraged. Leaving it will be my move to a more conservative portfolio