Am I wrong?
My bullish stance received a blow last evening as the Dow tumbled in the last
half hour of trading. I paid the price as my shares, some of which I had only
just bought, earlier in the day or on Friday, tumbled. I
face these problems because I want to make decent profits as the market goes up, but
also keep those profits when the market goes down. I need to sell when I worry and buy back when my confidence is restored. This means lots of activity, generating more heat than light, when the market is choppy. I just have
to take it on the chin when the market is
undecided about its direction.
The charts shows my present problem very clearly. The market was weak but trading continued above the
support level, established over the last three weeks, until ten minutes before
the close. It then slumped. The volume was slightly above average but gave no clear warning of sustained danger. The volume peak 5 days ago might still be the unresolved danger signal.
Today
European markets have been weakened by the uncertain result of the Italian
election and have followed the US market. Surprisingly the € and the £ are strengthening a little after a prolonged decline.
All in all
it is hard to guess what will happen next. My best bet is that the pullback
will be temporary so I will hold on until circumstance s prove me wrong.
The shares
I have bought in the US to replace those I sold on Thursday are NTWK, GASS,
TESO, OMN, RUTH, FLO. So far only NTWK has proved a winner putting on 13% in
two days.
For my wife’s
portfolio in the UK I clearly messed up my timing by repurchasing INCH, ABF, ISYS, OXIG
and I replaced ITV with SDR.
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