CASH is KING
I had a lot of my readers question my judgement last week when I indicated that this might be a good time to be in CASH Two weeks ago we had 10 distribution days and last week it mounted to 14. Currently it is 15. The bulk of those distribution days came in the last 30 days. That is quite alarming. As a Retail Trader who manages his own account, I consider this to be a "Market in Correction" I just tweeted the following statement from Jesse Livermore ( the greatest stock trader of our time)
"Every once in a while go to CASH, take a break. Don't try to play the market all the time. Too tough on the emotions"
My Market Outlook
More than 75% of the S&P 500 companies have already reported their earnings and this week we will have more retailers report their earnings. Stock Charts of retailers like $JCP, $SHLD, $M, $TJX and the $XRT (Retail etf) don't inspire much confidence. They have been on the downtrend since mid August (back to school season) and now they are all trading below the 200 day sma (simple moving average) All the 9 major sector etf's are also trending in a downward slope and heading close to the 200 day sma As a growth stock investor, I also monitor the small cap and mid cap growth stocks indexes ($IVW, $IJK, $IJT) and they are all pointing similarly in a down ward slope. The only good piece of news that I have is that the transportation etf's - $DJT and $IYT are trading above the 50 day sma There is a Dow theory that suggests that:
"Transports generally indicate the strength of the economy"
Quite frankly I prefer to look at the individual stock charts and sector etf's to get my sentiments of the market.
The coming week is an Election Week and everyone can expect that the market will have very high volatility. This is the time to raise your trailing stops to conserve profits in a trade but also liquidate losing positions and build some CASH in your portfolio. Continue to build your Stock Watch List and stay very engaged with the market. Opportunities will come and you want to be prepared to take a position at the right time and at the right price.
Special 90 minutes Webinar
The subject of this Webinar will be:
"How I Scan For Growth Stocks and How I Create a Trade Plan"
This special webinar will be on November 19th @ 2.00 pm (Eastern Time)
The session will be recorded and made available to all participants. The cost of the webinar will be $49.00
You will walk away from the session with a "Stock Watch List" and a "Trade Plan"
I shall be sending out the link for those of you that have already indicated an interest. It will be a limited class size so hurry and don't procrastinate. It will be a high energy and fast paced presentation. Send in questions that you would like addressed at the Webinar.
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