Pullbacks are reality of "normal" market.
We were extremely fortunate that we had a sustained UP move since June 2009.
Now 2014, has a different profile.....
2014 is more like a "normal TAPE"
Pullbacks will be more common & gains may be limited to 8% per year.
It has become a stock pickers market more so than anytime since 2009.
One has to adjust to this "new TAPE"
You have to figure out how to make that elusive 8%
As markets will be volatile which is normal, you need to adjust to this new reality.
This market is more "investor friendly" than "trader friendly"
Investing is a long term commitment to a good story or emerging story.
Those who do not adjust will be whipsawed by this market and will fall behind badly.
SO..this weekend, you need to understand this "new TAPE" and plan strategy accordingly,
Remember "nobody is smarter than market"
It is impossible to beat the TAPE .....
On the plus side, we have tremendous buying power from institutions & retail, who have been out of this market due to volatility & margin calls.
S&P 500 should take out 50 DMA with ease & may move towards 2000 from hereon.
BUT ..there is too many negative news coming from all over the world, some economic negativity & some world politics issues, like its IRAQ all over again....
BLOG does NOT give buy or sell.
Next post on Monday around 2 PM.
Saleem
8 comments:
Hey Saleem,
I think the fever might possibly have broken this week. I am more positive as we enter this earnings season and hope the questionable technical backdrop gives me a chance to add to some of my favorite companies at decent prices. There are good reasons to add to both US-centric growth stocks and beaten-down global cyclicals as we find value in both areas.
Stocktrader
Hi Stocktrader,
I am expecting move towards 2000 in S&P 500 and then take it from there..i need to monitor breadth of this shaky market.
Saleem
Hey Saleem,
Bought SPLK @ 61.702.
Better late than never? The move is so aggressive to the upside, and is holding above the 200 DMA breakout nicely so far. I'll bail if the breakout fails, but I think it has legs right now.
Stocktrader
Hey Saleem,
Also bought PFPT @ 39.644.
I'm not sure whether I should buy BWLD or not. The chart action based on today's downgrade looks rough.
Stocktrader
Hey Saleem,
Oh my goodness! GTAT just filed for bankruptcy.
Stocktrader
Hi Stocktrader,
Good luck with SPLK and PFPT.
GTAT is surprising.
Saleem
Hey Saleem,
Bought PANW @ 102.00.
Seasonal trends and great charts could make these kinds of stocks the great runners into year end.
Stocktrader
Hi Stocktrader,
PANW has been a great stock and undisputed leader in its sector.
Saleem
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