Being an Investor in a Trader's Market
Opportunities still exist. Here's how to spot them.
The following email exemplifies the type of questions I've received regarding this approach:
The talking heads seem to [be] touting this as the one that will reverse the current rally we have been experiencing.
When I look out to the weekly charts I see many stocks at support at either the 20 or the 50 sma/ema. Your thoughts would be very much appreciated.
I had been concentrating on building core positions at a low cost basis so I could build around those on a pullback, which I think we have at this juncture. Do you think my judgment is flawed, and should I be positioning for further downside or begin scaling in to stocks at recent price levels?
I agree that not only the market indices but also numerous sectors and individual stocks are bumping against resistance or sitting right at support levels; many are at key moving averages. As you recall, I'm not a buy-and-forget investor, but an active manager of longer-term positions in my growth portfolios.
As an income and retirement investor, the growth portfolio complements my income holdings, and is one method I use to provide inflation protection. Core holdings provide cost support insofar as they allow me to build positions at a lower cost basis from which to trade with the core underlying position.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter