This is a tough market to take new positions in. I feel the risk/reward is not good enough to warrant any new long-term positions. Therefore, I've made some significant adjustments to my 401k to position for a potential short-term down trend...per my prior blog posts. Capital preservation is what I'm striving for until I see some sort of correction in the market in the amount of at least 4%. If the markets come back to test the 20 or 50 day ma, I will begin to scale back into more aggressive positions.
Gold and Oil are specific areas that I would consider holding stocks in. I've been watching $RIC to dip below $11, which occurred yesterday. I took a position at $10.75 and thought it would bounce there. Unfortunately, it kept diving down. Instead of stopping out, I held expecting a bounce. I'm currently down about 5%, but I think it could bounce from here. Tomorrow could be an important day for deciding whether I stay in or cut my losses. Fingers crossed....
Until I see a decent pull back in the markets, my position sizes will be smaller and my stops will be tighter. I will also be very picky about my entries.
Good luck to all...
~JP
No comments:
Post a Comment