Aggressive Vs. Conservative
Today’s take is going to be short and sweet! I counted two days of
distribution on the S&P 500 on 12/11 and 12/12 and only one day of
distribution on the Nasdaq on 12/11.
These two days are only worth noting and should not be a cause for concern,
especially after the move we’ve seen in the market.
The homebuilding group continues to advance. Even today, Beazer Homes
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PowerRating)
opened down with the market, but has since rallied and taken out yesterday’s
high. NVR Inc.
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PowerRating) has managed to successfully trade above its pivot point of
183.10 on a double-bottom base that began on 5/11 and broke out on 11/30.
As the market has paused for a moment, there are not too many setups
appearing to talk about. Every day that passes will present more opportunities
if this market is for real. I am constantly scanning for stocks that may be
ready to lead the market higher. Even though breakouts have not been too
successful or plentiful, if the market stays strong, they will eventually start
returning investors some profits.
One quick footnote in response to a common e-mail question I have been
receiving: How can one distinguish between aggressive and conservative for the
I-T investor? The answer lies within money management. Although I won’t go as
far as quantifying it right now, an aggressive investor will be investing a
larger chunk of their account in a stock, whereas a conservative investor may
decide only to make a small investment. This can usually be defined in terms of
a percentage of your account. An aggressive investor may buy stock XYZ with 50%
of their account, and the conservative investor may also buy XYZ, but only with 5%
of their account. The ultimate answer on which is best for you depends on your
own risk tolerance and what allows you to sleep at night!
Have a great weekend,