What’s Your Plan?
After the
recent route we have had in the major indices, it’s no doubt that
negativity is going to increase out there. Major news publications are going to
do their best to push investors away from the stock market. The more this
happens, the better (and sooner) the eventual rally will be.
Today’s decline is seeing the end of
a potential rally in the Nasdaq
(
$COMPQ |
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News |
PowerRating)
and the S&P 500
(
$SPX |
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PowerRating) as they have
undercut their recent lows. Additionally, many leading stocks are having trouble
making any headway due to the recent market.
Lockheed
Martin
(
LMT |
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News |
PowerRating) is pulling back from its most recent move higher.
Wellpoint
(
WLP |
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PowerRating) is fighting to stay above the 50-day moving
average.
Merit Medical
Systems
(
MMSI |
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News |
PowerRating) had trouble moving out of its ascending base,
most likely due to the current market.
Over the weekend, I was able to find a
few stocks worth watching, but with the selling over the last few days, many of
these stocks have been knocked down.
DR Horton
(
DHI |
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Chart |
News |
PowerRating) is trying to hold its 50-day moving average.
Knight
Transportation
(
KNGT |
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Chart |
News |
PowerRating) has lost about $3 from when I first looked
at it on Sunday.
For the most part, it is very tough to
make money in stocks right now, at least from the long side. What about the
short side? Everyone jumped on the bandwagon towards the end of the 1990s by
buying any tech stock that had a heartbeat, and most people made good money
initially. But, as the Bear market began, most people lost a lot more than their
profits over the preceding two years.
Right now, I cannot find anyone with
something positive to say about the market, and I have had more short-selling
questions recently, than over the past two years. I am not saying the market
can’t continue dropping in the near-term, but mass opinion does not work in
the stock market and I am seeing almost total negativity out there right now.
This is the time to be patient and
focus on your overall plan. Do you have a plan for how you invest? If you are
looking to trade and take money out of the market on a daily basis, why have you
chosen this course of action? What are your goals in your stock market
investing/trading? A solid plan is what helps us handle uncertain times until
the market and our trading gets back on track.
Happy Fourth,