Saturday, March 7, 2009
Learn The Discipline
Since the parameters of our Model Portfolio are currently to buy stock for an up trending market and use stops, all of the positions have been stopped out. And while a few stocks have crossed above their 30 DMA over the past two weeks we have decided to enter no new positions at this point. So the portfolio is in entirely in cash at this moment and we will evaluate establishing new positions new week. We have not ruled out opening a position in an up trending stock, we just choose not to do so this past week.
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2 comments:
Hi Dave,
I heard you on Market Wrap Up on Friday and had a question. One of the guys made a general statement saying to get out of Common Stocks on Financials (which I think we mostly trade) and perhaps look a the ETFs or Indices instead. My understanding of that statement was that he thought they were going away? Then I heard him (might have been someone else) state that maybe getting into Citibank (C) might be a good call in hindsight moving forward which obviously confused me? I'm more interested in WFC and wonder if you think WFC will survive or if you also think Bank Stocks are going away and it's best to focus elsewhere. I have a lot of shares of WFC (inherited with dividend reinvestment) and am wondering if I should hang on or get out. I would appreciate any clarification from the Wrap UP as well as WFC insight knowing that you have no recommendations. :)
Thanks in advance
Toni
The idea was that a trader can avoid the individual company risk by trading an ETF which the opinion was the entire industry was unlikely to disappear.
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