Overnight markets soared on the prospect of recovery. The month is up about 9 1/2%, the best monthly performance since 2000.
Technicians are slobbering over themselves as they target a further rise to S&P 1000 (closed at 873) and beyond.
Conflicting earnings reports are being ignored; Textron further reduces it’s personal jet line as General Dynamics says the worst is over. Chrysler files for bankruptcy, for example, while Ford’s stock advances.
Notwithstanding these cross winds I am going with the flow and adding even more to my equities account. I have reduced my cash balance from 90% in March to about 30% today. Much of that will find homes today in stocks.
Long-time readers know that I have railing against buy and hold strategies. The time for abandonment of that thought is not at hand. I continue to rent stocks and will fight investor’s tendencies to fall in love with companies and symbols.
I have grown to hate stops. It has been my practice to place sell-stops about 3%-7% below the last sale. Specialists and market makers seem to devour my orders for a quick profit…for them, not me. Then, the shares seemingly go right back up. Perhaps I remember only those instances and not those stops that saved me from a further decline.
Sidebar
From THE SHARK REPORT In the news- check out the specifics of the latest Obama polls – tells a lot about this country.
Won $9 last night at poker! Can life be any better? Oh, today’s best news: evidence shows daily wine drinking adds five years to life! Holy cow, I’m going to live for ever! Make it a great day!
