How to take a defensive posture? Mark Minvervini gave us details:
1. Get off margin immediately
2. Raise at least 25-50% cash
3. If you choose to trade, take smaller than normal position sizes
4. Reduce overexposure in any one industry group and diversify more broadly
5. Reduce exposure to high beta stocks
6. Avoid laggard stocks (even if they look cheap)
7. Nail down profits when you have them (be less greedy)
8. Tighten up your stop-losses (be less forgiving)
9. Sell all stocks that break down in price (especially if they can’t rally)
10. Upgrade in quality and reduce exposure to low priced stocks
Sunday, January 23, 2011
Wednesday, January 19, 2011
Friday, January 14, 2011
Wednesday, January 12, 2011
Monday, January 10, 2011
Another book I really like
I know this book is an old one, but it is a classic. I don't know why I had not read it until recently.
Sunday, January 9, 2011
The book I am currently reading and loving it!
Any William O'Neil's fan must read it. I just bought it this morning and immediately loving it. I have to recommend it to you all.
Thursday, January 6, 2011
We lost retail and semi
Retail and semiconductors, two leading sectors that led this powerful rally off the September low, breaks the uptrend today. The breakdown also confirms my caution near term.
Tuesday, January 4, 2011
Time to be cautious
It has been a long time since I posted the good and bad analysis. Now I think it is the time again. First, the good part. The market is still in a confirmed uptrend and there are still some stocks breaking out. Now the bad part. The market leaders have stopped leading, namely BIDU, CMG, NFLX, CRM etc. The Chinese speculative small caps are on fire, namely SHZ, CHGS, which usually indicates an end of the move. The bullish sentiment is way too high that usually comes in near a top. In conclusion, the market is due for some sort of pullback and I am cautious near term.
Monday, January 3, 2011
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