"You should have bought RXSD and held off selling your other stock."
Since I'm not Ft Knox, I could have done that only by going on margin. Of course, if I'd known the one I was selling was going to go up 4+ pts the day after I sold it I would have for a little while. Anyway, with RXSD +2 today, and that other one -1 1/2, I'm only 3/8 net to the worse. Never can time these things perfectly... (And what I sold some of was up from a 22 touch just 5 or 6 weeks ago - after having been at 54 5 or 6 weeks before that. When I saw both were at about 34, I switched horses, primarily because I wanted something less volatile.)
Anyway, I really don't see RXSD having much downside risk. Otherwise, why would I have bought it? No, really, I do TA, and RXSD is in excellent shape. Now maybe if the whole market gets in a slump again. . .but my hunch is that we're coming out the other end of the last 2 or 2 1/2 month's pause. Even though the Dow 30 isn't near it's record (hence no media brouhaha), the S&P 500 closed at a new high yesterday.
Like I said before, once RXSD breaks through the 37-38 level there's no telling how much higher it could go. The high volume in it today, as well as the fact that it didn't reverse with the rest of the market midday, bolsters my case for RXSD to resume being a market leader in the next market leg up.
I've been known to be wrong before...
ChrisMeister |
