Some thoughts.....
Tradelite your approach to this market sounds very much like mine, I have abandoned buy and hold in this market and am only daytrading. Because of the big tech sell-off, many of these stocks have overhead resistance levels which can be exploited. I am now using charts to do some short-selling into strength as they rally into overhead resistance on a short-term basis only.
I also moved to about 60% cash in late March, but didn't get out unscathed as a I held onto a large trading position in LPTHA too long (in at average of 48, out at 37). As far as core positions, I think the only ones I will hold are the ones I have free shares in, such as ARTT, LPTHA and ADAP. For example, I bought a core position in LPTHA in December at 11, then sold 1/3 of the position at 33, the other 2/3 sits in my long term account free and clear. I will hold these shares as long as possible. I can sleep at night with these type of long-term holds. This is the most valuable strategy I have learned from Rande and this board.
I know this may not be a very popular view, but I almost welcome a bear market, if that's what we are in now, as long as it only lasts a couple months or so. This will allow our favorite stocks to form sound price bases from which we can identify the new leaders of the next bull market. It is a good time to do research, study charts, etc., spend time with the family, and enjoy the spring flowers (like Rande, hehe). BTW, I dont't trust today's biotech strength and I think it is a temporary bounce.
Prophet Often |
