To be honest most of my portfolio is from DJIA 1,000 to 2,000 days. Some from even before it finally crossed 1,000 so I've never been of a mind to sell out. It's pretty tough to sell General Electric, for example, when the dividends are more than what you paid for the stock in the first place.
I bailed out of most of my Mutual Funds last Spring. Other than that I have nothing of concern.
I think the market goes down slowly, perhaps it will rise into March like we were saying but the key will be to watch the overall action. Relative to the past, that is. Every time this market moves higher it is sold into. The DJIA has to clear out 11,400 to make it appear as if the trend as broken. If you notice, the 11,000 level was only pinpricked yesterday and the day before, then the DJIA was beaten down again.
If you go back to November, the Highs were on four days. They were
10993
11006
10996
and 11001
The High in October was 10995. So what that tells me is that the world is going to Sell DJIA 11,000 until it goes by it significantly. Then even if it does the trend is intact as long as 11,400 is not taken out.
You know, instead of taking yourself out of the game, unless you are really concerned of course, you may want to hedge by investing in Index Puts at key levels like that. Or if they are significant positions in various sectors then the more expensive route of taking Equity puts.
Just a thought. But that's what I see. I'm looking at a wall of selling at DJ 11K and a recessionary economy. I certainly won't be investing in new stock positions.
I don't trade stock, however, so you may want to keep that in mind. |
