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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?


To: Scott H. Davis who wrote (1676)9/12/1999 9:34:00 PM
From: HeyRainier  Read Replies (1) | Respond to of 1720
 
Scott,

If the sector is behaving well, especially relative to the broader markets, that is reason enough to be hanging on. Relative performance is what counts in the portfolio management world.

With regard to that article, I am somewhat in agreement that we are "living on borrowed time," partly due to that wacky A/D divergence, but also because of Y2K approaching. I believe I mentioned earlier that the propensity for profit taking will increase. That will no doubt add to volatility. In the meantime, however, as long as the stocks you are holding are moving well, keep it. When your MA's start deteriorating though, then it would be prudent to take those profits off the table.

<<I've taken some cash off the table, locking in some good gains - to my own hurt so far.>>

Then the market just told you that you either (1) did not use an MA to keep you in the trend or (2) you used the wrong MA length. Which one was it? When these things run, they can run. But as the saying goes, nobody has ever gotten poor taking a profit.

RT