Sunday, March 29, 2009

So do you know whats in your wallet?

I am concerned. Nikkei down 1 3/4% as I write this, Rick Wagoner has been "asked" to resign, and across the board most pre-market indicators are down by what would be 100 pts on the DJA.

Thats not the REAL DEAL, as yet. The REAL DEAL as I see it, is that a HEDGE WARNING was issued by myself on Thursday LAST, under the heading "NUCLEAR SCARENARIO".

Whereas I have no idea WHETHER or to WHAT EXTENT that idea will pan out, I do know the market is correcting, probably in equal measure to its previous advance, so having cash to ACQUIRE specific CANDIDATES at SUPPORT LEVEL depends upon your prudence in these specific moments. You will note I have advocated use of TRAILING STOP LOSS LIMIT ORDERS.

Observe that in the middle of correction turbulence, deploying them may not either be feasible or yield satisfactory results. Prudence suggests you protect yourself.

Whilst 32 of the 40 stocks selected since Jan 1 have profited in the Educational Investment Simulation, clear NEGATIVE INDICATIONS are ongoing, and have resulted in Selling Execution by TRAILING STOP LOSS LIMIT ORDERS. Clear negative indications are visible in 30 of the 40 issues under scrutiny. One stock looks as if it cannot be taken lower, but until this correction is over, the jury is out there.

If this correction is the garden variety like a "Pray & Spray" drive by shooting, that would be a plus, rather than more serious incursion like the St. Valentines Massacre or Nuclear Scarenario.

IMO opinion, this time calls for vigilance and prudence. Whats in your wallet?