Due to some time constraints this week, I’ve been unable to update as frequently as previous weeks. One of these days, I’ll figure out how to update the site from my phone. I do want to get out a quick reminder though. We are in a serious sell-off that has picked up steam as the days go on. Earlier this week, before the sell-off picked up steam, we started seeing warning signs. Swing trades were stopped out and I did not initiate anymore. Outside of my two longer-term positions in Dejour Energy (DEJ) and Gastar Exploration (GST), I am mostly cash. In a downtrend, I protect capital, I do not predict a bottom. Most everyone who predicts a bottom is wrong 99% of the time. They make one right call in their lifetime and they are considered an oracle, even if they never make another good call. I would rather see a sustained rally and snag the majority of the bull market with less risk than to try and call a bottom, only to find out I am wrong.
Individual investors are not large funds, we do not have unlimited capital, so averaging down is not wise unless you have significant cash compared to your invested positions. If you don’t rack up significant losses in this downtrend, you will be profitable almost immediately whenever the bull market establishes itself.
Due to time constraints, my stocktalks and twitter accounts usually receive the fastest updates. Utilize those as much as possible. This mornings stocktalk/twitter message, in retrospect, was dead-on:
As always, do your own homework to see if you agree. Good luck out there.
CLICK HERE FOR FREE GOOGLE EMAIL ALERTS WHEN WE POST A NEW ARTICLE
JOIN THE REDESIGNED FREE FORUMS FOR MORE TRADE IDEAS AND DETAILS
Mike
At the time of publication, Kudrna was long GST and DEJ but positions may change at any time.
