With the action Friday, we have to run a bit of a tighter ship now and keep an eagle eye on any goofy stock action. Rather than giving a benefit of a doubt, I am going to be more rigid on cutting potential reversals if the charts begin to act bad. Many of the stocks I have been buying the past few weeks are not 'leaders' since most of the leaders are up 50-60% in 2+ months with no breaks, so when dealing with these lagging type of stocks, I have a lot less leeway.
I was hoping VMWare (VMW) was ready to break out last week when I bought it as it cleared back over the 50 day moving average, and things looked dandy until Friday. This morning's action is not the type I like to see, and rather than waiting to see how the stock closes I am taking my 2% loss and putting that capital back to cash.
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows