Friday, April 30, 2010

backed out of the market

since i had high positions at high prices in the market in aapl, rcl, dpz and lvs , i backed out from the market. There is a great chance at a 10% correction is underway. There is instability in world markets because of greece debacle and the markets in u.s have been rallying from feb,2010.

Looking at the 30 average of S&P it is highly probably that a correction is coming. Even when corrections come it is possible to hold on stocks but if bought at the end of the rally there is great danger that all the profits will be wiped off and can land in losses. If stocks were bought at the beginning of the rally there is no danger of falling into the red zone. Falling into the red zone causes psychological panic in the investor. It hurts self confidence and one feels like a loser. Hence never take a from your original capital, when you see the danger coming. secure yours original capital and major profits. One needs to know when to back off from the market and when to get in.
 The S&P and the other stocks i invested in will come back to their 30 day averages. That is the time to invest again. KERX is looking good. Moved magnificiently. Monday may be a good day to bay at 5.10

 It is a good opportunity to test one's analysis.

1 comment:

Gade said...

it is interesting to see that monday was up day. Dpz and vrx are doing good. these are the stocks that have low eps near 10.

What about market correction. It is still possible. Nothing definate can be said. just have to wait. since i got many stocks at higher prices there is no point in buying now when the rally is at the top point. wait adn see.