Well maybe not that big and maybe not even up by the end of the day.
The thing is though, not much has changed. If 1261 (the lowest number I saw) turns out to be the low of this correction and everything falls back into place in the next few days or weeks you maybe have had a nice little stress test for your portfolio. So how did it hold up?
A while back I mentioned in a post that the dollar would likely correct some of the massive selling and portfolios heavy in foreign stocks will lag when that happens. That has been the case this week. That was an important comment I made. In your portfolio you favor certain things, I'm sure. You need to understand when your portfolio will lag so that when it happens you don't make a poor decision.
On Wednesday of this week I mentioned a couple of times that the market has to have an up day in here soon. Maybe today is it? One thing to consider is that perhaps today, if it keeps the gain, is just absorbing the over sold condition and that next week is just as ugly. I don't know and I am not that concerned about trying to guess. I am concerned about the market right now as I said the other day but my only plan is to stick to my strategy.
OG left a comment earlier about speaking up for the fraidy cats. First, be neither brave nor afraid. A 5% decline is still not a lot. OG said he raised a little cash (sounds good so far, me too) and that he is using 1240 on the S&P 500 to sell more. I have no idea why he chose 1240, perhaps I could guess right but it does not matter. He has a clear and simple plan, probably something he figured out earlier and all he has to do now is stick to it.
That is all you need to do too.
There is nothing over that last couple of weeks that is new to the market. Don't get upset, take a breath, relax and stick to your plan.
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3 comments:
Hey Roger, The Fed is still making alternating comments - did you see that St. Louis Fed's Poole made hawkish comments on Thursday, possibly causing the late selloff.
So what happens today? Hoeing of the Kansas City Fed speaks out with dovish comments to bolster the market.
Could be that they see the risks of interest rates versus housing slow down so tightly balanced they are desparately trying to hedge any comment that would seem to tip their hand.
On S&P 1240, it is the result of Mojena Market Timing's (Free Web Site) sell signal at 1245 minus a little slop-over.
OG
I feel the stock market is James Dean on Rebel W/O A Cause when he said to Jim Bachus and the woman playing his mother "you're tearing me apahhht!"
James Dean was born in Fairland, IN. which is about 40 miles up the pike from my home. We will have beautiful weather tomorrow on Saturday(the first time in about 8 days with out some rain). I think I will mow the lawn in the AM and sneak off the Indy 500 qualifications in the afternoon, watch the cars and the girls and get sunburned. Tom in Indy
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