On October 4th, just over 3 weeks ago the headlines were touting a new Bear Market after the US markets fell at least 20% from their recent highs. That day happened to mark a 52-week low for stocks and since that time the S&P 500 has rallied 20% to a new multi-month high.
The poor, uneducated investors that decided to sell stocks after the headlines grabbed the attention of the media are now pacing and trying to figure out how to get back into the market.
This is just one more reason I always suggest individual investors stay away from attempting to “time the market”. Sure it is doable, but leave that up to people like me that look at the charts 24/7 and let us do our job. Granted I will be wrong, but the key is to remove emotions and use the research we have to make educated decisions – NOT Emotional Decisions.
The Big Question now is whether it is time to Buy into the current rally or Sell into the strength.
My answer is a little bit of both. I can guarantee investors are sitting on stocks/ETFs they have wanted to sell for weeks and were looking for a bounce. Well here is your bounce!!
If you are not comfortable with a position, sell into the rally. OR place a stop-loss a few percentage points below the current price in the event the stock begins to fall. This will allow for a higher sell price if the market rally continues.
Investors that are under invested can now look to stocks on their WatchList and use any type of pullback in the next week as an opportunity to play what I feel could be a year-end rally that takes stocks higher. The key is buying on weakness and Do Not Chase now and panic that you missed the entire rally.
No comments:
Post a Comment