Online Stock Trading | Current Stock Market Conditions

Current Stock Market Conditions


Filed Under Market Commentary, Market Psychology |

The stock market has been in a bull market since March ‘03, 4+ years without a signficant correction.  Certainly we have come close to getting a more signficant correction than 10% but, have been unable to wipe the table clean.  Markets simply do not go up forever, this market seems like it can not go down.  At some point it will suffer a major correction but it isn’t in the cards at the moment. 

Current stock market leaders:  BIDU, GOOG, AAPL, CROX have all held major support areas.  Its easy to see their huge runups during this bull market but the fact remains they have not broken down.  Major stock market corrections occur when the market leaders break their support levels. 

I do not hold an opinion on the market, I know all to well what market opinions will do to my trading account.  For example:  the bears who bought QID on August 16th are down some 11% on their position.  Nice opinion, if they gave up on Thursday they would have been down 14%.  Holding a market opinion is simply ludacris here. 

Although we are in a confirmed market rally, we are simply in a trendless market.  These are the times to be heavily invested in cash.  A heavy cash load will keep you from feeling the affects of the whipsaw action.  I do believe its ok to try and look for new longs but you simply can not be allocating large amounts of cash to any position.  I am staying light on the long side and heavy in cash.

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