Online Stock Trading | Sitting Tight On The Sidelines

Sitting Tight On The Sidelines


Filed Under Market Commentary |

After last week’s oil debacle derailing stocks, the action triggered the market to go into correction mode.  Heavy selling, in relative terms hit Wall Street pretty hard.  Stocks with strong growth were knocked down hard:  PWRD, VIT, FEED and the list goes on.  This is not the type of action you would like to see in leading type stocks.  Strong growth stocks usually catapult from their initial pivots to new highs.  Recently, this market has crushed them sending signals we just simply aren’t there yet.  We simply have no direction at this point in time, last week gave us the signal that the low volume environment is here to stay a bit longer.

Never short a dull market!  I wouldn’t be going long heavily either.  Low volume markets can be pushed around very easily whipping you out of gains in an instant.  Its best to take profits fast on both longs and shorts fast.  Give a little back to the market as you see gains of 10%, 20%, 50%.  This isn’t a raging bull market where you can let your position blow past the 20% mark without taking anything off the table.

Enjoy your week.

Market Speculator

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Comments

One Response to “Sitting Tight On The Sidelines”

  1. Sitting Tight On The Sidelines | Investors Paradise on May 27th, 2008 12:11 pm

    […] After last week’s oil debacle derailing stocks, the action triggered the market to go into correction mode.  Heavy selling, in relative terms hit Wall Street pretty hard.  Stocks with strong growth were knocked down hard:  PWRD, VIT, FEED and the list goes on.  This is not the type of action you would like to see in leading type stocks.  Strong growth stocks usually catapult from their initial pivots to new highs.  Recently, this market has crushed them sending signals we just simply … [visit site to read more] […]

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