Indeed, fully cashing out Thursday proved prudent as we entered into a correction or our "Stop Losses" mode on Friday.
We will now "wait-and-see" - watching the market's price and volume action. A follow-through confirmation will put us back into our "Green Light" mode.
G
--- In ConservativeOptionS
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> Market Direction: "Caution" - effective 20-JAN-2010
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> G
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> --- In ConservativeOptionS
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> > Not likely. In my experience, when a stock drops enough to trigger my sell rule it is best to avoid re-entry. It usually turns out there is a reason for the significant decline.
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> > Furthermore, once all my positions (as have again in 2010) are stopped, most often the market is pending a downturn. Countless growth stocks (2009 winners) are now slicing through their 50-day moving averages.
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> > Not a good omen. Plus distribution days are at an elevated level (can indicate a top). I will wait for further confirmation to the upside before getting into any more positions.
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> > G
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