Wednesday, January 20, 2010

[ConservativeOptionStrategies] Re: My 2010 CC Trades

 

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.

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.

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.

G

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