Thursday, February 11, 2010

Markets are stalling

The markets have'nt really followed through since I turned bullish last Friday. The pattern that seems to be emerging on the major indexes looks more like a bear flag to me than a powerful thrust after a climatic reversal. So unless the markets make a big move by the end of today and seem poised to close near HOD then I'm going to liquidate my positions in NEP and SPU and go 100% cash. I will only enter new positions into strength on breakouts as opposed to buying resumptions from pullbacks. My decision to turn bullish seems to be incorrect thus far but by using stops I have only lost about $100. For instance if I had held onto FSII I would have been a lot worse off than I am now. Risk management is the major key to surviving in the markets.

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