I went to an IBD meetup meeting this week, and everyone there was very bearish (some said they were 100% cash). I don't know if I agree with that. We are in a confirmed rally. If you don't think that's a good time to be invested, when will you? At the beginning of the next rally? But if you're that gunshy, you might even wait it out a while after the follow-through. As a wise Mauitrader once said, listen to the market. Besides, Jeff had a good point that if everyone is that bearish, this thing might just have legs.
Anyway, I did get out of KPN this morning. It gapped down on huge volume today, but found very strong support above the 50dma. I did not follow my rule here. My rule was to sell it on a close below $14, but it wasn't even close. Basically, I got scared out of it by thinking too much about which way the market will go. I need to be careful and get out of stocks when they fail (lose 7-8%), but I'm not seeing that yet in my portfolio. OTOH, there are not a whole lot of stocks that are having runaway breakouts.
I'll have to think this weekend about where I want to be in this market. I've found quite a few nice charts today, but is this the week to be getting in? I don't know, but now earnings season is finally over.
Some things that caught my eye:
- COLM low EPS but nice high on big vol today
- VPRT saw this one a week or two ago on the movers & shakers and it's back again
- WFR formed a new high with big vol on a 7month cup w/o handle. Nice fundamentals.
- VSAT also saw this one yesterday. Nice cup&handle that started in May and just slightly above the buypoint.
- EMS breakout off 1wk flat base. Strong up/down ratio.
- SYK big vol breakout from 2 wk base.
- HMIN nice technicals and breakout. Some say the china sector has topped.
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