You don't know what to make of this market. The S&P 500 tried several times over the past year to set new highs and failed every time. The index closed on Friday back at spring of 2014 levels. Volume is still favoring down-close days, so the near future doesn't look too bright. We may be starting a rebound, but recent rallies have quickly died off.
So what's the best strategy? There is no lack of suggestions in the financial news. But every author and analyst has a different opinion. Sell everything, best time to buy, and everything in-between.
So I will offer my approach. I've learned over the years that market situations like the current one are best handled by taking a step back and viewing it from a distance. Take time off. Go away for a long weekend, a week or two, or a month.
At first, try to relax and forget recent events (but keep an eye on any open positions. What has worked best for me in the past is to close out all short-term open positions so I don't have to worry about them).
Then, as my mind opens up, I consider a wide variety of strategies, investment approaches I learned long ago but weren't appropriate at the time, and possible changes to my money management and trading plans.
For example, a couple of weeks ago I rented an oceanfront cottage in New Hampshire. I'll admit not too many people do this in the middle of January. But the sound of the ocean cleanses the mind. The view is calming.
As I write this on Sunday morning, yesterday's blizzard that hit the east coast has departed. While it didn't drop any snow up here, the offshore storm, the high tide, and the full moon, is causing a spectacular show along the shore.
Thirty to forty-foot sprays are leaping above the breakwall. I'll head back to civilization tomorrow morning. But I won't be worried about how the markets are going to open. I will be thinking about the ocean, the crashing waves, and the gorgeous sky. Mr. stock market, you don't compare.
Of course, there's much more you need to know and many more stocks you can capitalize upon each and every day. To find out more, please click on the following link: www.markettamer.com/seasonal
Copyright (C) 2016 Stock & Options Training LLC
Gregg Harris is the Chief Technical Strategist at MarketTamer.com.
MarketTamer is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of MarketTamer are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.
The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.
The content on any of MarketTamer websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options (http://www.optionsclearing.com/about/publications/character-risks.jsp). The www.MarketTamer.com educational training program and software services are provided to improve financial understanding.
The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.
Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and MarketTamer.com, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.
Also on Market Tamer…
Follow Us on Facebook