FLASH...MAIN MARKET INDICATORS REVERSE TO NEGATIVE!!!

AND DID THEY GO NEGATIVE FAST

The main technical indicators the Author follows have turned negative. Just a couple of weeks ago the DJIA was approaching 12,000. Now it is aimed at 11,000. So as investors we must move from a making gains mode to a preserving gains mode.

Here are some thoughts:

Take some gains off the table. If you are up 50%, sell half of the position and tighten up your stops. Unless taxable gains are an issue, put a stop in at 10% below the position for half of the position. At a 20% drop, sell the remaining half.

If the stock comes back on a rally, you can always buy it back. Owning a stock is not like going to the high school prom or losing one’s virginity. Once it goes it is not gone forever. You can always buy it back when the price and the market looks good.

Buy some protective puts on stocks to participate in any gains that might accrue to individual stocks.

Start looking at strategies for a falling market. Buy naked puts, look at inverse funds.

Not much more to say. The Author has a lot on his plate, but will follow-up with further developments.

Just keep your powder dry and keep the ponies in the corral tonight.

IT’S ALWAYS THE REAL THING IN THE DESERT OF THE REAL!