Thursday, July 26, 2007

MARKET INDICATORS NEGATIVE

With the market indices in freefall, all market indicators the Author follows (except one) have reversed into negative territory. This reversal requires that defensive strategies be put in place. Here are some examples:

1. Stop-Loss Orders. Tighten up stop loss orders. Protect gains and pat yourself on the back for recent gains you have pocketed.
2. Cash Makes no Enemies. Move into cash. Keep it there until the markets reverse.
3. Profit from Market Reversals. Shorting stocks (and indices), and purchasing inverse index funds are the flip side of a good investment style.
4. Remember Warren Buffet’s Rule Number One. Don’t Lose Money! BTW, Buffets’ second rule is: Never Forget Rule Number One.

Short, or inverse index funds, were the topic of a recent post, "New ETFs Allow Average Investors to Short Indices or Leverage Indices." This post is worth reviewing and the Author is likely to move much of the portfolio into inverse funds to profit if the markets continue to fall.

MAKE IT MOVING UP AND MOVING DOWN IN THE DESERT OF THE REAL!

0 Comments:

Post a Comment

Subscribe to Post Comments [Atom]

<< Home