Another week ending with the stock market in consolidation mode. If you’re a stock picker you have done well the last two weeks. If not your most likely getting whipsawed.
So when will the market break out as I am anticipating? I wish I could tell you as no one can predict that. You can only go with the clues provided and then draw your own conclusions from these clues.
The biggest clue to me is the Fed finally keeping their mouth shut about interest rate hikes. I think they have been embarrassed enough from six months ago when they were pretty much in lockstep about 3 or 4 rate hikes this year. Talk about being behind the curve:)
I am still long gld and long a position in SPY. Also a scattered amount of individual stocks. My strategy has pretty much been to find stocks that have the potential for an explosive move and then when I get it abandon ship! So far so good. Just yesterday I hit a 5% move in about 2 hours. Took my profits and moved on.
Now this strategy is not the best in a trending market. However in a consolidation, if you have a good method of picking stocks it can work out very well.
Trending markets you want to ride out your gains for all you can squeeze out of them. But we are not in a trending market now.
When and if we do break out that is when to consider a shift in strategy. But not before then.
Not much different on the news from this morning. The overnight markets are slight to the positive side about an hour before the open. Unlike the last few days, the market has produced gains so far from the overnight session.
I had an interesting email the other night:
“Rick, thanks for the time and effort you put into your site. I have followed you from almost day 1!. That was over 13 years ago (time does fly) . I have noticed a shift in your site from the great poker advice to a more methodical mechanical approach. Is this intentional or something maybe you do not realize is happening? For me, I always enjoyed your up to date comments about the poker world and strategy. It was not only educational but entertaining. Your comments about the various players were hysterical. So how about more of that from time to time. Thanks again”
For me, the poker world is gone. I have retired from playing poker. If you want to know why you can find out my earlier comments explaining it. As you get older priorities change. Not only that you become less tolerant of negativity. Not only from the change in perspective you get as you get older but also to avoid the harmful health consequences of being around negative and dysfunctional people. Nothing is more destructive than surrounding yourself with negative dysfunctional types! But again I go into this in much more detail in earlier posts. My poker days are over and after the last year or so I can say happily so.
If you want to follow my comments and some of my trades you can follow @rickjswings. It’s my private twitter feed and is free.
Good Luck Today
RickJ’s Handicapping Picks