08-14-10 Stock Investors’ and Traders’ Weekend Update: Caution, Risk to Downside
The bottom line: We have low volume, we had an inside day Friday with higher lows and lower highs, we have no support before $SPX 1063.…the risk is to the downside. If we don’t bounce, it could get ugly. If we bounce, its easy then. Watch where the money is flowing. I’ll blog and tweet about that.
IRA Investments: What am I doing? I’m sitting on 30% CASH in IRA with 3% to 6% stops on remaining positions. I stand to lose another 3-4% on total account value if we go down hard. I’m down about 1% for the year, 5% total and I’m OUT: 75% to 95% CASH.
Trading Account: I’m 20% CASH and holding mostly Ag (MOS, AGU, CF, DE), some Tech that bounced hard or didn’t go down (like FFIV, VMW, BIDU, AKAM), some Materials/Metals (like CLF, TIE) and some LVS. I’ll go to all CASH if we go down hard. I expect SPX 1063 and I’ll try to be nimble and go very long if we bounce. But SPX may just be half way down. Watch out below.
High Yield Account: Doing nothing but collecting dividends. Money is flowing here, these are doing well.
I’ve posted 3 or 4 videos ranging from 9 to 15 minutes on my You Tube channel, “DontTakeLosses: Stock Investor”.
Disclosure: long all mentioned