Thursday, May 13, 2010

Market Comment 05 13 10

The stock market remains volatile confirming the negative technical condition of the market spelled out last week. It could take a week or two before we know if the recent declines are the beginning of a major downtrend or just a normal bull market correction nearing its end.

At the moment we are sitting safely in cash with the exception of our two remaining bond / income fund positions. Our high yield fund position is nearing its 50 day moving average. If the share price crosses over that line in the sand we will get a sell signal.

The big benefit of having a defined risk management plan in place is that we don’t have to anguish over making tough decisions. We merely remain disciplined and follow the plan.

1 comment:

  1. What is the importance of the Morningstar rating. I can't see where a high rating has more benefit than a mid (**) rating. Phil