Tim Reazor
Chief Investment Strategist
NorAm Asset Management
By the time you read this the jobs number has been out and markets are reacting. This number shouldn’t change how you handle your investments today. Holding your stocks though today means that you would buy them on Monday… that’s how good they are. Let’s quickly review some sell rules to help you get through today.
Has your stock undercut its proper buy point by 5%?
Is your stock closing below the 10-week / 50 day simple moving average?
Is your stock gapping down?
Is your stock selling off in high volume?
Is one of your stocks looking weak? Don’t know what to do? What you’re looking for is a preponderance of evidence to hold your stocks. What kind of evidence you ask….
Is your stock pulling back in low volume? This is constructive – the institutions aren’t selling.
Is your stock finding support at the 10-week / 50-day simple moving average? This too is a sign of strength. In uptrends a first or second gentle pullback to the 10-wk/50-day is a place to add to a position.
I hope this helps you navigate the markets today. I’ll have a longer note Monday after the dust settles.
Best Regards,
Tim
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Moreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies. You need to have your own, individual investment advice suitable for your personal situation.
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