Don’t Let This Market Keep You Down

April 14, 2008

Thank God, “the Bay” was firing yesterday and I got to see some great surf if even I did look like a donkey myself out there. Today I am going to go look for easier surf for me to handle as I realize I am over my head still. That is also how I feel about this market. I just recently started to find some nice charts…and….they are still not working. Today, SVR collapsed and I will sell almost all of my SVR (all but 25%). Included with that GEF, which I bought both of to help the luck, closing below the 50 DMA, this market is just not good to invest in. There is a stock that I love (one of only two right now) that had a bad Friday and did get excellent support today but it still finished lower. This all tells me that this is still not a market to go long. That “other” stock that I love is losing its max green BOP and this is just YET ANOTHER deterioration of a market that is moving on no volume.

I do not know about you but I will repeat: THIS IS THE FIRST SIX-MONTH PERIOD SINCE 1999 WHERE I HAVE NOT MADE MONEY. THE FIRST!! THIS STRATEGY OF FOCUSING ON THE LEADERS AND LAGGARDS IN EITHER A BULL OR BEAR MARKET IS AN EXCELLENT METHODOLOGY but in a LOW VOLUME and DRIFTLESS market, it is useless. Right now, that is the market we have.

I am down 5% since the November top, with my buddies ultra-aggressive account down 12% since then. This is new charter territory for me BUT do you think I am upset? HECK NO! I understand that this style (like all styles) come in and out. Right now we are out. When we are back in, we will be REALLY IN!

Aloha, don’t let this market get you down because that is the stock market’s job right now. To purge the excess.

Aloha and I will see you later on with a longer commentary. STAY POSITIVE. This too shall pass!

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