Wednesday, April 04, 2012

Subscriber Alert - Ready, Aim


Today the S&P (1398) closed right on the lower boundary of its short term up trend, while the DJIA (13074) closed below its comparable level (13198). Since our VIG holding is a trading position, our time and distance discipline is not operative. So if the S&P closes tomorrow below the lower boundary of its short term uptrend, VIG will be Sold.

This doesn’t mean that it is time to run for the hills. Equities are still in an intermediate term up trend (11384-16383, 1195-1762); and there are still plenty of support levels near by. They include: (1) the former resistance now support levels [12919, 1372], (2) their 200 day moving averages [12104, 1269], (3) the neckline of the reverse head and shoulders pattern [12287, 1266] and (4) the old resistance/support level [11741, 1230].

Gold closed on the lower boundary of its short term trading range. Any follow through to the downside and our Portfolios will go from 4-5% GLD to 2-3%.

Steve Cook received his education in investments from Harvard, where he earned an MBA, New York University, where he did post graduate work in economics and financial analysis and the CFA Institute, where he earned the Chartered Financial Analysts designation in 1973. His 40 years of investment experience includes institutional portfolio management at Scudder, Stevens and Clark and Bear Stearns. Steve's goal at Strategic Stock Investments is to help other investors build wealth and benefit from the investing lessons he learned the hard way.