S&P 500 continue to hold or close positions
2023.01.25 03:38
S&P 500 continue to hold or close positions
Budrigannews.com – On Tuesday morning, the lost a tenth of a percentage point before making up almost all of those initial losses and ending the session in a minor downtrend.
Since stocks quickly fall back from unsustainable levels, the more plausible Monday’s 4k breakout becomes. The market passed the initial test of support early Tuesday with flying colors.
Every sustained breakout begins with those first two days, even if a breakout does not occur for one or two days. The less-bad-than-feared recovery from the October lows is continuing, as headlines remain benign.
Things appear to be going well at this point, but as always, anything could change.
Greedy when others are afraid, and anxious when others are greedy. We must exercise caution now that the market is at multi-month highs because that straightforward strategy rarely fails.
The critical level of 4k has remained stable thus far. However, as I previously stated, this market is more choppy and erratic than either up or down. This indicates that, despite the fact that the upward trend continues, we should anticipate a lot of back and forth.
Because we don’t make money until we sell our winners, it makes sense at this point to lock in some of our nice profits. But at the same time, the market is still doing well, so holding onto some of our positions is also worth it.
No matter what comes next, we will be in good shape with one foot in and one foot out of the market. We pull the plug at our recently raised trailing stops if the market is rejected 4k once more.
On the other hand, if the breakout continues, we gain by holding onto what we still own, and then we accelerate by repurchasing what we sold.
The extremely desirable “no lose” position is this one. We are here because we bought when everyone else was busy predicting that the market would collapse.
