It’s weeks like this that always make me think the NYSE should take a summer vacation. Yes, it sold off a bit, but only a bit, as we’ve been pretty much flat since the breakout of Aug. 1.
This sideways action can’t go on forever, but for now, I wouldn’t be looking to do too much.
Speaking of “too much,” the action in Tesla Motors (TSLA) this year is nuts. Now, I won’t argue the valuation one way or the other, but focus on a simple fact: the stock has gone parabolic this year. When that happens – and if I’m lucky enough to still own it – I sell at least some of my holdings and be thankful for the windfall.
Amazon.com (AMZN) was in the news this week due to Jeff Bezos buying the Washington Post's publishing assets. That had me looking at AMZN itself. I like the stock, but would wait for the next breakout before buying.
Back next week to see if the sideways action has abated.
Gary B. Smith joined FOX News Channel in 1999 and is currently a regular commentator on "Bulls & Bears," including his own segment called, "The Chartman."