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The Chartman

Caution Isn't Always a Virtue in Investing

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When you’re dealing with the market on a regular basis, the best attitude to take is “cautious.”  Of course, this stance looks foolish when the bull roars, and that’s exactly how I feel after a very solid week for the Dow.

Does that change anything for me?  No, but in the absence of any significant down days it pays to be positive.

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The hot topic in both business and political circles these days is ObamaCare.  Drama aside, I find the action of the insurance stocks interesting.  As an example, I thought after Obama’s Thursday press conference that the stocks would sink.  Instead, they rose.  That tells me maybe companies like Wellpoint (NYSE:WLP) are the place to be.

Quite often when you trade based on the charts, you get an immediate win.  Usually, though, patience is required and that’s exactly where I am with eBay (NASDAQ:EBAY).  I think it goes higher, and there’s still time to join me if you agree.

Back next week to see if the Bulls can maintain focus.

What do you think?

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