Stocks Have Room to Run Despite Cries of ‘Overbought’
Last week I noted the market was going sideways. That was – I thought – a good thing, as it was getting ready to go higher.
And higher it did, despite “bearish” news on Fed tapering. (I would have thought it’d go LOWER on the news, but maybe that’s why I’m not in the fundamental game.) Now you’ll hear more and more cries of “OVERBOUGHT” and maybe we are. But, I think the market has more gains in store.
In the past few weeks, I counseled patience in your trading, and tried to demonstrate that with a few of my own trades. Facebook (NASDAQ: FB) worked pretty well from the start, but I had grit my teeth for a while with eBay (NASDAQ:EBAY).
My initial comments are to the left. My thankfulness to the right.
The lesson, I guess, is if you’ve done your homework, then stick to your guns unless your stop is hit. Back next week to see if this “Santa rally” continues.