Wait for Stocks to Find Solid Ground
Mea culpa: I completely missed the “turn” in the market I called for last Friday. Actually, it happened Wednesday…a few hundred points lower than I anticipated!
And while the market did recover, can it sustain yet another V bounce? I’m betting not, and as the market has essentially moved sideways since December, I’m mostly in cash.
The two charts below pretty much sum up how I currently feel: I’m waiting for stocks to show some strength before I buy. Microsoft (NASDAQ:MSFT) is a good case. I recommended selling in November, and now I’d wait for the drought to end before re-buying.
Google (NASDAQ:GOOG) is pretty much the same, although the stock has stalled for over a year. I love the company but want to see the momentum return before I buy again.
Back next week to see if the V turns upside-down.