Update: S&P 500 at new highs. Buying the dips trimming the rips going forward.
S&P 500 holding the 20 day moving average today. Fiscal cliff news is dragging on the market but this just looks like profit taking to me as this has been an orderly sell-off, so far.
Our past articles are working for you had you paid attention and been a loyal follower to WSSS.com. Will send alerts out when the time is appropriate to add to stocks.
I am with you on the down days too. Market hit the portfolio hard today but not too bad. The rest of our stocks are only down around 2% or less suggesting that the breadth of this market is still strong and stocks are not capitulating on this supposedly “dire news”. This is just the excuse we needed to buy on the pullback; “fiscal cliff issues won’t be resolved in time which could tip us back into another recession.” This looks like a healthy pullback at the moment.
Here is a 1-minute chart of the S&P 500 below. We had to hold the 50 % retracement line and we did coincidentally right as I write this. Let’s hope Washington gets its act together next week and the 20 day moving average holds. Also, I will not be taking any action today.
Back down to the 50 % ret. 5 mins later. Let’s see if this holds.
S&P 500 on close: 3:00. How convenient, we rallied off that little yellow line again. Too easy.
