My Quick Take on the Stock Market
- Posted by Joe Fahmy
- on January 14th, 2013
1) The price action is very strong. The indices (especially the Small and MidCap) don’t want to give anything back.
2) Short-term, many stocks are extended from proper buy points. Keep in mind that I’m a trader and entry point is EVERYTHING to me. If you have a good entry, you can sit through normal pullbacks. If you are chasing up here, you increase your probabilities of getting shaken out.
3) Many people I know are LOADED up, on margin, bullish, etc. I don’t blame them because stocks are acting well, but it is a little bit worrisome.
4) If we do get a pullback, I don’t expect it to be big…however, it wouldn’t be horrible to see some form of a pullback in order to provide better entries and “shakeout” some excess complacency.
I locked in some gains over the past few trading days. Many of the stocks I mentioned in recent videos have performed very well, but I prefer to take profits into strength instead of weakness. Again, keep in mind I’m a trader and don’t follow my advice (or anyone else’s). Have your own plan and know your timeframe. If I’m wrong and stocks keep going higher, I don’t care because I’ve had a strong run over the past few weeks and I still have exposure on the long side…just not as aggressive as in recent weeks. I’m not calling for a correction, I simply prefer to play a little defense and wait for better entries. Good luck trading!
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
Tickers: Stock Market Commentary
Joseph Fahmy is the managing director at Zor Capital, LLC, a New York based investment management firm. Joe has over 17 years of trading experience...More »