Rushing to the Sidelines

 | Sep 09, 2011 | 10:34 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


We are under severe pressure in the early going and the faint aroma of fear is in the air as we grapple with more chaos in Europe. 

Greece is falling apart again, an important member of the European Central Bank has resigned, several banks are in free-fall or halted and no one really seems to have a plan for dealing with these issues. It is a classic case of too much uncertainty, and that is sending folks to the sidelines.

We do have a little bit of dip buying, but I suspect that it is ultra-short term flippers at work, which means we can reverse back down quickly. There is a high level of nervousness, and any retest of the early lows will trigger a chunk of sell stops.

My strategy is to sit mainly in cash and try to pick off some fast trades.  Although I have a shopping list of stocks I'm interested in longer term, I don't have any inclination to buy when the market is under this sort of pressure. I prefer to buy stocks when they are going up, not down. I don't care about buying the bottom; I'm far more concerned about buying the trend.

All I've done so far this morning is buy little gold stock Extorre Gold Mines (XG). If we crack the early lows and trigger another spike down, I'll be looking for some bounce plays, but I'm in no rush to put my capital at risk.

Columnist Conversations

TSLA is trading $256.11, down small with IV30™ down 3.6%. TSLA stock is up 1,068% in three-years and i...
q's didnt bite on the bull move, the russell 2k was doggie and the close was suspect. and i have the short ter...
Besides the fact the chart looks great, someone came in with the heavy artillery today in the Oct 22 calls - o...
S&P 500 right at all time closing high as we head towards thee final 45 minutes of trading. Interestingly...



Columnist Tweets


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.