Don't Be Afraid of Cash

 | Sep 30, 2011 | 10:49 AM EDT  | Comments
  • Comment
  • Print Print
  • Print

The dip-buyers hesitated at first to jump in, but they've inched in a bit now and have us off the early lows. I suspect that these aren't long-term buy-and-hold buyers this morning. Rather, they are looking for a quick flip and well retreat back into cash very quickly. Many things are oversold enough to produce some sort of bounce, but the overall picture is so poor, no one is going to feel any need to rush in and put capital to work.

Breadth has improved from early levels and is running a bit better than 2-to-1 negative. Gold is seeing a little bounce, but watch for any move to be quickly flipped. The bears have gained a lot of confidence lately, and they are going to be looking to short strength. The only fear the shorts have right now is another "Europe is saved' headline, but even that will be greeted with great skepticism.

In this environment you need to have either an extremely-short-term time frame for some quick trades or a very-long-term time frame with plenty of room to average in. For most people, a very high cash position is probably the way to go.

I'm dinking around with a few small trades, but until the action improves I'm not going to be putting much capital at risk.

Columnist Conversations

Impressive and very broad based rally as tone has changed in market since middle of last week. Airlines conti...
Conclusion TWTR is growing revenue faster than any other peer. TWTR has worse net income margins than any othe...
THE FIBOCALL SPX-cash: Sometimes the choices are easy and sometimes they are quite hard. The upper end of the...
I had recommended packaged food manufacturer ConAgra (CAG) back on Feb. 12, 2014, when the shares were trading...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

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.