A Preemptive, and Timeless, Portfolio Protection Strategy
Investors constantly focus on the event instead of the opportunity that the event represents. Being retrospective instead of hindsightful helps us learn from our experiences. The length, depth, and scope of the financial crisis correction were unknowns in mid-2007. The parameters of the recent advance were just as much of a mystery--- in April.
Stocks Hit All Time Highs --- and Your Action Plan Is?
There is no real need for rocket science in investing --- no correlations, standard deviations, coefficients, Alphas, Betas, or Zetas are required. Similarly, passively managed, index derivatives are just a lazy man's way of reinforcing the myth that active management is ineffective.
At the beginning of this week I warned readers that the market was extremely overbought and that a top could be forming. While it is still unclear whether a major top has formed, it is without question that we saw a major correction on Wednesday as yields on Italian debt caused margin requirement adjustments at the London Clearing House.
Always, every time and without exception, the general media has predicted the end of the financial world, financial experts have pointed out the remarkable differences from the last correction, and investors everywhere have been encouraged to take their losses and sit on cash or gold until the smoke clears. Every time, the short sighted fear mongers have been wrong.
Making A Volatile Stock Market Your Very Best Friend
Call it foresight, or hindsight if you want to be argumentative, but a long-term view of the investment process eliminates the guesswork and points pretty clearly toward a trading mentality that keys on the very natural volatility of the hundreds of investment grade value stocks out there for your portfolio building attention.
The GBP/USD is rallying this morning and has reached the 1.6594 high. Intraday bias remains on the upside, as long as the 1.6110 minor support line is not broken. On the upside, the currency pair has already previously broken the 1.6545 resistance and now is looking to target the 1.6745 major resistance line.
Early Market Bounce, Will Traders Hold Stocks On A Friday?
GBP/USD went on an upside run to the 1.6140 high this morning, but now is back to the 1.6000 level. Intraday bias remains on the downside, as long as the 1.6440 minor resistance line is not broken. On the upside, if the 1.6440 minor resistance line is broken it will change the bearish bias to bullish sentiment and target the 1.6545 major resistance line.
GBP/USD is trading slightly to the upside, aiming to break above the 1.6300 level. Intraday bias remains on the downside, as long as the 1.6515 minor resistance line is not broken. On the upside, if the 1.6304 high is broken it will provide the currency pair with slight momentum to target the 1.6515 minor resistance line.