Years ago, I watched this comical movie about a Coke bottle tossed from an airplane over some place in Africa. The bottle landed near a native individual who believed it had been tossed to him by a god up in heaven. Try as he might, he couldn’t make sense of anything having to do with that stupid Coke bottle; concluding that the god’s must be crazy.
I pretty much feel the same way about the stock market. Just about when I thought it just might be beginning to set-up for a really good low-risk market entry opportunity… the first in 6 months, it starts acting all crazy. Well, I did just as I have said I might do on Monday. I felt a little light on some positions I hold, so I squared most of them up, adding some shares, and expending about 10% of my available cash. That’s all well and good. Those shares, along with all of the others I hold are benefitting from the current market situation.
Consider this: The market rocketed up last Friday, popped on the open Monday morning, but closed lower by the end of the day; closed slightly lower on Tuesday, and as I watch today, it’s higher, but basically, popped, and is sliding sideways again nearly all the day. What will the last 1/2 hour bring? A sell-off? A further buying surge into the close… nothing? I don’t know, and I don’t care.
Traders have to contend with market conditions from one day to the next, and look for trending opportunities that they can play. As an investor, I only need to patiently await a truly notable low-risk market entry opportunity to deploy cash into, and I have not seen the evidences that this was one of those. So, I added to some light positions with about 10% of my available cash, and I’ll continue to wait for a truly notable opportunity. I think I’ll see it when it actually happens. Here’s to your investment success!
Harold F Crowell