Okay, you wanted some down-side market action? You got it! So, where do things stand?
The Dow and the S&P 500 both closed below their respective 200-day moving averages. That marks a sell signal for some, and I saw, in the after-market, further selling before 5:00 pm. All of my technicals are beginning to move into place. They need at least one more down day before they will commence to signaling to me that market risk is being sufficiently wrung out, that we could consider becoming buyers of our favorite stocks.
So, let’s hope and pray for more down-side price action… it sounds perverse, I know, but that’s what we need to be able to step up and begin to be a part of the underlying price support of the market. While traders, and those concerned for the shrinking of the size of their nest eggs, are selling to try to stem the bleeding they see in their accounts, we need to begin to put our shopping lists together of those safest-dividend growers that will add yet more portfolio dividend income to us.
If I am going to be able to calculate significant portfolio dividend income growth, year-over-year, as I have able to report in recent months, I’m going to have to add a considerable number of new shares to our accounts, so that they can begin to start generating income for us. It’s this harnessing of still further compounding to our strategy that speeds us forward ever-faster toward our goal. It’s a beautiful thing.
So, let me conduct my research and compile my list of the very best looking candidates. I intend to add shares to each of my present holdings, and possibly include shares of at least one or two more fine-looking specimens of safe-dividend growing stocks, so as to better balance and round-out our portfolio.
I wrote the above content yesterday afternoon… now, this morning, the pre-openers are up about 1% here near 8:30 am EST. Was it the reversal to the upside? Is this the time to buy? Let’s see what transpires, a truly big volume 1+% upside day could well mark the bottom, but I am not currently of such an opinion, and I still believe there’s more downside to go yet… so, I am being cautiously hopeful for more selling yet. So, let’s see what today brings. If it will be just more of the same, then we can probably expect more volatility, and still more selling to come… I truly do hope so!
Here’s to your successful investing!
Harold F Crowell