It is always prudent to take a step back, objectively assess, and tweak your portfolio—especially after a strong and sustained run-up, and that’s exactly what MoneyShow’s Tom Aspray does now.
The overseas markets set the tone for the opening of the US equity markets shattering the calm, and basically optimistic view, from last Friday’s close. Of course, the horrible events in Boston created more fear in the market as the selling increased into the market’s close.
The dramatic losses in gold and silver last week were indeed A Triple Alert For Stocks as the US equity markets were indeed vulnerable. Monday’s decline, in my opinion, is likely part of a top-building process, and I would not expect prices to accelerate to the downside over the near term.
The S&P futures are showing nice gains in early trading and if the major averages can close higher Tuesday, we could see a pretty strong rebound in the S&P and Dow. On a lower close, we could get another day or more of selling before we get a two-three day rally. The iShares Dow Jones Transportation (IYT) and iShares Russell 2000 Index (IWM) were especially weak Monday, confirming the bearish setups I discussed last Thursday.
Though quite a few of the positions in the Charts in Play portfolio have been either sold or stopped out , now is the time to be managing your existing positions. In today’s column, I wanted to update the portfolio and focus on two recommendations that have worked out as I had expected and two that did not.
Chart Analysis: Automatic Data Processing (ADP) hit a low $54.02 last November, and I recommended it on November 27, which was filled the following day at $55.44.
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