What Not to Be In Right Now

09/10/2013 6:00 am EST

Focus: STOCKS

Harry Boxer

Author, The Technical Trader

Harry Boxer, author of The Technical Trader, discusses which areas he's not interested in at the moment, given the time of year and the delicate nature of today's markets.

SPEAKER 1:  My guest today is Harry Boxer.  Hi Harry and thank you for being with us.

HARRY:  My pleasure, thank you.

SPEAKER 1:  So what are you seeing these days in terms of trading that you really wouldn’t want to be in?  What kind of company’s?

HARRY:  Well, I think first of all, the market itself is showing me signs of rampant speculation in, like, Chinese and biotech stocks and the junior biotech’s.  They say when the garbage fly’s, it’s time to be careful.

SPEAKER 1:  Exactly.

HARRY:  And so we’re starting to see that, and, as a result, notice the market’s been down the last several sessions, so I’m wondering whether this is going to lead to something worse and it’s also that time frame of year, August, September, October, where we get our usual bear phase is when we get them, so this is a time to be very careful.  Some of the groups that I think that were doing wonderful that are starting to show signs of weakness, like the Homebuilders, have begun to roll over a little bit.  There’s other groups, too, that weaken, but then I’m seeing defensive stocks like gold, silver, some of the metal stocks, and natural resource stock; Cole, for example, and some of these stocks have had horrendous downtrends, basis down, and now are beginning to emerge, so that is another clue that tells me maybe this market is going into more of a defensive mode and as a result, we may see some selling that could bring the market down a bit.

SPEAKER 1:  Interesting, but as always, there are always opportunities even when the market’s coming down.

HARRY:  Every day.  Amazing how my subscribers tell me, “It’s amazing.  The market was down today and all we did was buy long; we made money all day”.

SPEAKER 1:  Yeah, isn’t that great?

HARRY:  Yeah, it is.

SPEAKER 1:  I love it.  Thank you, Harry.

HARRY:  My pleasure.

SPEAKER 1:  And thanks for being with us at the MoneyShow.com Video Network.

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