Trickling Funds Back In and Selling Into the Rally

The current "unloved" bull market is causing me to have a Dr. Jekyll/Mr. Hyde attitude about the stock market.  Part of me wants to be in the market and take advantage of the upward trend since companies are positioned well to take advantage of an upturn  Part of me wants to take profits by selling into the rally since there are still a number of unresolved economic issues.

For now, I'm won't be deciding one way or the other and plan invest both ways.  

First, I will be purchasing stocks with upward trends in sectors I believe will do well.  The first sector I've chose is health care, with emphasis on small cap biotech stocks.  I have identified about 15 stocks,which I am slowly accumulating  The second area I'm investigating is the housing recovery, which includes sectors such as construction, building materials and consumer discretionary.  I am still researching this area and have not started buying.

Second, I am also selling certain stocks which I currently own, especially those near the high of a trading channel or having difficulty breaking to new highs.  These include my company stock options, some conservative stocks paying good dividends,  some speculative stocks that were bought on a dip, and a few stocks that I inherited from my parents.

At this point, I am cautiously optimistic and therefore, am comfortable with slightly increasing the amount of funds in equities.

For more on Strategies and Plans Ideas, check back every Monday  for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2013 Achievement Catalyst, LLC