Monday, July 04, 2016

Taking Profits While Waiting for a Correction

"Don't look a gift horse in the mouth."  - old adage

I've been pleasantly surprised by the extremely fast recovery (4 trading days) from the Brexit correction.   I was expecting the downturn to take at least 3-4 weeks and maybe 3-4 months.  I was planning to buy some stocks at lower prices.  The downside was the execution of stock options a a lower price.

I missed the one day buying opportunity last week on Monday.

My plan now is to sell some of my trading positions into the rally.   Oil stocks, gold stocks and total market ETFs are showing good gains.   In addition, I will take some losses in biotechs that have fallen significantly since 2014.   I also will execute stock options at a faster rate, since my company stock hit a new 52 week high twice last week and is up over 30% from its 52 week low in September 2015.

However, I still do expect a market correction sooner than later.  So I am still ready to make some purchases if the market should decline.   My focus would be to take positions in large cap biotechs,  and financial stocks and increase my positions in dividend paying stocks and total market ETFs.

For more on Strategies and Plans, check back Mondays for a new segment.

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

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