Lately,the market seems to be having a lot of activity, but little movement in total value of our accounts. When one sector goes up, another sector goes down, resulting a wash. Lately, material, gold and utility stocks have been falling, while oil stock are rising. This is just the opposite of what was occurring a few months ago.
Based on this activity, I will start taking trading positions in some of our core equity holdings. That way when the stock rotates upward, I can take some profits and repurchase the trading position when the stock falls. However, I will only trade shares in excess of the core position amount. That way when the market resumes an upward trend, the core positions will all benefit from the market advancing.
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This is not financial advice. Please consult a professional advisor.
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