The Welcome Relief of Green Screens
Submitted by dfabian on Wed, 07/16/2008 - 11:48pm
As I looked at my trading screen today I saw a lot of green. Green screens, of course, that indicate a market that's finally starting to trade higher.
To this I say -- it's about time.
After so many down days during the past few weeks, the welcome relief of green screens indicates that not all is lost on Wall Street. The sector showing one of the biggest spikes higher today is financials, which is particularly encouraging after a few weeks of difficult headlines about bank failures and the pending demise of lenders Fannie Mae and Freddie Mac.
Alas, finally some light at the end of the tunnel.
As you can see by the chart above of the S&P 500 Index, stocks have been kicked around now for some time. And while I think the fundamentals in the economy and in the market will keep stocks lower for a while longer, I do anticipate at least a snapback rally here such as we've seen today.
How long this rally will last is anyone's guess, but what investors can do to take advantage of the situation is play this market with differing strategies for the short term and the long term.
Over the long term, I think it makes sense to have a high-cash position. However, over the shorter term (weeks and months) it makes sense to try and trade into these snapback rallies.
One way to take advantage of the situation in this market is via my ETF Trader advisory service. During the past few weeks my ETF Trader service banked big percentage gains in two leveraged, short exchange-traded funds (ETFs). This week, we took a long position in an emerging-market economy that is starting to make a big comeback.
Folks, let's face it. It's not easy making green these days, but if you are smart about your purchases, you can capitalize on the changing tides in this stormy market.
Fabian Wealth Strategies is a registered investment advisory firm specializing in Exchange Traded Funds. Our philosophy is grounded in transparency, risk management and low cost. We are now accepting new clients for both income and growth portfolios. We want to help you safely grow your investment portfolio and secure your financial future.
Fabian Wealth Strategies offers asset management, financial consulting and investor education on a fee-only basis. To learn more about how Fabian Wealth Strategies an help you, call 800-391-1118 or e-mail .
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