KEEPING YOUR EYE ON THE PRIZE - December 30, 2009
Posted by Marlowe Cassetti in NVDA.trackback
Stocks ended the next-to-last day of 2009 little changed as welcome news on manufacturing helped offset a drop in commodities prices.
The market drew support Wednesday from a key economic indicator that signaled growth in the Midwest manufacturing industry for a third straight month. The Chicago Purchasing Managers Index rose to 60 in December from 56.1 in November. The report showed that production and new orders increased and employment improved. (commentary & photo courtesy of AP)
Needless to say, my friend Jack is ecstatic about my “tip” of buying NVDA. It has done quite well since yesterday morning’s market opening and since I too bought it I’m pleased as well. As I have stated in previous blogs, you have to operate with your long-term goals as your objective concern. A two day gain in a stock isn’t what it is all about. From what he has told me, but Jack has taken a bath in some of his stock ventures. He really doesn’t have a systematic trading plan with a sound methodology. He is too focused on “action”, the buying and selling. He calls it “juice”. It is like the excitement folks get at the race track. I’ve discussed this with him and he recognizes all this, but he craves the juice. I, on the other hand, try to be indifferent to the gains and the losses as long as I know that it is leading me on the right path. To me it is all about .. keeping your eye on the prize.
Recently I’ve been looking at the problem of too many choices. Here is the situation…in March of this year RSI generated a boat load of picks, a virtual deluge. Way more than one could handle within the hypothetical portfolio. The Turtle Trading way is to spread the buys over the correlation spectrum to maintain some semblance of diversification. Easy to say, but hard to model.
RSI had no new picks today.
Tomorrow is New Year’s Eve and the stock market will be open all day .. no abbreviated session. This is the last trading day of the year and it should be a yawner. I won’t publish a blog tomorrow night, but there will be a posting sometime before the market opening on Monday. I hope to have a year end RSI wrap-up that summarizes its hypothetical holdings.
Until then, have a very Happy & Prosperous New Year. Let’s make 2010 the best year of our life.
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