The Selloff Continues; SOLD – iShares MSCI Chile Investable Mkt Idx (ECH) & Utilities Select Sector SPDR (XLU) January 22, 2010
Posted by Marlowe Cassetti in ECH, XLU.trackback
Stocks suffered their fourth sharp drop in five trading days as investors caved to growing anxiety about President Barack Obama’s plans to restrict big banks and earnings reports that just aren’t good enough.
The Dow Jones industrial average dropped 217 points Friday, having lost 552 points, or 5.2 percent, over the past three days. Over the past five trading days, the Dow has fallen 537 points, having gained 115 points on Tuesday.
The drop gave the Dow its worst week since the index hit a 12-year low in March. All the major indicators fell more than 2 percent.(commentary & photo courtesy of AP)
Broken record, like yesterday, is a report of stop losses for the following:
- ECH –3.7%
- XLU +1.6%
As you can see it wasn’t all losses. Has my portfolio suffered? Yes. Am I beginning to panic? Absolutely not! This is all part of the process. The methodology it to place the trades and let the chips fall where they may. The stop loss parameters are there to keep losses manageable and avoid large losses. There is a positive side to all the selling is that my portfolio has now build up a nice position in cash that will be available for buying at lower prices.
There were no RSI buy recommendations today. Catch you tomorrow.
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