18 May 2008

The Market

The Market ended one of its strongest weeks in a year. All the averages were up and individual stocks outperformed the major averages...if you were in the right sectors. Remember, to outperform the market in general, you must be in strong relative strength sectors, and have stocks or ETF's that are also outperforming their peers. That means sectors like oil, oil service, machinery, and chemicals just to name a few. Then you need to pick stocks and Etf's in those sectors that are also outperforming. Do that, and your odds are better than average you will have a portfolio that will outperform the market.

But remember, even if everything looks perfect, the stock can go south. If it does, have your stop loss and get out of it before a small loss becomes a large loss.

Let your winners run-----cut your losses short.

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