April 16, 2010 - 9:58pm
The market blew up today on the Goldman Sachs news. How did you handle the news and what did you decide to do? I sat back and watched the chaos. I was so relieved to see the market do something other than go up again because we need a pullback for sure. Pullbacks are healthy for the long run in the market. You want a base of support below the current price level to keep the market building a solid foundation.
However, since I am sitting at about 75% cash I did not trade anything. Instead I managed (aka: hedged) the small amount of equity exposure I hold in my IRA. (I only have 3 stocks in my IRA right now: Verizon, Pfizer and Exxon.) The stocks I currently own in my IRA are investment type holds. 3 - 5 year outlook. If they are effected by a downturn or pullback I will buy more.
So lets see what happens next week. Earnings season is still on. The carry trade [link] is still on and the rising channel in the S&P 500 is still in tact. Should be interesting. I may actually buy something by the weeks end.
-S