Stocks Get Smacked On Lackluster Economic Data

Stocks Get Smacked On Lackluster Economic Data

Technically, the fact that both the Dow Jones Industrial Average and the S&P 500 Index continue falling after closing below their respective 200-day moving average (DMA) lines earlier this week suggests the market may retest its recent lows. Looking forward, the 50 DMA line may act as stubborn resistance and this month’s lows should act as support. Since the June 15, 2010 follow-through day (FTD), this column has steadily noted the importance of remaining very selective and disciplined because all of the major averages are still trading below their downward sloping 50-day moving average (DMA) lines. This week’s sell-off simply confirms that view. Trade accordingly.

Timeless Wall Street Advice: Unload losers, Ride winners
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Timeless Wall Street Advice: Unload losers, Ride winners

Buy me 10,000- or whatever. If it goes up 1 point, buy more. If it goes up another point, call me. If it goes down 2 points, sell it. This sane, simple advice- unload losers, ride winners- became a source of enduring mystery for me: Why didn’t more investors embrace it? And why did so many…do just the opposite