Market Holding Steady

The stock market continues to hold up after some good recent gains. The best we should hope for here is that the stock market consolidates those gains before another push up. The Dow, NASDAQ and S&P are all holding above their 50 day moving averages.

The temptation at this stage is to buy more positions, however I hesitate here until we see the markets next move. My suggestion would be to stay with the new positions recently purchased and hopefully in the near future the stops can be raised such that less money is at risk or maybe even break even. The key point is always to protect the capital we have to invest and it would premature to take on more positions if capital is still at risk on existing positions. We are in earnings season where lots of companies are issuing their results, lets see how things develop since there will be big moves up and down in individual companies as these earnings are announced.

If we can get through this with the indexes still intact then the opportunity will come to start adding to existing positions as well as take on new positions. Be patient and lets see how thing play out at this critical juncture.