Mark Fichera currently uses skills learned over the past 40 years to provide investment ideas based primarily on technical analysis. He is particularly well versed in point and figure charting, trend line charts, Japanese candlestick complimented by various technical indicators and...
Published Date: April 30, 2007
Mark Fichera
Good morning on this last day of April!!!! And what an April it has been!! The DOW Jones Industrial Average has gained almost 800 points (over 1000 since the March 13th bottom), and the level of bullishness has increased, but not enough to suggest we are at the TOP, TOP!!!! But having said that, we are overbought and the TV “Experts" appear to be a little bit too bullish at the present time.
Market momentum weakened at last week's end as we continued to hit new all time highs on the DOW. Market breadth (advancing stocks minus declining stocks on the NYSE) actually was negative Thursday and Friday as the DOW 30 hit marginal new peaks. The DOW Utility Average also declined both days after putting on its own spectacular display since mid-March. This April was the best in its class since April of 1999 when the DOW gained approximately 1000 points. Trees don't grow to the sky!!! Maybe it's time to raise a little cash and take a more cautious stance.
Make a list of the stocks you want to own either as long term investments or use as trading vehicles. Identify your buy points and take advantage of those opportunities. Try to be a little patient and more disciplined at this time and wait for better entry levels.
Just a short note, today April 30th prior to entering the always interesting month of May, I am reminded of an interesting quote from Ernest Hemingway; “In order to be a great writer (or “investor") a person must have a built-in shockproof crap detector.”
Till next time, I remain sincerely yours,
Mark Fichera
The opinions and commentary provided by the advisors in the My Automated Advisor Newsletter are the opinion of those advisors and not of My Automated Advisor.
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