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Tuesday, January 12, 2010

Range is the name of the game

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Dear Investor,

Its difficult to find compelling investing opportunities. The upside trend is intact but the pressure to move it higher is lacking. We will have to wait until some significant development takes place. Many of the upside breakouts are just failing to move forward. The stocks are returning back to there mean value.

Year 2010 is less likely to be straight up or straight down. It will consolidates by going down a bit and then rising a bit. Our skill will be to pick at the bottom and sell at the top. That seams to be the best bet to make money in this market. Right now the market breakout is getting shaky. After the market moved higher it is getting sold no matter what the news is.

Well, certainly not a good time to be fully invested. Cash position should be built for upcoming opportunity that will soon arrive. May be another 3-4 weeks we would be able to take our positions.

Thanks
Anil
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