02/03/06
The market continued with weakness today that capped off a rough week across the
board. Each major index sold off over 1% on the week and while we never enjoy
weakness there are hints within this draw that give us confidence going
forward.
The selling was not concentrated to a specific area and normal areas of defense
such as oils and metals were also taken down giving us the idea this is broad
profit taking rather than underlying problems.
In times like this it is very important to remain patient. Often, stocks that
were once favorites are taken behind the wood shed for some serious pain. It is
natural to feel drawn to these once high flyers, but one can not commit capital
simply because a stock has gone down. We always must remember that dips, as
with good runs, often go further than one believes they should.
We did nothing more than research and minimal portfolio shifting this week at
Shark HQ, as we were already positioned for the weakness. Should you still hold
too many stocks, it isn’t too late to take some off the table as you can always
buy them back.
Rest up this weekend and be ready for more excitement on Monday.
Have a good evening.
RevShark