8/16/07

Comment from a reader

The market is headed for 12,500 and maybe 12,000 after breaking the neckline of a head and shoulders top. I would like to read opposing opinions.

My view is that you do not try to set levels in your mind that can be broken. In other words, do not try to catch a falling knife. My point is one should focus on trends, not levels.

Another thought. It is important to have a buying strategy. Investors sometime forget to have a selling or hedging strategy. It is just as important to protect your capital.

More on http://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977

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