Technically Speaking: FOMO Overrides FOLM

 

“Thus the conclusion is that in the latter part of this week we should reach an overbought condition.

The number of stocks making new highs on the NYSE increased. It’s nothing to write home about but at least it increased.

Finally, I would note that while anecdotally sentiment seems to have turned bullish, it is not yet evident in the indicators. The put/call ratio was 100% on Friday and while that may have been “weekend” related, long-time readers will know I prefer not to rationalize an indicator.”

 

We remain cautious for now until the investing risk/reward scenario improves enough to warrant additional equity exposure.

Could we miss some of the rally before that occurs? Sure.

We have no problem with that. Opportunities to take on additional market risk come along about as often as a taxi cab in New York City. However, for us, the “fear of missing out” is much less important than the “fear of losing money.” Spending our time working to recoup losses is a process we prefer to avoid.

“When it comes to investing it is important to remember that no investment strategy works all the time, but having some strategy to manage risk and minimize loss is better than no strategy at all.”

 

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