Get on the Buy Side
As you may know, I have been buying into the recent weakness. Of course, that's what I usually do. I buy weakness and sell strength and that's pretty much it. Nothing tough about it. The key is knowing when to add to positions and making sure that you have ample dry powder when you want to do so. People who maintain 100% invested positions long or short are nuts in my book. If you are completely committed, how do you take advantage of a surprise dip? I guess you just don't.
So I added to my Dow positions (at Rydex) Tuesday with the Dow Industrials at 12,640. Sure, it went considerably lower, to the 12,522 level, but look at it now. I also wrote puts on the Market Vectors Gold Miners ETF (GDX) (September $36 puts) for the first time in many months. Why? Because the PHLX Gold/Silver Sector (^XAU) and GDX were near the lows of the year -- no other reason. One day later, those puts have given up about 30% of their value. At Rydex, I added to my positions in the Precious Metals Fund. For the moment, I am glad I did....374 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.
