Backing Off Individual Names
We've had the Great Depression and the Great Recession, so how about the Great Liquidation? It feels as though someone or something is liquidating plenty this week and moving to cash, which is why we are still seeing a somewhat lethargic CBOE Volatility Index (VIX).
When I see this type of action, I tend to steer clear of individual stocks from a chart standpoint, instead focusing on the SPDR S&P 500 (SPY), iShares Russell 2000 (IWM) and the VIX. Then, once I have a thesis in place on market direction, I may head back to individual names, grabbing lower quantities of higher-beta positions for a SPY or IWM representation....454 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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