I don't feel comfortable waiting for something as slow as the 50dma. I think it's time to take the trades you see and keep them tight. The 100 and 50 are getting closer and closer. The time and price range between the 4% pull backs just got shorter. Even if we don't have a correction, choppy back and forth and consolidation is very possible especially now that three indices are showing the possibility of bearish patterns. But that's just my opinion.
Exactly. I only trade stocks that give me a decent dividend yield, I prefer on a monthly basis, so If I am on the wrong side of the trade I can wait and collect. I bought O yesterday at 41.33 and it is now at 42.17. There is resistance already at 42.53 and I think I will cash in tomorrow already, and park my money in some monthly paying funds like EHI or PTY. I'll wait for a pullback and try to buy later at a lower price, that's my strategy for now.
Possibly interesting that the $NYA has a lower low than August's than the SPY does, and the XLI has taken a bigger drubbing than the DIA, which actually looks more like the XLF. Certainly the Indexes and many of the Spiders are currently staying in descending channels, but I'll bet you already knew that. Thanks KLang