Waiting for Godot (or a market uptrend)*
The market was still in an uptrend at the end of March according to IBD and I kept in the market with a couple of trades (BWLD – Buffalo Wild Wings and VMW – VMware, Inc.) although things were starting to look a little wobbly.
I kept to my plan to follow the trend (as dictacted by IBD’s Market Pulse).
Unfortunately, I got tossed out of my BWLD quite ignominiously on 20 March only to realise I had screwed up by lowering my stop price after my purchase. By mistakenly moving the stop down to $146.76 after buying based on $149.37, I inadvertently moved my risk up from 1% of my account to 1.7%. A bad mistake, although not critical at this stage.
I was happy to see my VMW position held even though it lost ground and swooped perilously close to my stop (I believe the price even hit my stop but bounced back up before my position could be sold).
Then, it seemed we were back, when IBD announced was in an uptrend again on Wednesday 2 April. I moved back into a XQQ.TO position (following IBDs ETF strategy) and also bought into a position of DAL – Delta Air Lines, Inc.
Then, bam, the next Monda,y 7 April, back to market in correction and first VMW falls with 1% loss and the next day DAL also hits its stop. I bail on XQQ.TO.
It’s now 27 April and the market has been inching up and then toppling over, inching up then toppling over. I might have been able to get into some day positions and make some money, but I am not there yet. I am holding fast with IBD and taking their advice that the market is in correction and therefore I should be sitting on my hands and not trading.
It’s tough though. Here I am struggling to find what stocks I might want to take a position in and then finding the courage to actually act on the buy and then my (IBD’s) rules tell me to sit on the sidelines.
Supposedly, history has shown that the market stays in correction for an average of something like 12 days. We’re beyond that now, I believe, so hopefully this will start moving up again soon and I can start looking at entering some new positions.
* Waiting for Godot – An absurdist play by Samuel Beckett, in which two characters, Vladimir and Estragon, wait endlessly and in vain for the arrival of someone named Godot.