Lightened Up My Positions A Little
I used this morning's rallies in NUC, CS, SVM to lighten up my positions in those stocks.
It looks to me like we might have further downside for a period of time that I can't predict yet.
But I have more cash right now so when I feel the right time has come, I will be able to get into some beat down stocks at great prices.
Here is a possible scenario for Capstone:
I we could get a crossover and a double bottom, I think that could be the sign of the end of the downtrend. If Capstone bottoms at $1.28, then it's forward P/E would be around 3.1.
The hard thing to judge right now is when the markets will turn around. It's all about psychology and everyone was very bullish for a long time so it could take some time, maybe even a month or two to get everybody thinking the bull run is over.
Looking over the SVM charts, it doesn't look great right now. We're about 25% off the tops so I am sure some people's stop losses will be going off.
It's hard for me to pick a bottom here because the 200 day ma is so much lower than the 50 day. I guess we'll have to be waiting for a crossover in the macd with maybe a combination of a double bottom.
Now just for fun, here are some of my doodles on the Gold Chart:
Of course nobody can predict the future. I am just speculating what the possible bottoms could be using regular simple technical analysis. To see whether I am right or wrong, we will just have to see how things unfold!