Quarters End: Buy ‘Em, Sell ‘Em Or Hold ‘Em ?

Buy Hold And Sell Signpost Representing Stocks Strategy

If you came into this year all cash and just bought the $SPX, you’re up about 10%.  An excellent year, considering your return on anything else was dirt. Thing is, not many did that, so they are not up 10% over these past ninety days.  The great migration from bonds to stocks is still up for debate, but there aren’t any sellers in the house and if things edge higher, more buyers will appear as buying always begets more buying, same for the sell side.

So if you are having a good year so far what do you do? I ask this from an institutional perspective (mutual funds, pension funds, etc.), because retail still isn’t in this market.  The quarter ends on Friday, so do you book gains and go home, just stay invested because you think the tape still goes higher (choppy tape then next week), or do you go on a buying frenzy because you missed the move and need to show that you’re long? ?  I think this situation will make next week an interesting week indeed.

My bet is on the bulls because they cant seem to knock this tape down, even a small island the size of Green Bay Wisconsin couldn’t really shake things up last week. I hear the EU will be running the NCAA bracket next year and I have Cyprus, Italy, Spain and Greece in the Final Four as my early picks. Still the third inning over there, but our market doesn’t care, as the “good house in a bad neighborhood” theory has kicked in. Buying American stocks is all the rage.

I still think the euro ( $EUR?USD) is oversold and is overdue for a rally. I also think the dollar is overbought.

$AAPL put in a solid week and few good things happened in the name.

1- It took out the daily downtrend that has been in place since it was at the 700 level.

2- It closed above it’s 50 day moving average for the first time since the Age of Pericles and..

3- It managed to close above the high that it put in on Tuesday.

Volume was OK, not great in $AAPL, but since when does volume matter on anything anymore? A move to 480-500 is not out of the question based on the chart. Good luck fan boys.

The financials continue to hang around constructively and came within pennies of a successful test of its 20 day moving average.

Good luck next week.

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