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In case you aren”t already – If, Then… Market Timing

In case you aren”t already

By Rod David | May 16, 2014 - 12:16 pm

In case you aren”t already aware, the SEC is focusing on potential scams in the MJ stock sector. Certainly, it tarnishes any stock quoted in pennies, and reinforces my avoiding stocks that trade under a penny. But having heard from the SEC, they”re unlikely to issue such a blanket statement again in the near-term.

We must still be vigilant in protecting ourselves. This should reinforce basic portfolio strategies. Be conservative in the size of any purchase, diversify, research. Don”t underestimate the value in using expanding volume to confirm any relevant chart move. Even then, there is no escaping the immediate ripple effect on sector stocks — there is only the potential for picking up cheaper shares of legitimate industry participants.

I am no less confident about the sector. I am no less confident in the sector”s potential to outperform during this summer when the broader market traditionally does not. Frankly, I had intended to add three specific stocks today, before the SEC warning chilled the environment. I will be monitoring today”s close for clues as to whether today”s press release is a last straw that breaks the camel”s back, or an inevitable development that is now in our rear view mirror.

http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370541842876

Posted in Bigger Picture