[Weekend Summary]
Dear Member:
In the face of a serious pullback in the indices, I chose to do little this week except buy some Ppl Corporation (PPL). It has held its' own since my entry on Tuesday and is up slightly even though the general market direction is definitely a drag.
The Nuveen Senior Income Fund (NSL)is essentially flatlining, but that is fine since I bought it primarily for the over 8% annual dividend paid on a monthly basis. For this month, it went ex-dividend on May 11th. I reinvest dividends in positions such as my NSL and hold the position until there is a serious break of support.
My philosophy in trend trading is to attempt to trade only high quality issues that have demonstrated that they, indeed, are in an uptrend. Of course, that means I will be much less likely to buy when the markets are trending down since most stocks tend to follow overall market direction. There definitely are times when wisdom dictates that it is better not to hold bullish positions. Of course, even during those times, and now is one of those times in my view, bullish opportunities do exist. That is why I entered the PPL play.
Remember, it is more important to know when not to play than it is to force entries into positions when the markets are moving in the opposite direction.
I can't wait until next week to see whether the markets are going to turn back up. There are some as yet unconfirmed signals that the slide may be stopping, but I won't feel confident of that until I actually see the confirmation.
Have a great weekend.
Bill
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