The Evening Call
Steve Cook on Disciplined Investing

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  • Make money by accessing all our Portfolios, the supporting research and Price Disciplines using our paid subscription blog, Strategic Stock Invetments. Our work is focused on making money for our Portfolios not as some academic exercise in Internet investing. Check our performance (audited)--our Dividend Growth Portfolio has beaten the S&P by 500 basis points per year for the last seven years but with a beta of only .62. (Mandatory Disclaimer: past performance is not a guarantee of future results.) We give you everything you need to duplicate our results, in particular, a strict price discipline for both Buying and Selling.

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Today’s close put both indices (DJIA 10363, S&P 1095) at or slightly above the upper boundary of the down trend off the April trading high.  Under our time and distance discipline, prices either need to close above that boundary for 3 to 4 days or spike upward once the barrier has been successfully challenged.  So just to be clear, stocks have not yet broken their down trend.  They are close and could reset to a trading range by week end.  Further, even if stocks reset the trend from a down trend to a trading range, our Portfolios aren’t going to spend cash just because the trend has been reset.  What they will do is spend cash in the next sell off if the down trend is first broken. 





Posted 07-13-2010 4:58 PM by Steve Cook