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Is the Pull-back Enough?

The markets have pulled backed sharply today. The DOW was down over 200 points as of 12:17 pm. During the summer months- June, July and August, market activity naturally slows down. This is normally a good time to implement strategy. From a tactical standpoint, you use this time to adjust your existing portfolio and reallocate resources to industries and companies that you believe fits your investment goals. For example, my overall strategy is to focus on companies that we believe will do well in this political environment such as health care, technology, oil, gas and alternative energy, and lastly real estate.

Our goals are to look for and build positions in funds that have strong positions in companies with good valuations. That is what I will be working on today. On that note, volume on the ProShares Technology Fund (NYSE ARCA:ROM) is above average, though the fund is down around 4% today. ProShares also have a short fund to their long fund, the ProShares Ultra Short Technology Fund (NYSE ARCA:REW). I've thought about taking an investment position in the short fund but its too volatile to trade and use as a hedge. Maybe!

06/15/09 03:02 PM


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