Trading this market is simple — when you follow the rules

No surprises at all in Monday’s market pull-back.

If you’ve been following my trading — you knew it was coming.

So, if like me, you “played” with your shares in McDonald’s and Walmart last week by asking no questions and just following the golden rule of taking the profits when they were ripe for the taking — then you should have followed me in by starting buying back into those names by a quarter or a third.

It’s a no-brainer.

These companies just got hit by a momentary blip in the market.

In layman’s terms — it’s like a sale at Macy’s — you’re buying quality merchandise on sale.

Nice, solid companies that are going to be around tomorrow, and next year, and many years thereafter.

And then there’s the dividends — I just love those dividends.

I love playing with these two companies.

Pop Quiz — so if you bought a little today and the names go up or down tomorrow — what are you planning to do accordingly?


If they continue to get beaten up by the overall market — and not based on their fundamentals — strike up the band and place your limit orders.

If they pop back up — take off your profits.

Keep paying attention — at some point it will start to sink in.

On my radar screen and warranting further due diligence right now is Wells Fargo. I’ve liked this name for a while, but haven’t been playing in it. With it taking a nice punch to the tune of 77 cents Monday, I have to see if it was just due to volatility in the market, or if there’s an issue with the fundamentals.

Just remember the usual disclaimer: Don’t base any of your investment decisions on anything you read here — do your own due diligence — or at least enough research to pick the right professional to do it for you.


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