Tuesday, February 23, 2010

Good advice by Richard Russell

So commented Richard Russell, editor of Dow Theory Letters, after the close of Monday's trading, in which the Dow Jones Industrial Average /quotes/comstock/10w!i:dji/delayed (INDU 10,383, -18.97, -0.18%) finished a lackluster session with just an 18-point loss.

The prior trading session -- last Friday's -- was even less exciting, if that's possible: The Dow gained just 9 points that day, prompting Russell to say over the weekend that the market is on a "trip to a foggy nowhere."

Russell's recommendation to investors eager to nevertheless draw conclusions about what the market's recent squiggles mean for its near-term direction: "Avoid doing something stupid. Relax, read your local newspaper ... and take a walk. Accept the truism that the market isn't always saying something, and this is probably one of those times."


Well I've said it before, trend player will fast surrendering themselves into hibernation as lack of trends. A value investor will probably needs to get busy reading annual reports, finding the next undervalued stock. But I agree with him on one point, don't do anything stupid.

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