As John McClane said, welcome to the party pal!
This morning, Charles Schwab (SCHW) put out a press release entitled “Schwab Outlines Active Trading Tips for Investors Returning as the Market Rebounds.”
Among other things, Chuck recommends that investors “stick to a trading plan” and “consider using limit orders” was ways to better manage one’s trading.
It’s actually all good advice, but it seems that Schwab is a bit late to the party. The market’s gone up in a straight line since March – a time when people REALLY needed some trading tips.
I will say this though – I was pretty surprised that Schwab gave the tip “trade the trend,” because “the trend can be your friend.” This is the type of common sense advice that Wall Street tends to roll its eyes at, because following trends does not require high-priced MBA’s and PhD’s.
But I do worry that the market’s trend is officially broken, simply because Schwab put out this press release. If the company’s determined that people have returned to the market, we may not have much new money coming in. And it’s not helping things that the jobless claims number was bad. Oh well. I own some put spreads on the iShares Real Estate Index (IYR).