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I will be adding ESRX to the swing portfolio on Wednesday. I had been hoping for a bit of a pullback but this market is awfully stubborn. I guess it will do it when nobody is looking.

I was flipping through my copy of "The New Market Wizards" by Jack Schwager and I saw a quote by Michael Carr, who was one of the original trading turtles, that seemed rather timely.

"Don't worry about what the markets going to do, worry about what you are going to do in response to the markets"

I think this places today's market in a bit of perspective. We are overbought but in a strong bullish uptrend. What will you do if we have a 3 or 4 day rip downwards? Buy? Raise Cash? What will you do if we breakout into a 2% up day? And then runs more the next day. Do you have a plan in reaction to these scenarios? Do you have a plan if these things don't happen?

Regardless of your opinion you must have a strategy that you can stick to no matter what the market throws at you. Maybe the plan is to do nothing. That is a plan too. The key is to stick to it. Set up scenarios before hand and envision in your mind how you will react.

Have a Great Night!

Dave Johnson

http://dayvejohnson.blogspot.com

dayvejohnson@gmail.com

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