Stock market falls to lowest level of the year; buying opportunity!

As those of you who regularly read my blog know, I have been holding cash since I sold almost every position above 1,400 on the S&P 500 in April. I began buying yesterday, and really bought a lot today. The S&P 500 actually closed below the 200-day moving average, so it would not surprise me to see the index fall to around 1,200, which is where I think it is ultimately going. I spent about 50% of my cash so far. I am holding the rest to see if we go lower. I may buy a little more at around 1,250, but I will be waiting for close to 1,200 to spend the bulk of what I have remaining in cash. I have avoided a 10% correction for my clients, which means they not only avoided heavy losses during this correction, but that they also had maximum cash available to reinvest after the correction drove prices down significantly. My focus remains on technology, industrials, financials, and consumer discretionary – the sectors that perform best in a recovering economy.

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