We are in a strong market. The indexes don't seem to be reflecting this underlying strength. This morning the market gapped down at the open because of a potential government shutdown. Almost immediately, leading stocks (all gapped down), began climbing back. Within an hour, some turned green and most were down less than 1% and on their way to breaking even.

 

This type of action helps us reaffirm which stocks are the most sought after and thus the very best. Accordingly, we can use an opportunity like this morning to deploy more capital by adding to favorite positions (not messing up our average cost on each) or Force Feed into those same positions. See the prior blog post for an explanation of the "Force Feed" Method.

 

Best returns,


Scott O’Neil

President, MarketSmith

 Follow Scott O'Neil at Twitter.com/WScottOneil