Averaging down is an option

    LNG

    Posted by vimal on 20th of Jan 2011 at 09:52 am

    Averaging down is an option here but I have taken the prudent stance of taking profits on all of these “minnows”. There is just too much risk here with the market being inflated and it will take a very strong stock to buck the trend. They are so far extended over their key Moving Averages that some form of mean reversion has to take place or a lengthy pause at the very least. I am now in a defensive stance and my personal watch list/scanner is searching for short opportunities rather than longs

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