"Diversification is a hedge for ignorance" - William O'Neil
NEW YORK (TheStreet) -- Another day with really nothing going on at all. Enjoy the quiet as we're in the dead of summer.
I recall one time when learning from a mentor. He showed a chart of a particular strong stocks and he talked about the summer period. It was much like now.
The stock in question looked poised to break out in the summer and he said he was praying the stocks wouldn't.
While the move would have been nice, a longer basing period of the whole summer would set it up to have a much longer base and rather than running out of steam into the fall, which is the strongest time of year for stocks, the stock would be fresh.
It would have a great, long base and be ready for the fall move.
That is what ended up happening and the stock made a spectacular run into Christmas.
I know how fun it is to have action all the time but in this game you can make a huge amount of money very quickly so waiting for the right time is key.
So far it looks like we will just base and chop around for the next couple months and have superb bases ready to go in the fall.
If this plays out, we should have a great fourth quarter and all this chop will be forgotten and our bank accounts padded just in time for Santa!