If the DOW falls off a cliff I will add substantially to my DIA shares. I have recently added (last week) to positions in IWM and MDY at low points and plan to add to SPY and QQQQ depending on the severity of dips. As you can tell I am primarily an index guy.
With the exception of some biotech and tech stocks I am mostly a value guy when it comes to individual stocks, so I’m watching the financials, retail and home-related industry companies. There appear to be some unbelievable discounts right now, but it’s only a discount if the company survives and the stock goes up. Discounts are only confirmed in the rear-view mirror. I also track two indices – ITB and XHB, which are both beaten down bad. I’m not sure the downward trend is over yet, though.
