Fantasy Portfolio – February 5, 2010

The stock market has been taking big hits over the last couple of weeks, totaling 6.6% over the last month. Luckily, I took my gains in most of my stocks at the beginning of the year and haven’t seen as big of a loss as I could have. Most of the declines were caused be fears overseas and the usual unemployment factor.

It seems that the optimism of the DOW Jones Industrial Average being over 10,000 has been quelled slightly. The economy doesn’t seem like it is in good enough shape to push the DJI too much higher than its current level. When the unemployment rate declines and the economy really starts to pick up, it seems the market should sky rocket to record levels. I would love to see the market keep going up, but it just seems like there is too much optimism out there.

That’s when we get pull backs like these, when the market is way too overbought, and corrects to reflect a more realistic level. Once again we are presented with an entry point to get in if we have cash on the sidelines, which we should if we weren’t being piggish and decided to lock in our gains. Now that the market has dipped down and bounced back for a minimal gain, it gives a safe looking buy signal which I will be using to add to my positions this week.

S&P 500 at Year Start- $1,115.10
S&P 500 at End of Week – $1,066.18
S&P 500 Point Gain – ($48.92)
S&P 500 Percent Gain – (4.39%)

Portfolio at Year Start – $141,591.98
Portfolio at Week End – $133,010.71
Portfolio Total Gain – +$8,581.27
Portfolio Percent Gain – (6.06%)

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Important Info and Disclosure: Fantasy Portfolio traded on Wall Street Survivor using principles learned from Jim Cramer’s Action Alert Plus. I do own real shares in AT&T (T) and Nordic American Tanker (NAT). My posts about my fantasy portfolio should not be mistaken for financial advice. You should consult a financial advisor before investing in stocks.