Exhuberence and Temperance

What the heck, all caution has been thrown to the wind. For now, anyway. The Fed cuts the rates by 50 points and the market goes to the moon.

Dow Jones: +335 (2.5%) to 13,739
S&P 500: +43 (2.9%) to 1,519
Nasdaq: +70 (2.7%) to 2,651

Strangely enough, I wasn't pleased. I want to make money. I like making money. I hate losing money. But the rate cuts threw fundamentals and technicals out the window in some ways. It may be a while, maybe a long, long time, before we see bargain prices in the market again. I'm all about getting great stocks on the cheap (most of the time).

So where does discipline fit into this fastbreak, no-huddle offense of a market? I used today's momentum to inch my way into positions for two more A grade stocks that I had been out of: Garmin and Amazon. Inching into the A graders isn't painful for me. The fundamentals, the growth rates ... I've liked them for months. So I got a small position of GRMN at 107 and another of AMZN at 89. No pain, just discomfort from buying shares of stocks well above their moving averages.

Also bought shares of McDonald's for my nephew and myself. Just the monthly addition I do for him, and he's been bullish on McDonald's numbers for a few months, well before the recent global growth numbers. He used to be bullish on Happy Meals, and now he's bullish on chicken snack wraps.

A generous market washes away mistakes: buying AAPL too high (above moving averages) at 135 and 144; buying NTDOY.PK at 62; buying UA at 65. I inched into RIMM last Friday at 87, not on technicals, and that could've turned into a mistake, too.

But a generous market also rewards technically sound entry points with a boost of turbo power: NILE within its 13-day MA last week at 80 (which I failed to get at 75 because of a glitch in my account); NTDOY.PK at 55; CROX at 40.