I think I feel about the same as every other trader right now, hung over. It has been a tough week or two for everyone. But as I have said in previous post we can control our anxiety and stress by formulating a plan and sticking to it. Even if it means sitting on the sidelines for now. But I don't think you have to. There is money to be made.
We are at a point where we need to forget the fundamental technical analysis and trade the trends using catalyst for our buy and sell points. I am tempted to say don't buy any stocks right now, but that wouldn't be right. There is best of breed companies that are getting knocked down to levels that I personally have to add to my positions on. I am adding to FCX and NOV just to name a couple. But I am still sticking to my plan to sell them on every rally. Until we get some consolidation in this market I will sell every rally then turn around and short the market using the QID for the NASDAQ and the DXD for the DOW. Most likely this week it will be the DOW with the levels that the NASDAQ has reached.
Now that the "bail out" vote [yes I'll call it that] is done what is our next catalyst? I think it will be the Federal Reserve lowing the interest rates. The Street seems to be betting that if financial markets remain unsettled, the first rate cut could occur before the Federal Reserve's next meeting on Oct. 28-29. Some are saying as early as this week!
The trend is down no matter how the talking heads want to polish this thing. Stick to your plan, take your profits and don't trust this market.
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1 comment:
Hey Ray:
First for stopping in at my blog. It is such a crazy time right now. It amazes me that some of the idiots on bubblevision are still saying to buy the dips, sell the rips - when there clearly aren't any rips.
Anyway, I'm 100% in cash and just waiting for a trend to develop.
Good luck and protect your cash.
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