Another 733 points down on the DOW today. Must have been some politicians on TV today! But in all seriousness, this should be enough for everyone to understand that any benefits that the government "interference" will have on the economy or our markets, will be slow in coming.
If we are back to trading on fundamentals it will be a sad fall trading season for traders of individual stocks. I hate to bore everyone, since everybody loves a great stock pick. But this is no time to own individual stocks. Or at least not for long. Very few professional traders are holding any stocks right now. Are you so much better then them that you can know where this thing is headed?
For now I am sticking with what I am now calling [remember, you heard it here first] the "Slingshot Trade". When we become so oversold it is pretty easy and you can almost throw a dart at a list of stocks and do pretty well. For now we are sticking with trading the Ultra Shorts and the Ultra Longs, [DXD, DDM, SDS, SSO, QID, QLD] including the DUG and DIG on crude.
If you are not familiar with these it is time to get on board. We bought the DUG last night and sold it at close today. I'll let you go do some research and the math. We are continuing to short crude for now but that doesn't mean that we won't go long [DIG] one day if we have a catalyst that will turn us around for a day. And with the movements [down] that we have had it doesn't take much.
With us down 733 on the DOW we may be testing the lows of last week. So if it falls apart again tomorrow look for this thing to rip again as buyers flood back in. We'll be right back in the DDM as we get under DOW 8,000.
Good luck tomorrow, you better strap in!
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