Ah, what a market. Last post I stated how silly the market was going straight up without any fear like a daytrading ostrich. I sat back weeks ago watching stuff go parabolic and the talking heads on TV telling us how great things are. All along we have an administration that wants to socialize everything with credit markets that won’t lend unless you’re a commercial bank. It didn’t make sense and now we see the reality.
Over the years I really have concluded that the markets are freaking insane. It is like people are trading with side effects of Zoloft or they are just stupid. How can you go from the end is here market where stuff is trading 90percent down to “all is great in the world” market where stuff is up 5fold. Well like Buffet says, “Sell when people are greedy and buy when people are fearful and Goldman Sachs are good guys.” Or something like that.
Well markets are getting really oversold and I expect a bounce shortly. In the meantime, I am trading stocks that are short-term crushed that are trading well as far as bouncing or issues that are holding up well due to news. My 4 trading interests are SOXL..for huge down bounce setup…semi 3x….CSTR, VMW and BIDU…..CSTR has been holding well due to their Redbox division is kicking rear due to Hollywood video and MovieTime going away. VWM trading well to with cloud computing becoming more influential.. Bidu, for bidu sake. This is a trading monster that many people trade and bounces well when the market lifts. Of course with China indices going off a cliff and looking ugly on the daily makes it more risky than normal, but still trades well.
Keep your powder dry and don’t guess a bottom. With things going down so fast you miss it by an hour you can be down big. Heck an hour try minutes!
TRADING: CSTR VMW BIDU SOXL
1 comments:
Most markets tend to overreact, but getting the timing right is difficult. You could have been shorting the tech boom all the way to the top....It took so long for the correction to take place.
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