Friday, January 31, 2014

Don't Panic!!!!

Good morning folks, 
The markets continue be under pressure but this is not the time to panic. This is a time to re evaluate current positions, search for new long term opportunities to buy on sale and continue to refine your trading skills. This includes staying calm and keeping your emotions in check.

Most importantly, Protect Your Capital! That does not mean run out and sell everything you own into a a market sell off. It means go through your portfolio and take a look at the health of each individual stock. Look at their charts, read up on current events, recognize the potential catalysts or potential pitfalls that may be on the horizon. IE Earnings, Sector performance and sympathy plays that may impact your stock.

 I am long biased so I very rarely short stocks this limits my opportunity in markets like this. 
However, you can still go long in volatility indexes and $ETF's that are short biased. I don't recommend holding some of them them overnight  unless you are hedging your swing portfolio, they can make tremendous trading vehicles.  

The markets charts do not look healthy and as I have been saying the path to least resistance appears to be lower. In the end this is very healthy and it will great a great opportunity, this we know. What we don't know is how long this will last or how deep of a correction this will be. We have been on amazing run and its really been in one direction and that is up. We tend to overshoot in either direction so it is possible that this could last awhile and it could get pretty ugly. If you stick to a strategy that implements caution, limits your exposure and protects your capital you should be able to weather this storm. 

Morning movers and other stocks that caught my eye

$GSVC like the daily, $TVIX looking to play volatility, $ZNGA earnings pop and flopper so be careful, $SD like the daily, $QUIK like the daily, $BLDP pr can pop and flop, $SZYM pr, $VRNG pr pop and flopper do not chase it, $PFPT hot daily earnings, $IMGN like the daily and nice earnings beat,   


Seeking Alpha
Today's Markets:
In Asia, Japan -0.6% to 14915. Hong Kong closed. China closed. India +0.1% to 20514.
In Europe, at midday, London -0.8%. Paris -1%. Frankfurt -1.3%.
Futures at 6:20: Dow -0.55%. S&P -0.5%. Nasdaq -0.15%. Crude -0.4% to $97.85. Gold+0.2% to $1245.50.
Ten-year Treasury Yield - 3 bps to 2.67%
Notable earnings before today's open: ABBVALVAONAVYBAHBPOCNXCVXD,IMGNKCGKFNLEALMLYBMAMATMJNMODNOVNWLPCARSAIASPG,TSNTYCWETFWY

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Good luck trading today !!

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