Tuesday, January 28, 2014

Troubled waters

Good morning folks, 
When the market is treacherous and you are long biased you have to find a way to hang on. Yesterday I only took three trades one in $ARIA which I was quickly stopped out of , one in $TVIX which gave me a nice return for the day and one in $NWBO which I mistimed and got to impatient with which resulted in a flat trade. All the trades were fairly quick as I wasn't as willing to hold and allow things to develop. If they weren't working for me right away I was out. $TVIX was the only one that performed as expected. $ARIA could have been a good short play but I tend take trades that are long biased. That is my comfort zone. 

The rest of the day I sat on my hands and watched the carnage in the markets. I would venture to say we have entered into the correction. We may get a bounce here and there, however, there has been a shift in the market dynamics. Earnings have not been fantastic, $AAPL was another disappointment after the close yesterday. Combine that with China growth concerns, Washington's inability to get things done, an overly bullish investment community and you have a recipe for correction. Fear begets fear, CNBC and other media venues with be coming out with all kinds of fear headlines. All the talking heads that have been bullish will now begin to turn bearish since no one will want to be caught on the wrong side of the market trend. I don't know how long it will last but it does require a sound strategy, patience and discipline to navigate the rough waters. We have been spoiled, its time for things to get a bit more challenging. 

Morning movers and other stocks that caught my eye
$TXMD Pr  20 ma bounce, $AKS bounce from earnings, $CLF pr, $VRNG pr nice daily been holding up tough in the carnage, 

I will be watching The short  and volatility ETF, $TVIX, $UVXY $SPXS, $TZA, to name a few

Seeking Alpha

Today's Markets:
In Asia, Japan -0.2% to 14980. Hong Kong -0.1% to 21961. China+0.2% to 2039. India -0.1% to 20684.
In Europe, at midday, London +0.4%. Paris +0.7%. Frankfurt +0.7%.
Futures at 6:20: Dow +0.6%. S&P +0.5%. Nasdaq -0.2%. Crude +0.5%to $96.24. Gold -0.8% to $1253.80.
Ten-year Treasury Yield +2 bps to 2.78%.
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