Tuesday, February 4, 2014

Having a plan


Good morning folks, 
Wow what a day right? It was pretty rough out there. Even though the markets were bleeding we had a great day trading. Before the open Noa laid out his strategy for the day and after the market opened he played it nearly to perfection. There was no panic, there was less stress and he had his emotions in check because he had a plan. All he had to do was execute. My plan was a bit different from Noa and I traded my plan. We were both successful and after executing on our plans we spent the rest of the day in a very comfortable position joking around and not feeling any pressure to make additional trades unless the setup was extremely compelling.
  
We have been saying for a few weeks now that if you are sitting with profit in swings that it would be a good time to lock them in and build cash. Hopefully you have done that as it looks as though, this market will continue on this current path of lower, at least in the near term. This is not a time to panic its a time to formulate a sound strategy and execute.

Always remember that in the stock market, conditions will change rapidly and you have to have a plan B, C, D,  E and F. Move with the markets and adjust your strategy accordingly. So on days like yesterday where breakout setups on individual stocks weren't really working and there was very little follow through. We looked to short setups, bear ETF's and volatility indexes. It looks as though we could have another challenging day today. There are some green arrows out there in the pre-market but it doesn't look like they are coming with a lot of conviction..

I would suggest that we are getting oversold and at some point we will have a bounce, be prepared to take action and change strategy when that occurs. 

Morning movers and other stocks that caught my eye
$OCLS pr nice daily, $FURX holy cow what a gapper off PR, $YUM earnings beat, $KORS earning beat, $NURO pr decent daily , $KTOS on radar for a bounce if the market bounces, $FULL continuation of move, $ITUB pr lots of resistance overhead, $WSTL earnings nice daily, $PTIE pr earnings nice daily, $NLST and $WYY pr , $LIOX earnings, $RSOL pr do not chase

Seeking Alpha
Today's Markets:
In Asia, Japan -4.2% to 14008. Hong Kong -2.9% to 21398. China closed. India flat at 20212.
In Europe, at midday, London -0.4%. Paris -0.4%. Frankfurt -1%.
Futures at 6:20: Dow +0.2%. S&P +0.3%. Nasdaq +0.2%. Crude +0.2% to $96.58. Gold -0.5% to $1253.60.
Ten-year Treasury Yield +3 bps to 2.61%.
Today's economic calendar:
7:45 ICSC Retail Store Sales
8:55 Redbook Chain Store Sales
10:00 Factory Orders
Notable earnings before today's open: ABGACIACMADMAGCOAMGARMHARRYAXEBDXBHEBPBSXCHD,CLXCMECNCDLPHDWSNEMRENTGETNFISGCIHCAHWIDXXIPKORSLGLIOXLRNLRYMHFIRSE,SEPSIRISTTDGTECHUBSUDRVSHWDRXYL
Notable earnings after today's close: ACLSAECAFLAMPATOATWAXSBWLDCBLCENTCERNCHRWCODE,CVDDATADVEQREXPGASGHDXGILDGIMOGNWHAINHCSGHIJKHYKEYWMACMWAMXMYGNNANO,OCLROMCLPACBPIKETDWTHORULTIUNMUSNAVASCVOCSXOOM

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Good luck trading today !!