Friday, October 10, 2014

Stay calm!

Good morning Folks, 
What a week in the markets. 
Volatility is back and fear may just be beginning to take hold. There has been some damage done technically to the markets and in my opinion, we likely have more downside ahead of us. Just about every sector has felt the pain. 

Right now its all about the strength of the dollar and Europe. Mario Draghi brought down the markets yesterday along with the negativity coming from the IMF about the worlds slowing growth. Now just throw in a little Ebola & ISIS and that gives us plenty to be fearful about.

One of my favorite sayings in life if "This Too Shall Pass" all of the negative forces in the world will eventually dissipate and positive things will begin to happen. Fear will begin to fade and the markets will rise once again. 

During these times I tend to focus on building my long term watch lists of stocks I want to own on sale. I reduce my position sizing for day trades and I may be starting positions in stocks I want to own in my IRA. 

Taking stocks to the long side for day trades is a tough trade unless its a company that makes Haz-mat suits like LAKE and APT.  Keep an eye on TVIX TZA JNUG BIS if the markets continue to struggle or if gold and silver rise as a flight to safety trade. 

Most important thing you can do is maintain your composure, stay calm and understand that the markets are creating opportunity. Know why you are buying or selling a stock. Is it an investment or a day trade? How long do you want to own it? What time frame are you most concerned about? How much do you know about the company? Is your investment thesis still in tact?  

Don't let a day trade turn into and investment and don't let an investment turn into a day trade. Know why you own a stock and have a clearly defined plan don't let the market panic define your plan.  

Sometimes the best trade is the one you do not take. Don't try to pick bottoms but if you want to start nibbling at stocks that you think are on sale and you want to own for the long haul. Scale in, recognizing that in a bear market there is a likely chance it will continue to go lower. I am not saying that we are going into a full blown bear market but anything is possible and it never hurts to be prepared for all potential outcomes.

Stocks on my Radar
APT and LAKE if nothing else they are fun to watch, CVEO news last night Einhorn upped his stake, SCMP pr last night gapper, EXAS pr big gapper, OBCI gapper getting extended thin one, IBIO looking like it wants back over the 1 dolla holla, SMED daily not bad thin one, VJET held up fairly well started a small swing yesterday, STV continuation 5 dolla holla, XNPT 6 dolla holla ?    


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Today's Markets:
In Asia, Japan -1.1% to 15301. Hong Kong -1.9% to 23089. China -0.6% to 2375. India -1.3% to 26297.
In Europe, at midday, London -1.6%. Paris -1.8%. Frankfurt -2.3%.
Futures at 6:20: Dow -0.6%. S&P -0.6%. Nasdaq -1.1%. Crude -1.3% to $84.68. Gold -0.25% to $1222.20.
Ten-year Treasury Yield -2 bps to 2.3%.
Notable earnings before today's open: FASTINFYPGR

Best of Success! 

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