Stay Strong

Good morning folks, 
Yesterday was not nearly as fun as I had hoped it would be. Like we talked about in this weeks market wrap video. The market has changed and the bounces have become much shorter in duration. Unfortunately, Janet Yellen seemed to confuse the markets more than anything else after she appeared before a host of what came across as angry members of congress that just like to hear themselves talk. Unfortunately Yellen will be appearing on capitol hill this morning for a second day of testimony.

We had a slight bounce in some beat up names early then we just chopped around for the remainder of the day with a selloff into the close. Premarket we are seeing that there is weakness around the globe and that is leading to what looks like a gap down open in our indexes. We could be looking at more choppy action during the dog and pony show on capitol hill.  

We have talked about needing oil to stabilize in order for  some of the fear to come out of the market. Oil  closed at a new low yesterday and it looks like we are going to see new lows after the open. As long as oil continues to make new lows expect continued pressure in the energy sector. 

Gold and gold miners took a breather for most of the day yesterday and then managed to rally as the markets sold off into the close.  Look for gold, silver and the miners to continue rallying for as long as the market weakness continues. Just be careful not to chase. Look for constructive setups. 

Earnings season continues and so far the majority of guidance has only acted as more for the bears to feed on. DIS had the best quarter ever and it failed to give Disney any kind of boost. 

The best play this year without question has been volatility. It looks as though that will continue to work for the near term. If the markets continue to drift lower expect volatility to increase as new key areas of support are breached. In our Free Chat room Grimm is very focused on trading volatility and she is extremely good at it. Come join us in the room and learn from one of the best I have seen here http://www.chatzy.com/TradersDen. 

If you do join us please understand that we are trading. I know people are anxious to learn as much as they can as quickly as they can and I can appreciate that. However, if you have questions please ask them in the general room and as soon as whoever you asked can get to it, they will address the question. Please refrain from asking questions in private message mode until after the close. 

This is still a quick hit type of market make sure you have a good game plan. Always remember to book the singles and the doubles instead of trying to hit the home run in this type of market. Its also advised to reduce your position sizing in a choppy market to reduce your exposure. 

Volatility                            Oil                                             Biotech
UVXY XIV VXX TVIX     UWTI DWTI GUSH DRIP                     IBB LABU LABD       
 Gold                                                                 SILVER             Dollar 
GLD NUGT JNUG DUST JDST  GDX GDXJ           USLV                UUP 

Stocks on my radar premarket 
Going long stocks in this climate is very challenging

AG silver miner 

NG gold miner 

INCY gapping down off pr potential short 

HUN earnings 

NTWK earnings Thin one