The Quiet Before More Storm #SassyMusings 4/16/14
- Snoozefest today, which while it didn’t provide much intra-day opportunity was probably much needed after the recent volatility.
- The volatility will surely be back soon.
- GOOG or GOOGL (how annoying is that) paid per clips down and so far stock taking a hit. IBM as well. You think it affects the market tomorrow? I have no clue.
- TLT is outperforming if you haven’t noticed, but this time without the market going in the other direction. Perhaps yields will drop and it won’t be as coupled with market movements? I do find bonds attractive for a breakout, but not enough to buy them.
- Today was a nice bounce (well the gap was anyway). For now that is all I think it is. Even if it goes higher unless I see signs of accumulation, I think we will make a lower high before heading back down.
- Even so, I bought a couple swing longs today for stocks that I don’t think will follow the market down if it drops soon and that are way oversold with good fundamentals.
- With a 3-day weekend coming up, tomorrow will likely be similar to today. Having said that it wouldn’t surprise me if I was dead wrong and we had some huge move in either direction or both for that matter.
- I think it’s time to start getting into biotech. Yesterday it seemed as if there was panic selling (capitulation) for the most part across the sector. I don’t think the sector will gain the same kind of momentum it previously had, but that there are good opportunities to be had.
- I had an interesting conversation with my subscribers today. The stock picks I’ve had over the last couple weeks have been amazing. One guy calculated it was an 85-90% hit rate. The problem? I’ve been stopped out of many of them before reaping the benefits. Makes for an interesting conversation about risk management and conviction. If this year is going to have the kind of volatility we have seen thus far, I guess I will have to adapt and favor conviction by loosening my stops.
- Chart of the day: Here is just one example of what I mean by the above. I bought AGN where the arrow is pointed and then when the market started dropping, I stopped out basically break-even after you take trading fee’s into consideration. And then look what happened. This is one example of many.
- I assume other people are experiencing this as well and so if you are one of them, hopefully my musing gets you thinking. In my book there is always room for improvement.
- Tweet of the day: nothing. Kind of a boring day all around.
- Just one more day of trading this week. Have a good night.
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