Cash is King, I stress Cash. If you are cash you are a KIng and beating the mkt. Do not gamble here. Smart traders do not call bottoms they wait for it to happen. I did short a few stocks today and covered all positions by the close, in case the mm's fake at the open again like this am.
Now, even though the trend is down I do not rule out a suckers bounce... not am tomorrow that is certain in my own mind, maybe late day tomm wed, or Thur., but i will wait for it if you are a aggressive trader.
I am a optimist by nature, but I have serious concerns that the larger money is not going to play until a real capitulation near 3000-3500. I just see no buyers and increased selling into any attempted rallies. May be off here, but the bottom line is to wait until the market shows you it's direction. Breadth today was just awfull, 3-1 sellers.
I hate to be a pessimist, hate it with a passion, but if NASDAQ finishes in the Green this year I will be astonished.
My key here is to beat the mkt. that is what fund mgrs do, and I want to beat it BIG, and though i am not one, i will still adhere to these standard guidelines.
Relax have fun be smart, and realize that there are better days ahead. For now just trade them if you must and use STOPS at all costs.
I have some stocks that i really like, but i would be foolish to think that they can have a shot at decent gains at this point.
September 2000 so far has been the worst Sept. in the last decade, BE A SURVIVOR!!!
Of course this is all my own OPINION!
Sectors that I am attracted too for the next few months are Biotechs as there are a lot of conferences and discoveries made in Oct-Nov. Problem is with them though that most have no fundamental leg to stand on. I feel that the betterment of human kind is a + though and does have the potential for some nice gains. Still waiting for valuations to come down to more appropriate levels for now.
Telecoms are beat ie. WCOM, T..but i still have serious reservations about buildout of Telecom infastructure and the debt load to investors, and these stocks in general for the short term. so many sectors to talk about, i get excited so pardon me..will have more shortly.
But for now no stock is a good stock, as I am holding NONE as of today. Sector rotation is normal, and i am always looking for beaten up sectors especially ones that are financially sound.
I am actualy pleased that i have a chance to prove that we can make money in a down mkt vs. a up one, may that be long or Short... and hopefully you will to. Lets be patient.
Will have more to relate later. |
