Art, I'd like to be an investor, but since there aren't many safe places to leave money of late, except maybe in golds, call me a swing trader. I like to identify sector opportunities and then establish a core during a window. This size of the core depends on what I feel the risk/reward is and my mood swings during the window. If shortly after it appears I am correct I add or if I'm wrong ... do nothing or get out.
In my opinion the window for the dark side arrived a few days ago. I started buying longer term puts. My primary targets include the likes of JPM, C, CFC, FNC, FDC, LEN, BZH, CTX, GE, IBM, MMM and EBAY. Using mostly puts this go, primarily for leverage and because I am still very long PM's. Long little else.
I don't see it likely the DOW will achieve 9000 again.
There appear to be two common thoughts on the assumed downswing. A long and brutal one, or a much milder affair with only mildly lower lows. I favor the former, with some wild head fake corrections.
My goal this year is to eliminate the Ewave corrections in my portfolio, or turn them into rising triangle corrections. I believe it possible, and I believe it a good strategy establish dark side holdings here. PM's should imo peak before the market bottoms. |
