Doc, just curious, if you are all trades and no work today, how would you have played the internuts? The way the action unfolded it was completely mind boggling to me. I really have no sound strategy to use to play them other than make an initial bet and see what happens the next minute. Guess I'm just too conservative for I have never stepped foot in any casino either.
TWLB - it warned of slower earning next quarter and next year after the bell. I expect to see it get slaugtered tomorrow. Technically, TWLB also closed at 52 wk low, therefore a breakdown. However, I'm prepared to set a buy stop tomorrow after the initial openning bell slaughter. RXSD, NBTY, GNCI all went through their shares of slaughters when they announced their bad news but they always came back intraday. Therefore, when it gets rediculous one should buy on the dip on these stocks. All the industry slow-down/bad news are already priced into these stocks. They are still growing 20-25% earning NEXT YEAR at their current PE of about 10. This is different from the drillers but the street will not recognize this INITIALLY during the first panic. However, I will also set a tight sell-stop after the intraday rebound and will hold only till the day after (may get an opening bounce the next day after selloff) the most. These are the rules and one must be disciplined enough to adhere to these rules in order to survive in this crazy market. |
