Say it loud 10 times in a row (or longer until it sinks in): âOne particularly bad/good trade especially when fluky has absolutely nothing to do with another.â Just because you have your worst trade of the week in, say, shorting something and a piece of good news comes out in destroying you- it has nothing to do with your next trade. Nothing. Nothing. Expanding a little more on this theme, there are many many times when someone has a very good trade, goes out for the rest of the day, and then has six losing days in a row. Conversely, many people have a terrible trade and either a)try to double up on the next one or b)get scared to do anything thereafter. The mission here to use baseball speak is to try and get single after single after single- do not try to hit a 450 foot shot over the centerfield wall. Just because you are wrong (or right) on 21 trades in a row does not necessarily mean that the trend will continue on the 22nd trade. In short, sounds obvious, but keep as level a head as possible. Show fury (or joy) in microdoses ;it is indeed VERY healthy to get it out of your system rather than let it fester. But, really, get it out of your system and go on to the next trade- all the while remembering that any two random trades that you execute will have next to nothing to do with one another. Markets in Asia were mixed with Hong Kong up slightly, but Tokyo down again. Prices were down in Europe about ¾% on average. Oil, gold, and currencies are quiet although bonds are up again. There looks to be a bit of a bounce this morning, but it just doesnât look sustainable. With nothing major on the outlook to change things, look for a very choppy directionless day today much like the market traded between 11AM onward yesterday. Reiterating- Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea. If the whole story is not there - If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified- Good- The following stocks have good news and/or a strong technical pattern AMMD- good earnings MBI- splitting itself in two Bad-The following stocks have bad news and/or a weak technical pattern CHK- bad earnings UPL- bad earnings A â bad earnings RIG- closed near low of day HIG- closed near low of day AEE-closed near low of day ADS- closed near low of day EOG, DVN- among weak oils closing near low of day MEE, BTU, ACI- coals closed at their low of the day JPM- closed at low of day DE- bad earnings Earnings: WED FEB 18 BEFORE AEE AUXL CEG CMCSA CBS DE GT HST IMA NU OC OMX PWE RCI ROC STP XEC WED FEB 18 AFTER AAP ADI AEM BDN BIDU BMRN CYBX DBRN DVR EXR FRT HPQ IM ITRI KGC NHP OII ORLY PCLN PTP SKX SNPS TRN VVC WFMI Good luck today. Erik R. Kolodny
Well be navigating choppy waters for the next few hours with lots of breaking news. 12pm Obama speaks 1pm Bernanke speaks 2pm Fed minutes released. I personally will wait until about 3pm to see how this all unfolds before making any trades. best of luck