A Reason to Sell, Opportunity Knocks
We saw this pullback coming since last week and used that opportunity to exit stage right to 100% cash. The winner today is the iPath S&P 500 VIX Short Term Futures (VXX) up 8% everything else sucks.
Mastery warned to avoid stocks in Waiting to Trade. After all, why gamble all your winnings this year at this point? Now that the market has reacted with a knee jerk of selling, it's time to sit back and watch the chaos from Cashland. We recommend letting the bears take the reigns and wait to buy back possibly tomorrow or next week. If you must buy something today then consider a basket of stocks like the ProShares Ultra S&P500 ETF (SSO). It is difficult to know if the pullback is just temporary or if everyone starts buying in another hour.
We disagree with the Talking Heads, you have to time the market these days. There's too much at risk in a post Lehman Brothers World. Why let your gains be wiped out by panic and fear? Hang in there fellow investors and look to enter the SSO at $75 even. As we head into the final hour of trading the Dow Jones and S&P 500 are down big, 1.8% and 2% respectively.
Another sector to watch is the volatile silver miners, stocks like Silver Standard Resources Inc (SSRI) and Silver Wheaton (SLW) which hit new 52-week lows today. Silver is not useless, these types of bottoms are great opportunities to investors waiting in the wings.
CHART OF INTEREST
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Eurozone Equities: Political Risks versus Strong Macro Crosscurrents | Financial Sense
- Baffled WaPo Still Arguing That Only Dumb, White Men 'Approve' Of Trump | ZeroHedge
- JPMorgan: Institutions, Hedge Funds Are Using The Rally To Sell To Retail | ZeroHedge
- Honesty | ZeroHedge
- What Could Go Wrong? | Financial Sense
- A Two-State Solution... For The West? | ZeroHedge
- Cybersecurity of the Power Grid: A Growing Challenge | Financial Sense
The most relevant financial news and articles from the Internets
- $3.7 BILLION HEDGE FUND: There's a lot to be excited about... | Business Insider
- 10 practical daily habits that will radically improve... | Business Insider
- Mexico's retaliation against Trump may be taking... | Business Insider
- Ocean City, Md.: America's Most Affordable Fun City | BusinessWeek
- This 7-minute workout is all you need to get in shape | Business Insider
- 7 of the most unusual ski destinations around the world | Business Insider
- 'FREEDOM FROM THE PRESS': New York Daily News previews ominous... | Business Insider