Thursday, August 9, 2007

Underlying Strength

"This is one of the most bifurcated days I have ever seen: I have literally hundreds of stocks on my monitor pages higher or barely down today with the DJIA down 300. This is highly unusual and indicates underlying strength, in my opinion. As well, Nasdaq breadth is -929, which is mild considering the headline losses. I still believe longer-term investors should use pullbacks to add to high-quality growth stocks at current levels and use strength to cut back on the most economically sensitive and emerging-market stocks." - Between the hedges

Considering how much the market was down, some of my stocks held up well: ANF, NVDA, UA, BWLD, MVIS, ERTS, EBAY. This proves, to me, there is underlying strength.

I love this volatility, and will continue to build my favorite positions, while dumping my trash ie. MCHX.

In my recent buys, I have used wide scales, meaning instead of buying 100 shares I might buy 50. I use Zecco and commissions are free so why not buy in scale? This dip in the market will pass, and before you know it your positions will jump back like a spring, thus catapulting your stocks higher. Right now I am looking for companies that are hitting on all cylinders: AAPL, AMZN, HANS, UA, LVS, ISRG, ICE, CMG, BIDU, NVDA, COST, NKE. I also am looking for stocks with a catalyst: MVIS, BWLD, ERTS, AAPL, FMCN, RIG, EBAY.

But, before you build your list, as I have, you must determine if you are bullish, bearish, or have no fucking clue! You must trade with confidence in this kind of market! Make up your mind and stick to your guns, or this market will whipsaw you in half. In the past I have traded with uncertainty, one minute I'm bullish, one minute I'm bearish, that kind of thinking will blow up your account. Take your position!

More later......

Trade with confidence! I love this video (don't mind the French subtitles)

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