Today is a bloodbath...bulls are getting deballed right and left. But this is why we take profits and raise cash when the market gets frothy and overbought. In hindsight this dip was obvious the level of carnage has totally caught me off guard and surprised me. In @copperstl 's weekly email report she mentioned the dollar was so oversold it should reverse and it would take down the markets...which is exactly what is happening. Commodities, smallcaps, low float plays, china plays all getting ransacked. But this is why we take profits and always keep cash on hand to buy step into the madness when everybody else is panicking. But I have a plan for this year which is long the market, china, small caps, low float plays with 50%+ earnings growth AND IM STICKING TO IT.... Do I like having my balls stuck in a vice. NO. DO I like losing all this damn money I have the last week (down 6-7%) NO! But I will stick with it till it stops working. Or I will fail, grow a moustache, move to France and live in shame like their men do.
I know when i start getting pannicky emails asking if they should dump all their stocks its time to buy. The good traders always buy when the idiots are thinking about selling. Many people had chances to take 20-30% profits on a lot of their positions last week and got greedy...now they are down and asking to sell. Now that is not a proper way to conduct business. As a trader I analyze risk to reward everyday. When the market was overbought the reward basically was even with risk. A gamble. Now we have pulled back to support and put on an oversold situation which increases our reward lowers are risk.
Ive been waiting sometime to use up some cash. By end of today I will go from 55-60% invested to 75%... I expect a bounce from here. the odds of breaking through support when market is soo oversold are less than 50%. Ill take that and buy some good cheap stocks here.
USE stops though..if spy breaks below support with some volume...all hell could break loose
Today I bought a whole host of stocks.
I am looking to add $bee on a snapback play
For longerterm swingers $trit is looking good if you can handle a little volatility. It was just 20 bucks