The markets appear to be trying to attempt to sort of stabilize a little bit…. kind of…. maybe. I’m serious. It’s just squishy and panicky out there. We need to let the psychology play itself out. The S&P downgrade, while in some sense, meaningless to everybody is nonetheless the first time the U.S. has had […]
I’m going to finally cover a little bit of…
The stock markets are down and down big this morning. And although we got an immediate 100 point bounce off the opening lows, the markets have now tested and broken below those opening lows. That said, the markets are now back to where they were during Friday’s lows. I already did some purchases near those […]
On that S&P downgrade of the US debt…
Letting The Days Go By/Let The Water Hold Me Down Letting The Days Go By/Water Flowing Underground Into The Blue Again/After The Money’s Gone Once In A Lifetime/Water Flowing Underground. Same As It Ever Was…Same As It Ever Was… – Talking Heads S&P downgrades US debt. I’ll just start by saying I’m so thankful I […]
I’m worn out from this wild action…
What’s right isn’t always popular. What’s popular isn’t always right. – Howard Cosell I’m worn out from this wild action. But we still have 3% of the trading week left, and who knows what the heck that last hour of the week will bring. Will the bears scramble to cover before the weekend? Or will the […]
An absolutely huge intraday swing to the upside hits now…
An absolutely huge intraday swing to the upside hits now. And that’s why we don’t panic at the lows. I did sell some WFC puts and I bought some Apple and Visteon at the lows of the day. The portfolio is now up huge on the day too. I’m going to let it play […]
Just a nibble, just a scale in to your best stocks…
It’s slippery out there. And the path of least resistance seems to be down for now. Take a look at how the markets just keep fading lower intraday today (again): That is tough to fight guys. Stay in the game, don’t panic. But don’t fight this too hard. Just a nibble, just a scale in […]
I am going to step in and buy some…
And that’s why we don’t try to catch an exact bottom. This market is going to have to rebuild some base and maybe even just settle down to some daily drips before we really see a sustainable kind of bounce. This morning’s early rally obviously was not sustainable. And the highest beta — that is, […]
One of the most important (because it’s actually true!) sayings on Wall Street is…
Power down the computer. Shut down the Bloomberg terminal. Turn off the TV. And go take a walk. You won’t see a 5% intraday sell off in the Nasdaq very often, and if you’re shaken up after today’s sell off, there’s a darn good reason for it. On the other hand, hopefully, you had some […]
Heading into the close, I’ve done a few more trades…
Okay, heading into the close, I’ve done a few more trades. I did sell a fraction of my puts in Wells Fargo, mainly to lock in a 50% gain after just three days. You don’t get returns like that very often and this gives me some cake that I can keep or eat too. […]
A snapshot of the headlines says a lot…
A snapshot of the headlines says a lot. For what it’s worth, only James Altucher and I seem to be wanting to buy this market on this crash. We could both certainly be dead wrong, but I’d rather be a contrarian. Matter of fact, contrarianism is a form of “hardest trade to make”, if you […]
Transcript of yesterday’s chat…
Yesterday, I met about 100 of our subscribers in the chat room at TradingWithCody.com/chat and we had a blast and learned a lot. Here’s the transcript, lightly edited and condensed. We also organized the transcript so that general market/investment/trading/strategy questions and answers are at the top and questions about individual stocks are at the bottom. […]
The hardest trade is usually the right one because everybody else is doing what’s easy…
I do think it’s a better time to buy than to sell right now. Easy does it though. Trying to catch a perfect bottom is the quickest way to getting wiped out. Meanwhile, there are some very important psychological lessons to today’s action. Do you feel sick to your stomach over this market action? Can […]
That means buying into today’s collapse…
I’d written earlier this week repeatedly about how the hardest trade to make had been no trade at all. Not trading at all was particularly “hard” since we had raised so much cash at the highs just a few days earlier. If we stay with the concept that the hardest trade to make is usually the right […]
I’ll be starting to be more aggressive deploying my cash now…
Sailin down the river in an old canoe, a bunch of and an old tennis shoe. Out of the river all ugly and green, came the biggest old alligator that Ive ever seen! Teeth big and pointy and his eyes were buggin out, contracted the union, put the beggars to rout. Screamin and yellin, he was […]
Moving on from the gold short for now…
Investing well is as much about selling as it is buying. Sometimes you have to take profits. Sometimes you have to stop yourself out on a losing position despite your high conviction level.Investing well is as much about selling as it is buying. Sometimes you have to take profits. Sometimes you have to stop yourself […]
Meet you in the chat room in 10 mins, at 2pm EST…
The markets have stabilized, at least intraday here, and the Nasdaq has even climbed into the green for the day. The S&P and DJIA and the market’s breadth just turned fractionally positive too. I bought some more Marvell calls dated out into February 2012 at and around the $15 strike price. No other trades so […]
Remember during last week’s chat…
Remember during last week’s chat when I wrote: Feet to fire, I’d guess that the market’s probably got 2-5% downside vs. 1-2% upside in the next week or two and then we’ll be back off to the races somewhere starting the second week of August or so and we’ll have a 5-10% upside vs 1-2% […]
Everybody was apparently set up for a big “relief” rally one a “debt deal” was completed…
Did I mention ugly? No other way to describe today’s nasty sell off. Everybody and their mother was apparently set up for a big “relief” rally one a “debt deal” was completed. So the market did exactly the opposite and collapsed as the selling fed upon itself. Lucky to be in cash indeed. I didn’t […]
The ugly, the ugly, the ugly and the ugly…
Yesterday I wrote a piece on here called “The good, the bad, the ugly and otherwise…” Today that piece would be called “The ugly, the ugly, the ugly and the ugly…” Because it is U-G-L-Y-you-ain’t-got-no-alibi ugly out there today. We were luckily raising big cash last week when the markets were near their highs…”luckily” indeed […]
Here’s a list of my positions, in order from biggest to smallest…
Here’s a list of my positions, in order from biggest to smallest, after all the selling I did last week and the moves I made yesterday too: Longs – Sandisk Google Cisco Marvell Microsoft Cypress Nuance Apple Corning Riverbed Visteon DBA Ciena Adtran Shorts – Lender Processing Services Wells Fargo SLV GLD Cablevision Live Nation […]