Come on by the chat room and ask me anything. Come on by from 2-3pm today and I’ll answer every question you’ve got as best I can. You can also hit reply on this email and I’ll include your question and my answer in the transcript.
Market tops are often accompanied by volatile day-to-day stock market swings. Now as I’ve been saying, let’s not go running for the hills, mostly because there are still many factors favoring a continued Bubble-Blowing Bull Market and we have some of the most Revolutionary companies on the planet in our portfolio that are creating trillion dollar markets.
If you were panicking, losing sleep, sick to your stomach or otherwise freaking out when the markets were down at their lows Monday and again yesterday(!) (those lowest levels yesterday being nearly 5%(!) lower than their current levels) then I’d suggest you trim some of your longs, raise a little cash and be cool. You know you’re too long and that you have too much exposure to the stock market when you freak out over a 10% pullback.
Sometimes, not trading is the best trade. This all might sound familiar to long-term subscribers. For example, here’s the original “Un-Trade Alert” I sent out nearly two years ago this week:
Stocks are trying to rally again today. What a tear they have been on since those panicky February lows. I’ll remind folks once again, that if you were scared/in pain/panicking back at the lows in February when the $DJIA was at 15,550 or so…well now, while we’re up huge from those lows, is a great time to sell/trim and catch your breath. You don’t have to be all in or all out and you don’t have to nail the top. Just make sure you’re in a position that won’t be painful if the markets do reverse and turn lower and get panicky in their sell-off action once again.
I’m ready and willing to make some trades to both the long or the short side, but am, as always, being patient and very selective in the pitches I’m going to swing at. As a trader, as the writer of a subscription trading service, and simply as a human being, there’s always a temptation to force trades — to trade simply because you think that’s what you should be doing. Let’s quote the greatest trader in history, Jesse Livermore once again:
“There is the plain fool who does the wrong thing at all times anywhere, but there is the Wall Street fool who thinks he must trade all the time.”
“It never was my thinking that made big money for me. It was always my sitting. Got that? My sitting tight!”
Cody back in real-time here. Don’t give into temptation or human nature. There is a lot of value in not trading sometimes.