Trade Alert: Seeing more trading opportunities in this crazy market
Was it just yesterday that I wrote:
“I’m going to trim down a little bit of my longs into this huge rally and add a few more index puts and rebuild the index shorts a bit when the market rallies like it did today.” Well, this morning, the markets were rocking, up 3% or so. I did what I’d said, I trimmed some of our longs and rebuilt some index shorts and bought some index puts.
Then I took my wife and daughter to the Museum of Natural History. Walked around, studied, learned.
By the time I look back at my positions, the markets are down 3% on the day, down 5-7% from their highs this morning. So was it just yesterday that I also wrote:
“Likewise, if the markets crash 5-10% in the next few days or weeks or whatever, I’ll probably do some more buying of my favorite Revolutionary names.”
And guess what, I’m thinking it’s time to nibble a little of our longs and cover a little bit of these index shorts again.
You guys know that I am definitely not a day trader. I’m not a momentum junkie. I’ll go weeks at a time without doing much of any trading, as you guys know. But the markets are giving us pitches that are moving stocks 10-20% in a day or two. And that’s creating some opportunities to do some more trading than usual.
All that said, I don’t think you want to be aggressively long or aggressively short or aggressively trading these swings. The daily dislocations in the stock market action are probably not exactly healthy indicators for the next few days or weeks. Give yourself some room to do your buying and make sure you’ve got plenty of cash and/or hedges on the sheets too.
I forgot to mention that I’ll be on Fox Business from 6-9am ET tomorrow morning and will be on again around 2pm ET on Thursday.
Be cool. Be vigilant.