Bear Stearns and continuing Subprime worries have cast many or most investors mind set into serious BEAR mode. Naturally, majority of us will stay away right now worrying about Financial meltdown.
Wall Street always climbs on wall of worries. May be this is the time we should be prepared to buy, when everyone else is ready to sell or has already sold. Most indexes have tested January lows and likely Double Bottomed.
If you notice, list of our posted SHORT candidates is small compared to our LONG candidates. No one can ever predict what will really happen, but if you decide to make some long positions as part of your trading strategy, as we are, give your self enough time for market to swing up, if at all.
However, dont forget we are in BEAR Market and any serious bad or negative news can easily turn things anytime without notice.
For every long trade, try balance with a short trade and place your stop losses intelligently. Preserve your capital, so that you are around for next swing. Survival first is the key in volatile markets.
Here are short listed Liquid Optionable candidates for SHORTS and LONGS::
OUR OPEN TRADES: AAPL, BG, PCP
OUR CLOSED TRADES: $OEX(-), SPY(-), FXE(+), GRMN(+)
OUR SHORT CANDIDATES: ALO, CLHB, HCBK, NFLX, INSP, WMT.
OUR LONG CANDIDATES: NOK, OMRI, EEM, FRG, ATHR, ATPG, GLBL, GOOG, IBKR, ERIC, UNFI, AU, BDC, BGP, EK, NCX, OEH, URS, BG, PCP.
Good trading.
Harry
