Dow Down Another 300 And Tests 2008 Lows, Cheer Up There Is Money To Be Made!
The market is making me look rather wise these days. In the past days and weeks, I have documented how I have been pulling back on some positions due to the head winds for stocks. Today, the market continues to slaughter weak-hearted investors as the Dow drops another 300 points. Are you being massacred or are you finding winners in the ugliness that is the U.S. stock market?
As I glance up and down my stock watch list, I see just about everything in the red with decreases in share price in the 2,3,4 percent range. Ugly! So, why am I smiling? Let’s look at some reasons to smile.
Apple (AAPL): This fantastic company is down about nine bucks today (almost 5%)! Apple in the 160’s is a much better buy than Apple in the 170’s or 180’s! If Apple goes into the 150’s, I may throw a party.
Ultra Short ETFs: I mentioned a couple vehicles to make money in a previous post, SDS and SKF, which are up 4.4% and 6.5% respectively. Think financials might continue lower? Pick up a position in SKF.
Technical Trading: Day traders that move in and out of stocks based on technical indicators and short term trends are able to make money in any market. Market fundamentals have no bearing on this strategy. If you are curious about various day trading strategies or want to learn more, check out Tim Sykes. I have seen Tim in action personally, and his strategy works. Might be a good opportunity to expand your investing/trading strategy at a time when the market is bloody!
The 20-Something Advantage
If you are a value investor, you have the majority of your investment career ahead of you. Stocks are becoming cheaper. Stay focused, keep your emotions in check, and buy for the long term.
I’ll keep you posted on the stocks I am making moves on. Either way, enjoy the show that is the stock market!