I can’t get a handle on this panic. Selling stocks this morning into this next crash down will likely put you in the ‘panicked early’ crowd. Depending on where stocks open I may be selling some old favorites myself.
I do not need to read or talk to 1,000 traders to know that things are chaotic.
Oil this weekend opened down 30 percent. I have a great friend Peter who has traded commodities successfully for 40 years (retired obviously) who tells me he has never seen a move like this. If he has not and is retired, what edge would any of us really have?
This TEN day move in the Dow Jones Composite from yearly high to yearly low has not happened since the 1930’s…
Again…so little context/data to trade against, I just can’t be that person to make a stand.
Sometimes panic just runs us over so best to huddle up and play defense and be willing to pay higher prices when things calm down.
Warren Buffett has a 30 percent cash position so he will be putting money to work and writing op-eds on the market over the next few months but timing those is hard.
I will probably trade a few index options if the markets stay open but I am not going to watch too closely.
Yesterday morning , knowing the panic would unfold, Ivanhoff and I did our regular weekly Momentum Monday. Obviously, we were not panicked enough! We spent our time unpacking all the issues and levels and stocks to watch for people that want to try and trade or position into the meltdown and changing market conditions. You can watch or listen here.
I hope it helps.
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