What will it be?
Thursday, July 26, 2007 at 09:43PM
Demi/ YourPersonalTrader in AAPL, AMZN

Tequilla...JD...Vodka....maybe a shot of each...or maybe a two-four, as we so dearly call it in these parts.   You're/ we are entitled to whatever tonight!.   If you wake with the spins, that's okay cause it might you keep away from buying this slaughter house in attempt to make some of your money back.   Our preference now is to stay in bed ..alone..when it comes to buying any dip or holding anything in size overnight.   We're not about to make this into a daytrading site as it doesn't suit the majority of our membership.   But, if we see an opportunity or if you do.. shout it out. 

There is no way you could have avoided any or most parts of today.   If you were 100% cash heading in, that's only possible if you trade 1-2 stocks at a time.   A scene was supposedly set last night with the Q's being up from the AAPL report.  Some kind of positive was expected by all coming into this morning.   Unfortunately ...and surprising to most the futures woke up with bad breath.   Simply, even if you liquidated 90% of your holdings the past few days, you were still in big trouble at the open as the market plays no favorites.   Stocks gapped down 1-2 dollars and there was nothing you could do, not so liquid DJIM stocks were shot first.   What you do is natural and that is wait for some reflexive bounce action, we've seen it for months as buyers step up to the plate...so you look for it... okay...now as the Naz is down 15...down 20...then down 30...oh yeah its coming at Naz down 40...okay maybe ....50.....60....chit 70+??    If you are looking forward to tomorrow to catch more of this late bounce, that's fine,  there will be short lived opportunities to cash some back in.   But.. in the big picture, you really need to do some background research and realize that this sub-prime, housing story is coming to a 'global' mess created by the US credit market if you have a book of stocks.    We have mentioned many times over,  we love when 'Paulson' comes in to save the market.   He usually does, but it never needed saving like it did today... Paulson says..."Mortgage/Sub prime Collapse Doesn't Threaten Economic Growth" .  The bounce started late as all of a sudden his comments were released...hmmm, yep, that's how it works.  The big boys call their ex wall street frat boy in power and try to have him save..help out....but, today he didn't need a call or 100.   It was a no brainer for him to step in.   Unfortunately, the mess they created is spreading where fear is being felt overseas.   Confidence is dwindling by those around us and that's not good at all.  

In the premkt, we had more than a few excellent reports as pointed out by members.  There was something fishy going on at that point, besides the Q's being down, there was no interest at all in some excellent EPS reports.  Nada..zilch..goose egg...no hitter.   No volume was seen.  Q's are constantly down in the morning, but usually there is still interest in individual issues out with nice EPS..not today!.   Only the big fish have received a good trading enviro in the past week and they are AAPL, AMZN.  We have seen too many enthusiastic, no volume opens on good results from small caps and what has resulted has been short lived up gap opens on low volume where a few end up holding a white flag for help because they basically buy at the high of the day by chasing.   We tried to convey this in the forum this morning..be careful out there as it's not the same market we are used to where EPS winners fly!.    It is best now to get your bearings straight on a stock before chasing it off EPS #'s.   Give it time from premkt to early on it in the trading day, this will probably exclude the micro/ small cheapies with characteristics we all so love to play when they come.    btw..there were a few small caps that acted well today OMTR, AXYS.     Others might just need to be watched and if the market begins to have a positive bias, maybe they will be the first place we should look for an opportunity in.  The dominos are falling....you never know if your stock is next in line.   We all can't liquidate 100% and pretend to see this coming today, most accounts are set up that such quick action would not be possible and if it was... you still take a beating today.   It doesn't help in this market that you can't find a buyer in sight for many of our closely followed small caps.  Your only option might be to send off a market order and bail.  Well, that only adds fuel to the fire and we have collapses left, right and center.  

The only thing left to do tonight is to suck it up and tell yourself with a little discipline you will peck and chew away at the market and get your money back and hopefully more.   There is still that glimmer of hope in the AMZN's..AAPL and many more of good earnings.  This might be an underlying base that will get this correction out of the way fast or at least give us something to eat at the rest of the summer.    The difference from recent times, we the little people really don't know the extend of this credit failure and what it could possibly do from here on in...the impression it is leaving is spreading beyond North America.  Just be smart, disciplined and wait for an opportunity to score...it will come no matter what...just maybe not in a boatload as seen recently.

Article originally appeared on Your Personal Trader (http://www.yourpersonaltrader.com/).
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