DJIM #37 2007
Monday, September 10, 2007 at 08:07AM History says that if implemented, US monetary easing is most likely to go with rising equity prices for the next 12 months...woo hoo, how's that for a cherry on top of all the turmoil in the markets this summer and now spread to the real the economy after the employment figs!. Great, except we're not into putting anything in pen right now, everything we do is in pencil right now...we're not even looking 12hrs down the road. The day of reckoning might have come for the Fed, the markets but when it's given with a stunner punch to the belly, it don't feel too good. They might as well have used a Taser for same effect. So, the outlook is cloudy and the only thing that matters to us is to look through the clouds and look for trading opportunities. Nothing has changed for us, we're here to trade. Methodology here does not change, everything remains the same as to how we've approached every trading day this summer and now will in September. There's no enlightenment here at this time, without being repetitive. Best thing to do is go back and spent 10 minutes reading the Journals of the past month or so that relate to trading this market. Nothing will change. In all honesty, despite the stress of it all...the choppiness, volatility has been excellent for trading DJIM stocks and our books. Only thing now and it could be only momentarily is to sharpen those pencils. A swing trade, might only be a daytrade. Our time horizon is even shorter for a trade now. This a headline driven market and it's not of the daily newspaper variety. These headlines change like the weather here in London...almost hourly. So, if you aren't at your trading platform throughout the day, you'd better have researched your stock(s) hold and know its habits if keeping it close to your heart, your portfolio.
We've outlined the DJIM plays in detail over the past week and it's probably worth a read back, our impressions of the shippers, solars, Chinese stocks have not changed or the potential next buy points for recent plays (on NCH's ). Only thing that might not surprise us this week, is seeing new highs for VMW after its strength on Friday.
