Monday we had no plays but 3 setups. The three games went 2-1 winning with the two road dogs and losing with a home favorite. All three in College hoops.
Today should produce some plays as there are a number of games that look pretty attractive right now. Its early though and I will update shortly before game times for subscribers.
The market was down almost 470 points at one time yesterday and it was rumored they had shut down the elevators to the top of the empire state building the lines were so long:) But then about 30 min before the close we got a 200 point rally and when the smoke cleared everyone was relieved to only being down 270 for the day. And so goes another typical day in the markets.
Contributing to the madness yesterday despite no Fed Governor being scheduled to give us their wisdom one of the major news agencies sought one of them out at which point the fed governor do intelligently pointed out that 4 hikes in 2016 most likely will not be enough! That was good for a quick 100 more points to the downside.
We are now very oversold in the markets but below the 200 point MA. So one has to be cautious to get too excited right here on the long side. I am slowly getting into some mean reversion trades in stocks that historically have had nice bounces from oversold levels. These were one of the best performing categories for me last year and I suspect they will be this year as to get into my screen is no easy accomplishment. Last year I had 42 of these types of trades with an 81% win rate.
I suspect we are going to get a nice bounce very soon and it should last a bit going into mid or end of January. Of course that is all dependent on nothing unexpected happening in the World like the Saudis closing the Iranian embassy and escorting all Iranian diplomats out of the Country. Or Putin getting desperate because of the plunging oil prices and doing something stupid.
All you can do when investing is take it a day at a time and position yourself defensively while also taking advantage of what the market gives you. No easy task!
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