With the plunge in the Stock Market on Friday we are reaching a point where panic is beginning to show.
I have 3 mean reversion trades: QLD and SSO Both are 1/4 position index trades. Both are underwater of course:)
Also, I have CMCSA, a 1/2 position which is hovering around breakeven.
I also have been trading in and out of AMTX a 2.00 stock. It trades between 1.80 and 3.50 quite often. It’s rare to find a low price stock with this kind of reliable swings. So let’s see how long it lasts.
As far as adding to my mean reversion trades in the indexes. I am not quite at that point yet. Close, but still would need to see more downside to consider it.
If these were normal times I would be adding here. But we are seeing too many 1000+ point swings in a few days to start stepping out here. So I am tightening up my adds a bit.
We weathered the last big drop well so let’s see how we do on this one.
Last Sunday I wrote a bit about reality vs. the news and how it affects your investing decisions. I received quite a few emails discussing this with many asking for specific examples.
It’s not easy to pinpoint an exact example when you’re faced with the question:)
But I do a lot of reading and this morning came across a very good example.
If you’re following the news you know that Trump has appointed John Bolton as the head of the NSA. I do not want to argue the merits of the pick.
How the mainstream media has handled this is a prime example of why you need to find reliable people to give you a reasonable analysis of events.
If you only listen to the mainstream media and nothing else you will learn that Bolton is a catastrophe. The insults, innuendo, and outright falsehoods are now in the news 24/7! Hysteria is being created at a fever pitch.
But I read an article this morning from someone I respect as much as anyone in the political sphere.
Alan Dershowitz, lifelong Democrat, libertarian, a world-renowned Constitutional law expert, wrote the following article.
https://www.newsmax.com/politics/alan-dershowitz-john-bolton-national-security-adviser-white-house/2018/03/22/id/850331/
Completely contrary to almost 100% of the reporting of the mainstream media. Let me add that Dershowitz is a Clinton supporter and did not vote for Trump.
The difference is he gives an unbiased review of events rather than the political spin you hear daily from the mainstream media.
You see this time and time again. Do yourself a favor and get away from the hysteria that drives the news these days. It will not only give you a bit more sanity in these insane times but also allow you to make better investment decisions!
I will have a bit more on the markets Monday before the open
RickJ
RickJ’s Handicapping Picks
Skype: riccja
