FRi. OCT. 24- Be Very Very Careful

One of the wiser things uttered one of the traders at Protrading Network uttered are these words: “When in doubt and in a losing position, sell everything.” This seems counterintuitive to how most people are wired. Namely, when entering positions, most people are convinced that they are going to be correct. That better be the case else why enter into said positions? However, there are many times that one will buy a stock at, say, 20 dollars a share in being convinced the stock will go to 20.50 in minutes. Thirty seconds after entering the stock at 20, the stock remains at 20; at this point, a little doubt begins to creep in. Particularly with the volatile markets, if a stock is not acting as expected in the time frame expected, act on that first sentence in this paragraph with one modification: sell half of it. This way, if it works out, you still have some. However, much much much much more often than not, particularly in a case like this, it will not- and by at least doing something to act on that seed of doubt, net-net, you will save yourself money. The most powerful knowledge/force any trader has is his own instinct. Use it over all else; when you have that sickening feeling of doubt, rather than freezing in place, act on it and reduce your risk else the possibility of massive losses in this horrid environment is much greater than in normal circumstances.
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The stock markets across the world were ravaged overnight with prices across the world down 7%-10% in most major bourses. Trading in places like Germany were halted for a time with Russian equity trading suspended indefinitely. The fund panic selling discussed here a couple of days ago is in full effect. There will likely be a bounce off of the open. That bounce must gain traction. If it doesn’t, this may be the beginning of a cataclysmic and unimaginable event for the stock market over the next few days.

Reiterating-If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 based on direction of the market unless specified


Good-

CLF/ANR- CLF warned, but not terribly…due for a bounce so if they open down, looking to buy in an yrally

BNI- beat earnings

CB- decent earnings

DECK- great earnings

SYNA- great earnings and boosted outlook

WDC- good earnings

DV- good earnings

AFL- decent earnings

CYBS- beat earnings and raised guidance; due for a bounce

VAR- good earnings

KMP, DMND- on “Mad Money” last night

VDSI- up strongly on good earnings Wed afternoon; look to buy it thru 10 if/when it pokes thru there

CELG- up strongly on good earnings yesterday; look to buy it thru yesterday’s high if applicable

CPO- beat and raised guidance


Bad-

WFR- warned on earnings, but stock traded higher last night. Looking for A-B-A2 to upside off of open if market rallies or a short thru unch

JNPR- warned on outlook

WOOF- poor earnings

LVS- very very weak yesterday; if it opens higher and particularly if market weakens, short thru 8

STP- In a weak solar sector, this is the weakest…want to short it thru unch if it opens higher

CUZ- another REIT which closed weak

COO- closed near its low

IR- warned on guidance

ITT- warned on guidance



Earnings list:

FRI OCT 24 BEF

CPO EXC FO

GCI HRZ IR

ITT OSTK TKR

TROW UST


Good luck today.



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