8 stocks I like for this market…
Yesterday I suggested
taking a more neutral approach to the market. Today I’ll talk a
little bit more about what that means and why I am suggesting it. Most of the
time I tend to trade with a bias — either long or short. My bias helps me to
determine the amount of risk I am willing to take on in an individual trade.
When I’m biased long I will trade long positions aggressively and short
positions cautiously. When I’m biased short it’s the opposite.
At the current time I am getting a myriad of
conflicting signals about the direction of the market. Therefore, I have removed
my bias — which had been long since the market began to advance in early
January, and am looking at opportunities both long and short with equal
willingness to risk capital.
In addition to being somewhat unclear on market
direction, I’m seeing opportunities on both sides. The market is split right
now. Recent breakouts and strong moves up can be found in names like
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KOMG |
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BECN |
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ENG |
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USG |
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On the other hand names like
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GE |
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INTC |
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WON |
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AM |
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Unless you’re an index trader, it is not
necessary to be right about the direction of the market to make money. (And if
you are an index trader, you only should be in the market when you believe you
have an edge.) Look for strength to buy and weakness to short. Once I have more
clarity, I will re-establish my bias.
*For disclosure purposes my firm has positions in
several of the above mentioned stocks.
Best of luck with your trading,
Rob
For those who may be looking to expand their
knowledge beyond just market timing, my
Hanna ETF Money Flow System utilizes the VIX in generating trading
signals for spread trades.
Rob Hanna is the principal of a money
management firm located in Massachusetts. He has spent the last several years
developing and refining methods for trading in stocks across multiple time
frames. He selects stocks using both fundamental and technical criteria, and
then trades them using technical analysis techniques.