Battle Plan 2.0: Greek Debt, Market Meltdowns and Trading Volatile Markets

Thank you for all the positive feedback yesterday on the Daily Battle Plan 2.0. More coming.

Yesterday I mentioned that based on the markets many extremes there was going to be either a complete meltdown of the financial system or this is one of the rare opportunities in specific stocks that occur a few times a decade. Yesterday the first scenario was more apparent and the market averages are already 3% lower than they ended Q3.

The nice thing about trades like ^AMD^ and ^FAS^ as done yesterday is that they have 3 ½ months to see how they play out. They also provide the opportunity to trade around the positions. Meaning if AMD for example spikes higher, there’s little reason to hang around until January. Take the profits and move on.

Today the 2-period RSI of our Country Fund ETF Universe is an oversold 11.89. As you know though, we’ve seen lower readings over the past two months (twice under 4), so more selling is possible. Europe is finally acknowledging that Greek lenders are going to have to take a larger haircut on their debt (two officials are suggesting 50%) and if this is true, prices will likely need to drop further to reflect this. In overnight trading, Europe is again lower and the trend worldwide in most asset classes remains lower.

The above is from Larry Connors’ Daily Battle Plan.

To learn more about the Daily Battle Plan, click here for more information.

Larry Connors is founder of TradingMarkets.com