It Pays To Do Your Homework
While my initial reaction upon seeing the
futures quote on Bloomberg this morning was surprise (lately the market has
never had follow through), my next reaction was that absent any significant
news, my gut tells me that the market may be shaping up for a reversal which
will offer intraday traders (HVT) some great
trades. Longer term, my view has not changed, reality is setting in, there will
not be some miraculous recovery as predicted by the same talking heads that
never saw the debacle coming in the first place.
Turning to some stocks to keep an eye on, Tyco
(
TYC |
Quote |
Chart |
News |
PowerRating) has announced earnings and that they will not be splitting the company
up. As of now, 5:40 AM PST, the stock is down about $4. I plan to be trading
Tyco very aggressively on the opening, as well as throughout the session. If you
rewind back to early February when Tyco first started announcing all of their
problems, the stock traded extremely well for a couple of weeks. The stock may
just be shaping up for another round of extreme volatility.
Another observation that I found interesting was that the major financial TV
programs are beginning to talk about gold and gold stocks. Frankly, I do not
know how to view this. Now that it is mainstream, is my original thesis still
intact? Or will this new fixation with the next "gee whiz" investment
only add fuel to the upward move? Either way, it pays to do your homework. It is
very nice to see your hard work ultimately be recognized. I trust many of you
saw the merit of gold stocks a few months back.
Key Technical
Numbers (futures):
S&Ps |
Nasdaq |
| 1115-16 | 1339 |
| 1103 | 1320 |
| 1097-98 | 1300 |
| 1085 | 1288-90 |
| 1074 (contract low, very key) | 1270 |
| 1067-70 | 1247 |
| 1051 | 1238 |
On Friday, the last piece of the four-part series on Single
Stock Futures (SSFs) will appear. This week I will be discussing some
of the strategies I plan to employ. These products have suddenly opened up
several more approaches that will not only complement my existing style, but
also offer a few stand-alone strategies. Click
here to see the first 3 installments.
As always, feel free to send me your comments and
questions. See you in TradersWire.