Quick Patience
The
old saying "patience is a virtue" is relevant
with the market environment we are currently facing. The markets
remain event driven and what might seem to be setting up will probably
take a little longer than anticipated. This is okay, because we as
traders are extremely patient…right?
With all the layoffs in the
Airline and Aerospace groups we could anticipate that a short–term
recession may come upon us. We will have to watch the next several
weeks as it will give us a better picture as to how the economy is
responding to the the multitude of events which are currently
happening.
So continue to be patient
and if you decide that you have to trade, trade small, trade quick and
trade with stops. As we all know the markets are due for a bounce as
it is extremely oversold, but we also know that bounces die out
quickly so be on your toes.
Merit Medical Systems (MMSI)
is pulling back from its major trend and looks poised to resuming its
move. It close fairly well for today.
On the short side,
RF
Micro Devices (RFMD)
broke down out of a descending symmetrical triangle and looks poised
to move lower.
Looking at some Exchange
Traded Funds, the Oil Service HOLDRs (OIH)
tacked on 5.4%.
The WEBS-Hong Kong (EWH)
moved higher 1.4%.
And the WEBS-Germany (EWG)
gained 1.3% as it closes forming a "tail" for the week.
On the downside, the
WEBS-Singapore (EWS)
fell 11.1%.
The iShares S&P TSE 60
Index (IKC)
slipped 9.7%.
And the iShares DJ US
Internet Trust (IYV)
closed off 7.2%
Remember that all securities
are risky. In any trade, you should always reduce your risk by
adjusting position size and placing open protective stops where
you will sell your long or cover your short in case the market turns
against you. For an introduction to combining price stops with
position sizing, see Loren’s lesson, Risky
Business.
Have a great
weekend and be safe.
Greg