Playing the volatility
Until the next Fed meeting June 24th (or 25th?), volatility is here to stay.
* Extreme and sudden price movements
* Technical driven trading, not based on fundamentals
A common technique is to play a short term game: buy and sell at each trough and peak. That takes too much work for me.
A 2nd technique is to buy puts and calls and trade those.
I think that we should sit tight because I honestly don't see this getting any worse. We are past earnings season, consumer confidence was HIGHER THAN EXPECTED (it dropped much less than expected), and we are coming to the close of Q2.
Now is a good time to consider which stocks held fast during the recent flurry of volatility. That's a good sign of underlying strength.
I also notice something going on at Apple.
AAPL, STX, MVL - all are down. Perhaps the market is expecting bad news from the iPod. Or perhaps the market is also wondering about Apple's ability to keep growing iPod sales (not units - sales $) and PC sales.
* Extreme and sudden price movements
* Technical driven trading, not based on fundamentals
A common technique is to play a short term game: buy and sell at each trough and peak. That takes too much work for me.
A 2nd technique is to buy puts and calls and trade those.
I think that we should sit tight because I honestly don't see this getting any worse. We are past earnings season, consumer confidence was HIGHER THAN EXPECTED (it dropped much less than expected), and we are coming to the close of Q2.
Now is a good time to consider which stocks held fast during the recent flurry of volatility. That's a good sign of underlying strength.
I also notice something going on at Apple.
AAPL, STX, MVL - all are down. Perhaps the market is expecting bad news from the iPod. Or perhaps the market is also wondering about Apple's ability to keep growing iPod sales (not units - sales $) and PC sales.
posted by Andrew at
8:23 AM
2 Comments:
Andrew,
in the recent post for stop limits, you did not give a recommendation for GRP, no stop limit?
BTW, very good day for GRP today :)
for the alternative engergy stocks, what do you think about ethanol companies, e.g. ADM, PEIX?
Many thanks!
Andrew,
what do you recommend for GRP stop limit, and thanks for this pick, very nice movement today.
and what do you think about alternative energy ethanol company, like ADM and PEIX?
sorry if 2 posts pop up, as I could not find my prev post.
Many thanks.
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