Number one rule of all the successful traders and investors in the market….know the trend. The trend is now down. If you can handle shorting or puts, get in there and make some dough as we are headed for an all-time waterfall. But I dont think that’s your MO. So do the accumulation thing. Buy in 20% chunks as your decision is confirmed by the stock increasing in price. And if it goes down 5%, get out and wait. This is no place for amatuers right now. A lot of smart money is waiting this one out. And they are smart! Some of the smartest plays are not to play!
GDX is probably a good play long in this market.
Keep this in mind…US unemployment is 6.1%, CA unemployment is 7.7%, the globe is headed towards a recession and showing no reversal, home equity is being devistated and most companies are cutting back on spending. Many companies will be posting earnings in the next 2 months. I am betting the news will not be good. How will the market that’s already not very happy, react to this news??
