Naysayers, mark your retreat now. That’s right. It had to be said and I’ve been saying it since Tuesday. The bottom is in. You can bet on it. We have the Dubai bid and the Fed bid in keeping the market above key support levels that were scaring away the speculative money. Now there’s a huge short interest building in the Yen and the Fed rate cut of at least 0.25 is in the cards.
Double bottom…
This is critical. A key downtrend reversal through the double bottom you see on the chart above means we’re very likely out of the woods.
Watching and waiting…
Data is king and we’ll be getting a lot of numbers before the December 11th meeting. Of those numbers the most important is the jobs report coming out on Friday December 7th. Wall Street expects less than 100,000 jobs added. I expect even less than that. The lower the number the more likely the Fed steps in.
Trading this market…
You have to understand that speculating is risky to trade this market. Appreciate that most of the downside risk has been taken out and we’re going to more than likely see a great rally to the end of the year. Historically this is a very positive time of year for the stock market.
What should you be trading? I like Nintendo, Amazon, Target, Garmin, nVidia and GameStop. I’ve been buying them all on these downward swings.
Sleeping at night…
Like any rational person, you probably worry about your investments! Not to worry. Consider hedging with puts or selling some of your shares on rallies. Buy shares back on weak days and offload your puts. You’ve just learned how to maintain portfolio insurance!
Good luck trading!