Those who follow the markets may have noticed that the last two days have been, well, shitty. Four times as many losers as winners yesterday, and twice as many today. My ‘watch’ portfolio of about 30 strong stocks was down all 30 yesterday and 28 of 30 today. These are all strong companies and strong stocks, mind you. Here we have September as historically the worst month of the year for the markets, and I was up almost 15% during the month. And I’ve given it all back in the first week in October.
So, investors: the sky aint ‘a fallin’. Stop sellin’ already!
I only trade fundamentally strong companies and stocks, which means the company must have a solid track record of good earnings, stock price patterns that are sane with respect to those earnings, and score high with reputable analysts that aren’t merely shills for the investment bankers.
So, once I have my fundamentally strong companies, I use technical charting analysis to know when to get in, when to get out, and where to set stop losses. There’s a lot to this — more than you’ll ever even imagine unless you actually do it — but I like it because I learn something just about every day.
OK, so for those of you who take to schattenfreude, y’otta love these two disasters. I was actually in the black on both of these just two days ago, both on option contracts, and now I’m almost more than 40% down in both.
Here we have Unit Corp. (UNT). As you can see, I pick fundamentally good stocks. I began trading this in May. From $36 to $56 in 4 1/2 months (83%). Since the $50 support level didn’t hold (see the two previous bounces off $50 in September), I’m hopin’ that support at $48 will hold, as it did three times in August. If not, and I should know tomorrow, I’ll be gone.
And now for Noble Energy Inc. (NBL). $32 to $48 since May. There’s support at $41 (see mid August), but it’s only one bounce. On the other hand, the stock traded just below $41 earlier in the day before rebounding and closing a full $1 off it’s low for the day. But if $41 doesn’t hold, this stock is fired.
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