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Let’s Get Ready To Rumble

photo by Walter rodriguez

After last week’s roller coaster ride in the stock markets, I look forward to more of the same. The volatility was off the charts (well almost) as the VIX showed through the week. With this much movement in any given stock, the possible gains are amazing. On the other hand the loses could be too much for most of us to handle.
Going into this week, we need to be aware that we have still not seen the bottom. As a matter of fact I heard some say on Friday that last week was the turning point, but I beg to differ. If any of my readers here follow me on Twitter, you would have seen that at around 1:30pm when the Dow was up about 300 points, I responded to another who said that the markets were doing great and would continue for the rest of the day. My response was to get ready or to start selling because the tide was about to turn. I had a feeling that the DOW as well as the other markets were about to go bad.
Feelings??? I know I tell my readers all the time that you feelings have no place in the stock market. I wasn’t referring to my emotional feelings, instead I was talking about the vibe of the markets. After you spend enough time trading within the markets, you start to sense when the tide is turning. Add on top that my knowledge and experience tells me that there is a lack of confidence on Wall Street.
As we go into this week of trading, you need to hope for the best, but expect the worse. Make any trade you do wisely and have your exit strategy ready. Watch the trend, keep an eye on the technicals and leave you emotions at the door. Get ready for another wild ride.
So in the immortal words of the WWF (World Wrestling Federation)…”Let’s get ready to rumble”.

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