Stops Suck, But Part of the Game

I talk to pro traders all day. After this week they all want to kick their dogs and punt their cats when they get home. This week has been rough, and it’s only Wednesday. Charts failed, so did traders.

Charts that looked so pretty ( I took bait) ended up failing miserably. That’s the game, they all look pretty until they don’t. Stops are key, they were hit today like  baby seals looking to milk their mama.

Employment is Friday, so I don’t see the planet getting aggressively

long (or short) in front of the number. The market however, has started to liquidate energy, materials and mining. The financials are the red headed step children that watch from the other room.  They will break lower or make their case soon. Such a toxic and regulated sector. Good luck if you are long financials. I am not implying lower prices even though I am long FAZ. I am green on the trade.

Momentum names like OPEN got hit, solar names like FSLR got sold, and oil, metals and materials went to the woodshed.

I still don’t think this is a disaster yet, I think it is a a correction, maybe I’m wrong. Stops are in.

We had a really bad ISM number today, oil inventories were higher (lol, crude has been running), while inventories increase, so it’s been a good run. Congrats to those who take advantage of that layup. Crude finally came down. Ouch, a two day sell off. I like oil stocks, semi conductors bore me to tears. Apple is always good. I am long Apple as of today at $351. My stop is $344.

The one thing that will crash this tweeked, over served punch bowl of a market…is a dollar crash. And that ain’t that crazy.

P.S. I like really long walks on the beach with Lynyrd Skynyrd blasting in the background. But I like volatility more.

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