Tim Reazor
Chief Investment Strategist
Noram Asset Management
Let’s devote this week to taking the guesswork out of your investing or trading. Instead of placing bets or developing theories lets interpret what the markets tell us and then take action.
I’m writing this on Sunday evening and sitting with Isaac T Dogg taking in the futures action and wondering – where is the big sell-off? There was a quick flush at the open of the futures session but things have appeared to stabilize. So what does this have to do with you?
Did you load up on puts on Friday? Did you go short because the news was sensationalized? If you did you’re sweating tonight. If the markets rally in the morning shorts will have to cover, which further dries up supply, and pushes markets higher, which just exacerbates your problem. Now, I will say that we’re a long way from the open and who knows what the rest of this week will bring. My point is that no one knows the trend. It’s hard to go short or long when you’re guessing.
If you don’t know the trend simply manage your positions. Trim when you have to, stay the course when it’s prudent. Don’t add and don’t start new positions until you know the trend.
If you want to know the optimum time to sell your stocks listen to this workshop I taught this weekend. I cover selling, when to let your stocks ride, the best time to enter the markets and a strategy that will lead you to victory in 2014. Here’s the link – http://www.thewallstreetshuffle.com/
Speaking of strategy- the trend will turn back up again and you’ll want to be ready. As Isaac and I were doing our research this morning over coffee I uncovered several stocks that look incredibly bullish.
I’ll share one of the four that I’m considering building a potion in. Under Armor (UA) has of the most bullish charts of all the stocks I research. It’s in the upper 1% fundamentally and technically – meaning it’s beating 99% of stocks out there. Beating in what you ask? It possesses higher quality earnings and sales and institutional support than 99% of stocks in the market. It has the impetus to go higher – and when the market turns – it’s these types of stocks that flourish into big winners – if the story of the stock is still intact when the market does turn higher.
Make sense? In more simple terms, UA is a superior stock compared to all the other stocks – except for the three others on my radar – that I research. When the market turns higher this could be a big winner.
Don’t get excited… the market may not turn higher for some time… something could throw UA off track that has nothing to do with UA – say congress for example. This is why I wait. My process is disciplined from start to finish to give me an edge and reduce risk every step of the way.
You can know every stock that is going to go up in 2014, but if you don’t buy them properly and handle them properly – then knowing the names of every stock that is going up in 2014 is just useless information.
I talk a lot about my process in my class this weekend – please give it a listen. I hope you enjoy it.
If you have any questions please email me or talk to me on Twitter. Tim@NorAmCapital.com and @TJReazor
Best Regards,
Tim
