Tim Reazor
Chief Investment Strategist
Noram Asset Management
Needless to say we did not jump back into the market today with directional plays on stocks or with my ETF strategy. (I’m writing this on Wednesday evening) What we did get was stocks, bonds, yen and gold all going down. It’s unlikely that all four will be lower when the market closes on Thursday. So what is an individual investor to do?
Sit and wait… it’s your best plan. There is no need to guess and place bets. Simply wait for your signal. In the shop here at Noram Asset Managment where I’m writing this missive – I’m noting leading stocks that are pulling back to support in low volume. Here’s a tip that has served me well during market periods such as this one. Look for leading stocks bucking the trend; resisting the markets pull lower. The early growth names are the ones I’m after in regards to the last point. A couple of weeks ago CMG fit this bill.
On another note I was asked today in an email how I make money in markets like this one. The writer asked me if I was 100% in cash. The answer is no. When the market is undesirable for directional plays I execute my options strategy for clients.
The strategy involves selling calls or puts on stocks that meet very specific criteria – at very specific levels. With the strategy I employ I enjoy about an 80% success rate. It’s not complicated – options traders tend to make things way more complicated than need be. It’s one of the best ways I know how to derive income on a weekly /monthly basis. It also comes in handy in markets like this one.
If you’re curious about my process or want to know how I can help you make weekly income please email me or chat me up on twitter – Tim@NoramCapital.com and @TJReazor
Best Regards,
Tim
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