Tim Reazor
Chief Investment Strategist
NorAm Asset Management
Now that the sell-off has your attention allow me to explain a few rules of the road for the time being. There are no bargains in the stock market. You don’t need the Proctor and Gambles of the world. You need cash. Raise cash. No matter how temping the Tesla’s of the world appear to you remember this one thing – it’s a trap.
I get it – you love Netflix – that too is a trap. Don’t try and catch a bottom. Guessing rarely works. You’ll exhaust your capital long before you get it right. Say this to yourself over and over the next couple of weeks – “The market doesn’t care what I think”. Remember the market can be irrational longer than you can remain solvent.
So how can you participate in this market? I’ll explain in great detail in this Saturday’s Wall Street Shuffle Radio Show. In our pre-production meeting this afternoon Danny Stewart and I agreed that now is the time to cover the best ways to sell short and become a bearish for a bit. Click here to bookmark the link – http://www.iheart.com/live/1190AM-4276/?autoplay=true to listen live at 10 AM Central. You can also book mark the show’s site – www.TheWallStreetShuffle.com
I promised you a quick note on commodities and bonds for today’s newsletter. Gold is continuing to advance. From the 1288 bottom it appears that 1315 will hold and now there is a push up into 1332. If we get and hold 1332 then 1330 is the next stop. After that gold will most likely test 1400. We’re a long way from there. Don’t guess and place long options bets now. See what levels gold holds and then take action. For the moment a move up into the 140s in GLD is not out of the question. GLD is currently trading at 127.
Crude oil continues to act well and so does our two stocks CLR and SLB. Silver hasn’t quite followed gold leads, but this most likely is only a matter of time.
Bonds are one group that I’m really starting to get excited about. 30 Year treasuries broke out today and for me that means looking at TLT the bond ETF. TLT is around 109 right now. If we clear 113 on TLT a move up to 120 isn’t out of the question. These levels depend upon the severity and length of the correction.
One more note about the radio show this weekend – I’m planning to cover what I think are some of the best trade ideas so please do tune in or listen later via podcast.
I hope this helps you. If you’d like the team here at Noram Asset Management to implement the any of the above for you contact us right away. To set an appointment email me at Tim.Reazor@NorAmAsset.com I talk stocks and markets on Twitter most days – if you’re interested please follow me. My handle is @TJReazor
Best Regards,
Tim
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