Wednesday, January 20, 2010

Ugly day for stocks and gold

The "sell the news" effect continues. Stocks such as IBM go down even on decent earnings, as are stocks with not so good reports such as CSX.

Right now I am telling myself "don't be the hero," wait for the dust to settle. The selling squall will likely pass, but that is never a certainty. I'm looking for an entry point in EEM and/or IWM on the long side, but again, will wait for the dust to settle. Fast markets with wide swings tend to be a dangerous place for relatively slow moving position traders like me.

Gold is looking weak in here. I tend to be long term bullish on gold, so didn't take the trade when I posted about a possible rally failure a few days back. GLD 99 would be a downside target if I were short.

Long SPY, TLT

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