Skill is successfully walking a tightrope over Niagara Falls. Intelligence is not trying. - Anonymous
Bulls got no mojo. The selling pressure continues to swamp the bids and the markets just keep fading lower.
Apple’s AAPL +0.52% down after trying to open higher, and I think we’ve got to let it sit for now before doing another set of tranche buying. KLA-Tencor KLAC -0.08% is just about the only tech stock up with any gusto today, and you’ve got an Nvidia NVDA to counter that rally anyway. Google’s been surprisingly steady given its ugly quarterly report a few weeks ago which took the mojo out of that name. Groupon? Still not a buy.
And how about Facebook FB -0.05% ? After a strong quarter and proof of accelerating mobile monetization, the stock is back down below $19 a share this morning, after having popped above $24 immediately after the report. FB’s long-dreaded lock up expiration is upon us and I’m to buy back some of the calls calls I sold after the blow out quarter over the next couple days. Looking at the June 2013 expirations with strikes from $20-$22.
But, let’s be clear – as I’ve been saying over the last few weeks, let’s not rush back into getting overly long. Perhaps we could navigate the tight rope that is the market right now, but it’s smarter to stick with our long-successful game plan of patiently scaling in and out of some of the fastest growing, most revolutionary stocks on the planet, and shorting welfare-queen companies whose days of profiteering are numbered.
Nobody knows when this selling pressure will end, but knowing our strategy, having hedged/shorted/trimmed before this selloff came gives us the ability to now continue to execute on that playbook.
One of the most important lessons I drive home here is the importance of patience whether you’re a short-term trader or a long-term investor. Don’t let your worries drive you to make mistakes.
Trading and investing is never easy, but with a steady-as-she-goes approach based on rational, cut-throat analysis, you can navigate these types of swings to big long-term success.
Daredevil Nik Wallenda Walks Tight Rope Across Niagara Falls – June 15, 2012
Cody Willard writes Revolution Investing for MarketWatch and posts the trades from his personal account at TradingWithCody.com, which is not affiliated with MarketWatch. This article also appears on TradingWithCody.com. At time of publication, Cody was net long Apple, Google and Facebook. Follow Cody on Twitter at twitter.com/codywillard.