MY SINISTER GAMEPLAN FOR MONDAY
Here's the script: Tomorrow is most likely going to stink. I am seeing a lot of people who think the gap down (more than likely we'll see a gap down unless something transformational happens by the time I wake up tomorrow) should be bought. I don't think it should be bought. Neither do I think that it should be sold.
There is an art of inaction that I feel a lot of traders need to learn. I can always tell the guys who have been doing this a long time from the guys who haven't by their need for action. Most individuals get into this line of business for action. And most individuals end up breaking themselves as a result of that very need.
Those who learn to control and harness that need - finally realizing that taking no action actually is an action - are the ones who have taken one step closer to being able to realize success in the business of investing, speculation, whatever you choose to call it.
I am not sure if we will turn around by mid-week. I will tell you mid-week. The market loves to tell you what it has in store for investors. Most participants enjoy the sound of their own voices a great deal, which doesn't allow them to listen to the voice that actually matters.
My plan: same plan I would have had if the market was going to gap up tomorrow or open flat. I have a list of stocks I would like to get short should they behave a certain way. I also have a list of stocks I would like to get long should they behave a certain way. I will be watching those stocks, along with the ones I currently hold for any relevant clues as to their future plan of action.
What I won't be doing is hastily selling out of positions. What I won't be doing is hastily shorting stock in an effort to make gains so I can feel better about myself as an investor. What I won't be doing is trying to pick a bottom that isn't there yet.
I'll be waiting for the market to tell me what to do next, as it always does.
