Dow Down 666 Points

I’d buyback the calls I sold and sell calls again. It’s a good way to generate income/yield from your holdings. I’ve only been forced to sell twice, and both times I was able to buy back later at be better price.

It’s impossible to follow the whole universe of stocks. I’ve decided to invest is fewer companies, but use more methods to do it.

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Ho Ho Ho!

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Have you liquidated all your holdings yet?

Nope. But I like to instill some fear into people. :smiling_imp:

So evil… :rofl:

Could be more like 1994. How was 1994 like?

But a repeat of 1987 is also possible. Good thing is that neither 1994 nor 1987 preceded a deep recession. Therefore, no worries about RE

What happen in 1987? I am still a boy.

Found this on Stocktwits. I think the message is S&P500 6month SMA going below 12month SMA is STFR?

As a 30 year old boy back then you should know a thing or two…

“I cannot tell you how rare a market condition this is – that yields are rising into this risk pullback,” he wrote in a note to clients Friday.

Rosenberg cited how bonds rallied during the financial crisis in 2008 when the market fell and during other big corrections.

“But not this time. This rare occurrence of bond yields rising even as stock markets decline was a feature in 1987 and 1994,” he added. “What these periods had in common was Fed tightening concerns, jitters over economic overheating and an ever-flatter yield curve. One of these years had a huge correction and one had massive volatility and rolling corrections. Pick your poison.”

In terms of the “huge correction” reference, he is referring to the “Black Monday” stock market crash when the Dow Jones industrial average dropped 23 percent on Oct. 19, 1987.

Do you prefer 1987 or 1994?

Doesn’t really matter if it’s 1987 or 1994. What matters is this: they are both inside the 18-year long secular bull market from 1982 to 2000.

I think we are in a similar one right now. We are at around the 4th inning.

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Up up and away!!! :rofl:

https://bclund.com/2018/02/08/into-rough-seas/

I believe we are currently in a “market mechanics” type of environment.

Does this mean the market is due for a major crash?

Absolutely not. The market could as easily rally 5% from here as it could drop another 5%. I have no insights into what it will do, but I can tell you what I think it has the potential to do in the near-term.

It has the potential to make a move greater than you’ve ever seen before.

This type of move won’t respect your EPS estimates, valuation models, or even my beloved technical analysis – and you don’t want to be caught on the wrong side of it.

So, what should you do?

Well, you don’t have to do anything. Sometimes watching from the sidelines is the best play.

But, if you have some dry powder, one thing you could do is get out your shopping list of stocks you’d like to own and put in some stupid bids way below the market.

What shouldn’t you do?

Don’t buy leveraged products.

Don’t go on margin.

Don’t buy at a price you’re not comfortable with.

Don’t buy a position you’re not comfortable holding for a while – and through more volatility.

And most important, don’t use up all your cash, in case you have to do the same thing again.

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Bottom should be reached by August. When bottom is around or close, which stock should we be prepared to buy? I can only identify one stock to buy, Amzn. Maybe have a limit Oder to buy Amzn at 1001.

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Why August?

He doesn’t know what he’s talking about… :laughing:

Market correction averages 5 months. I give it one more month due to summer slump.

Bear market averages 14 months. So my current prediction is an average correction

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As long as the ghost of Mueller is hanging over the president this market is going nowhere but down.

Are we now in the Trump slump. Predicted a year ago?

I did for a while and now it’s my sushi