Individual Names

Posted on Jun 12 2015 - 11:26am by Sharpe Trade

It is said, that your first instincts are usually correct.

Earlier on in the year, I stated that I believed the stock market itself, was a meat grinder.  There was no clear direction on the indices.  There would be no clear direction, and that non-directional traders and correlation players would have a field day in this market.

I second guessed myself.

The first breakout we received, I thought we had left the meat-grinder behind.  But alas, I spoke to soon.

It is said, that your first instincts are usually correct.

So I tried day-trading the index futures a bit.  The results there are mixed, until finally, even my day-trading methodologies have proved useless.  Not that I have had any losses on that route.  I have not.  But there isn’t even a clear signal to take a trade to find out.

What are we left with?  What is a trader to do?

Well … if we’re going to speak of directional trading, swing traders are getting eviscerated on the indices.  Day-trading can’t even give me a signal to trade one way or another.  So what are we left with?

As stated previously, non-directional trades.   There are times when one could throw a dart at a dartboard to pick a stock, and watch it go up.  But that is not the market that we have right now.  So one could also look to individual names on stocks that don’t seem to give five figs what the index itself is doing.  Names at great valuations for longer term holds are always in style, for any market.   In fact, I have my eye on one at the moment.  It may show up as a purchase here for the Sharpe Income project before too much longer …

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