As far as my title comment, I just have a few thoughts. At such low levels, we are on the brink of one of the worst years in the stock markets history. I don't think anyone will dispute that fact. Now, from here if we see a drop of 30% or even 20%, then we are looking at a major disaster. So, why do I say buy a gun? Well, for those long term investors out there if you are not willing to slowly buy up good stocks with a long term outlook, then you might as well buy a gun and wait for the world to end.
Now, just for clarification, I am NOT and will NEVER be solely a value investor. However, I do realize that buying and holding some companies for years at a time is a great way to protect and grow wealth. With that in mind, any lower days from here on out I will be slowly buying up good company's with the mindset to hold them for at least 2 to 3 years or more. Note: Make no mistake however, I have made a majority of my money (over 80%) actively trading stocks. There is no doubt that you can make buckets of money day and swing trading and I will continue to use these strategies as my main source of income and wealth.
I don't have any charts or opinions on the market direction short term and therefore am holding both index longs and shorts. As far as commodities, I still think they are way, way, way over-sold and now is a great time to start buying them up. Just look at the CRK and you can see that my target over the next couple of months is around 600.
Oil just keeps on sliding straight down. This chart doesn't even show the 2% plus decline today, but the point is clear. These securities just don't trade straight up or down. Look at what happened when Oil was around $130 and up. People were raving about Oil going to $200 "easily" and now its nearly $100 off its highs. Ironically enough, now people are talking $30 or even $20 a barrel short term. Notice the huge channel that at least needs to be tested.
I bought more calls on OIH today which already show a nice profit with the late day rally. I think this will easily make its way back to $100 or more if Oil firms up anytime soon.
Ford looks like a great short idea here. A 100%+ run up in a matter of days and this looks like a prime candidate for a pull-back. The risk-reward is more than appealing short term.
