Monday, September 15, 2008

The Plan

The plan for tomorrow is simple: wait for the buying opportunity. Once panic really sets in and we get some extreme oversold readings, it will be time to buy. That's what my studies of past panic events tells me.

Most likely, the time to buy will not be tomorrow. It's fine to make small position trades just in case there is an early move (as I did with USD) or you want to play for more downside, but the big bets should come later.

I have thrown out my watchlist and trading setups and am focusing on leveraged index ETFs (SSO, QLD, USD,DIG, etc), along with some commodity names.

I go into more detail on my strategy, with comparisons to a past "panic" event in the Trade Report.

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