The Beat Goes On
- Posted by Frank Zorrilla
- on October 10th, 2013
“Betting on disasters sounds so intellectually astute except that it rarely works out. White swans are more plentiful than black ones”. @CirrusDriver.
The futures are up big for whatever reason, but the fact is, historical stats show that bounces occurred on a consistent basis after the market takes a huge hit like it did on Tuesday.
Due to the state of the market the watch-list is light in names, which tells you that there is probably not much to do from a swing stand point. Focusing on bounce plays with etf’s or select momo stocks that have moved to an extreme is probably worth your time if you feel you need to do something. Playing the extremes is probably the favorable style that will work in this environment., for example $LNKD yesterday trades down and fills the earnings gap to the penny and bounces almost 10 points off that level. $AMZN is probably worth a shot of the 50 day, or shorting fear which is something we wrote about yesterday.
These are what I consider very tight set ups that will trigger if they break yesterday’s high. On a regular trading day I would indiscriminately take every trigger because you just don’t know which one will be the big winner, you might have an idea but in the end you don’t know.
The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.
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Frank Zorrilla is the founder and chief investment officer of Zor Capital LLC.He began his Wall Street career 10 days after his 20th birthday when he became a Series 7 licensed stock broker. More »
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