Online Stock Trading | Wall of Worry grows, mortgage/housing worries continue as oil tops out

Wall of Worry grows, mortgage/housing worries continue as oil tops out


Filed Under Market Commentary |

Credit woes as well as earnings disappoinments weighed on stocks this morning.  Oil hit a new high as Airlines tanked.  A sea of red continues even at 2pm EST. 

I’d like to point to Oil, it has topped.  Today’s reversal is signalling to me that we’ve seen the top of oil prices for the foreseeable future.  We may try to rally to new highs but this reversal on a gap open will hold and we will not see new highs.

Take a hard look at your holdings for example:  ASIA RRST both need to be cut or trimmed signficantly.  We could rally or fall through the 200dma.  At this point, we don’t know but what we do is prepare for the worse here.  Cut all laggards that are falling on heavy volume.  I would not cut loose anything that is higher today at all.  I would not be adding or starting any new position here. 

Credit market will continue to take the front stage.  Just do not panic, prepare yourself. 

“Every battle is won or lost before it is even started.” 

Do your DD and position yourself with strong, growing, innovative companies.

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