Markets are different EVERYDAY

There is something I thought about today while I was in the shower singing "Everyday is a new day baby," which Stevie Wonder, I believe, would have praised. Anyways, that song is true about business in general and the market specifically, since you have to treat today significantly more important than yesterday. If not you are not respecting the participants in the epic battle of making money then you will ultimately lose dineros.

No one wants to lose so how can you keep your edge above the pack and all I can figure is respecting your opponents and putting in a hard days work - whatever that is defined as.

But there is accumulation of knowledge that experience teaches as the days turn to weeks then to months and ultimately years. It can provide guidance for todays decision but you have to take the matter for what it is and not what it was.

Fundamentally Sound Stocks that can be bought on dips

GROW IPSU UNG FNF LMC NBR ROSE

But these are gambles though because when they are cheap, they are cheap for a reason.

I was wrong

Won't be the first time.
Volume was lower yesterday.
And things are just that bad out there so no need in being a hero.
So those are my only two things I will have to avoid in the future.

A Bet

The market has hit at least a temporary low.

Today I bought
GOOG PCU FCX ROK INTC ADM NBR NCR MSFT SSL and PDN
and
Wrote a covered Put on Citigroup

Tomorrow will either sink the market into oblivion if for some reason Citigroup and Merrill report something that reeks of bankruptcy because the market is already reeling and anything that's surprisingly worst is all it will take to move it down significantly. Which is why the market didnt zoom today or at worst cover the sell off on Friday.

It is waiting for tomorrow. The people that anticipate, like me, have gotten in today. If the market indeed has had enough of the sell off, expect a plus 300 day tomorrow or throughout the week.

I remember my GS loss which is very much like tomorrow's setup so I didn't go in guns blazing but did put on some trades because I feel the risk/reward is there.

Of course, someone will say that it isn't but this is my blog, my money, and my experience talking.

The new California Gold Rush

First it was Orange County, now it is the entire state which is sinking in debt. The state will be a possible countrywide harbinger of the banking situation.

Short all CA bank stocks even though they are already down considerably.
PFBC, FED, MPG

The market needs a psychologically good follow

through day tomorrow to have a healthy bear market rally.

Yes, we are still in one till proven otherwise. But the transports rally today lends support to this weak market.

Shoot first

ask questions later in regards to holding stocks that are down.

In regards to shorting the market...anything that looked strong. RIMM, AAPL, GOOGL come to mind or some IBD highfliers such as SNCR, PPD, MIDD.

This market may be the mirror opposite of last year. We will see about that but nothing big. It's too late to short heavy and it's to premature to go long. Ultimately, the thing to do if you don't have a pulse on what is going on is wait.

Wait.

That is exactly what I couldn't put into words

It's funny but everytime the market goes down we hear the amount of money the company has available, even I used it as rationale to buy some cheap uranium miner, but the truth of the matter stocks will go down regardless of what looks to be a healthy balance sheet.

Mr. Cramer earlier today sums it up surprisingly well: "But we don't buy stocks because things aren't going down as fast as we thought they would. If I want cash in a company, I will own a bond."

I know I have been focusing on currency of late

but it is something I think is worth exploring as governments are looking to alter their reserves as well as follow the trend of the stronger economies.

Today what is interesting is the Mexican Peso that has been strong of late. I think the top is in with this currency because of the decline of their oil fields, the lurking instability in the country, and ultimately an economic slowdown spurred by the USA.

Want to play gold stress free?

Buy GROW.

It was admittedly an IBD favorite till the stock cratered. Unfortunately for the pessimists gold, silver, platinum, oil, and natural gas are ramping which will lend credibility to an already sterling reputation that the leader of the organization already has, Frank Holmes.

Until he writes a book like Peter Lynch did, his company's stock value will ramp along with the secular bull market in commodities.

Country Risk and questions?

I noticed that there are catastrophes worldwide that effect a country's currency. Is it prudent to buy a few dollars of their recently depressed currency and bet on things stabilizing? Sure there will be a few losses, but wouldn't the wins overcome complete government overhauls?

Like Israel when they had that minor skirmish 2 years ago.
What about Pakistan currently?
Now Kenya and the instability there?

Additionally, did revolutions peak in the 20th century?

Or should we just stick with gold?