The Market's An Emotional Wreck - Now What?

The Great Unraveling continues... January 30, 2015 Archives | Unsubscribe     The Market's An Emotional Wreck -- Now What?   The Great Unraveling continues Death metals march lower Plus: Losers average losers   Greg Guenthner coming to you from Baltimore, MD... The stock market's got a nasty case of PMS. And there's nothing worse than an erratic market with violent mood swings - up a few hundred points one day and down two hundred the next. That just makes it so damn hard to trade. You try spotting a trend when your charts are babbling gibberish out of both sides of their mouths. So I'm in a rotten mood today. The only thing helping to brighten my day is that commodities are looking a hell of a lot worse than stocks right now. That's right-- the really bad charts belong to commodities. Let's get to yesterday's scorecard, shall we? Gold: down $30. Silver: down 7%... on the day. Platinum and palladium: both down 2%. Copper: trading at prices last seen in 2009. Why does the commodity implosion make me a little less depressed this week? Because my trades don't look like this: As I told you back in December, you'll see more lows, more bearish headlines--and more ways to make money as the Great Unraveling continues. What's the Great Unraveling, you ask? Well, it's not the oil crash. Or the weakness we're seeing in silver right now. It's a bigger problem. I believe we're seeing the end of the commodity "super cycle" that began about 15 years ago. "I'm more convinced than ever that commodities are in the 'rinse' part of the cycle," I explained last month. "And if you don't grasp that basic fact, you could lose your shirt if you have a lot of exposure to them. Whatever the culprit-- whether it's slowing growth in China, India, or other emerging markets-- the writing is on the wall. The Great Unraveling is upon us..." The mighty metals are on life support. Call Kevorkian. Oh wait, you can't - he's dead. Doesn't matter. Point is, it's taps for these guys... Remember, the great commodity boom took more than a decade to play out. Prices skyrocketed across the board. But what goes up must eventually come down. Gold and silver lost their wings in 2013. Copper went into a death spiral late last year. And I don't have to tell you what's happened with oil over the past six months... Despite these horrific charts and some steep losses for investors, some of the top questions I'm getting these days always come back to commodities. That's right--everyone wants to try to catch the falling knives. Is it time to buy oil yet? Should I take a chance on it? No. Absolutely not. Unless you're a daytrader or a very, very short-term minded swing trader looking to play a quick mean reversion, you should back off all of these falling knives. Remember our rules about "buying the dips." Just because a stock has dropped does NOT mean it's putting in a buyable dip. So when you're looking to buy a dip, don't go chasing after a stock with a chart that looks like a train wreck. That'll just put you on the fast track to trading hell.         This will blow your mind [LEAKED VIDEO]   If you are looking for a way to collect real income from your investments...   Then you need to check out this "leaked" video.   By the way, some people are making over $10,000 per month using this... but... the weird part is it's a safe and conservative strategy. It's so safe, in fact, even the federal government says you can use it in your IRA!   ==> This will blow your mind [LEAKED VIDEO]           Rude Numbers Targets, Predictions and Wild Guesses   $45 buys a barrel of crude today. Oil is actually up almost 50 cents so far this morning... $2.66 s the price of natural gas today. That's awfully close to a 3-year low... 225 points were added to the Dow Jones Industrial Average on Thursday. The chop continues... $1,262 is where you'll find gold futures this morning. The yellow metal is up about $7 in early trading... 2,001 marks the spot for S&P futures before the morning bell. After yesterday's rally, stocks are down big to start the final day of the trading week...     Rude Trends When to Buy... When to Sell   "I believe you missed one more option on a bad trade," a reader says "Don't be afraid to buy into the same trade when it is down. It dilutes the loss and allows you to sell at a lower trade price. When you average the loss on your original buy and your later buy the recovery is sooner." Gotta disagree with you there... There's no reason--none whatsoever--to buy a trade that's not working. Now, plenty of investors will probably disagree with me... but I'm talking about trading here. The only time I will add to a position is if it's working in my favor. If it ain't going up, I don't want more of it. When you average down on a losing trade, you're doing two things: 1. Buying a stock that's moving lower and will likely continue to move lower in the immediate future. 2. Allocating more of your trading dollars that could be spent on other opportunities to a losing trade. You know the old saying don't throw good money after bad? Well, trader's have another...err... less polite way of saying it: Losers average losers. Got it? [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   FIVE "Poisons" Approved by the FDA [urgent] Have you Seen this Crazy Public Law 110-343? World's Most Valuable Tech Companies for 21-Cents?     BE SURE TO ADD rude@agorafinancial.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. 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