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Tuesday, January 28, 2014


My plan of attack has changed by quite a bit.

I personally feel quite bearish on the markets in the next 3-5 weeks.

Honestly, I'm quite paranoid about some of the macroeconomic aspects of the global economy.

Now, I'm not personally saying that I predict a huge bear market to come along the way very soon, but I am quite cautious.

I literally dumped all of my past holdings, they were all small and mid cap growth companies.

I was burned on NUS. They are now being investigated for their business being some giant pyramid scheme in China and I lost quite a bit of cash on that investment.

It really sucks. I doubt even the insiders were in on that information and I am really still quite pissed off. The technicals and fundamentals were strong in the company and it was still in quite an uptrend by the time it lost over half its value within a week.

Insider selling was at its yearly high. I was and still am expecting a much larger market correction than the measly 3% drop we had yesterday and on friday.

I also heard we are also entering a currency crisis. I heard that major banks are going to default within the next 3 weeks, and that the stock markets are going to go into a violent downtrend trend not just in domestic U.S. securities but also all around the world.

So right now I am just scalping a few percentage points for my portfolio in order make up for some ground that was lost because of NUS.

For example, I bought GE. (I bought an even distribution of GE, KMX, NKE, KMX, and WM shares).

The recent tumultuous market activity lately has sent these 5 large cap stocks into undervalued territory, at least in a short term perspective.

I bought all these 5 stocks on monday so I am enjoying a bit of profit.

But if the currency crisis gets worse and worse, I will eventually get out of all 5 of these stocks.

I'll probably put in a stop loss order for 3-4% if these trades get really profitable, otherwise I'll just dump all these shares at limit price on Friday.

I don't know, I guess I am just really pissed off with NUS.

Although it is still a really good company with quality fundamentals, it was battered so hard because of recent news surrounding the company.

This past week was really eye-opening. I learned that random crap that you can't control sometimes happens. 

Just got to cut your losses and move on to the next trading opportunity. You can't dwell on any of it.


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