You Make 80% Of Your Money 20% Of The Time–And This Is Not My 20%

Marc Sperling shares his take on the upcoming trading day from his trading station at T3Headquarters. The market remains in correction mode, but it has been difficult to look for a bottom based on the intraday action. When trying to find tradable bottoms, you look for momentum and capitulation to the downside, not a grind down like we have seen. That means you should take extra caution in both directions, not looking to take big positions without conviction. The Pareto 80-20 Principle will tell you that you make 80% of your money 20% of the time, and based on my skill set, this is not part of that 20% of the time. I am scaling back my trades and waiting for better opportunities to be aggressive. We are oversold, but not extremely oversold, so I don’t think a swing bottom is in. We could get a one-day bounce or a pause, but I don’t foresee that explosive reversal trade today. That doesn’t mean it can’t happen, but it’s just not a strong risk reward trade in my eyes. Apple (AAPL) yesterday broke a major support level but is fighting this morning to open back above it. I will have my eyes on it, because even if you don’t trade it directly, it has an effect on the overall tape and can be a key indicator for the broader market. The banks also continue to present a headwind. Every rally in the sector seems to be sold, and after some of the recent revelations from JP Morgan (JPM), who can blame those investors. The industry remains dangerously unchecked and unregulated, no
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5 thoughts on “You Make 80% Of Your Money 20% Of The Time–And This Is Not My 20%

  1. Hey MARC:
    Can you please PRETTY PLEASE talk about “OVERSOLD” Hi-Beta stocks like:
    CRM – RVBD
    Thanks so kindly as i am ITCHING to buy these here !!

  2. we tried out a lower compression for this vid, but will not be using it again! thanks for watching!

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