As I said a few days ago, I was concerned about the overall markets. Today really confirmed that feeling. Even though it was no where near the Black Monday back in 1987, it still hurt emotionally.
There are still ways to protect your portfolio in this market:
1. Sell all stock and move into cash.
2. Sell your losing stocks, hold onto your winners and be partially in cash.
3. Hedge your losses by investing in other investment vehicles.
I am going to highlight one of those other "investment vehicles" right now. I have been watching 
the foreign exchange a.k.a. Forex. One currency is catching my eye and that is the British Pound. Why? If you click on the chart to the left to enlarge it you will see a couple of things. 1. It appears to be breaking out of a cup with handle formation as it broke past $205.00. 2. There has been a lot of buying of the ETF as seen by the high spikes in black as seen as "trading volume" at the bottom of the chart. 3. There is talk that the US dollar is going to drop in value and this benefits the Pound. I'll bet you are probably now asking, how can I buy currency? Well, you don't have to buy it. You can buy the ETF (exchange traded fund) going by the symbol of FXB which stands for Foreign Exchange British Pound. Yeah, I see the one drawback - it is at $205, but this one is to hedge, or "diversify" your portfolio. I know I am going to be buying the Pound on Monday.
the foreign exchange a.k.a. Forex. One currency is catching my eye and that is the British Pound. Why? If you click on the chart to the left to enlarge it you will see a couple of things. 1. It appears to be breaking out of a cup with handle formation as it broke past $205.00. 2. There has been a lot of buying of the ETF as seen by the high spikes in black as seen as "trading volume" at the bottom of the chart. 3. There is talk that the US dollar is going to drop in value and this benefits the Pound. I'll bet you are probably now asking, how can I buy currency? Well, you don't have to buy it. You can buy the ETF (exchange traded fund) going by the symbol of FXB which stands for Foreign Exchange British Pound. Yeah, I see the one drawback - it is at $205, but this one is to hedge, or "diversify" your portfolio. I know I am going to be buying the Pound on Monday.
One stock that looks very promising is WBD. I am going to attach a picture and see if you can spot the pattern similar to FXB.
Good luck trading.
JD
For more advanced traders:
Bear Call Spread ARD 70/75, HURC 60/65, OMCL 30/35, SII 70/75, SRCL 55/60, WFT 70/75
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