Stocks carry over their strength from Monday, as expected, with the Dow up nearly 100 points today. We expected the bounce to last a few days, but the question is, is this a tradable bounce where we can put more money to work in UPRO, TEX, FWLT, FCX, and WLL. While these stocks have definitely come down to cheap levels, in ” The Mission”, we are trying to be serious about the stocks we own. That means, sometimes, that the only work to do – is to do nothing. Especially when we are now in one of two camps – a bull market gradually on its’ way to recovery and buy the dips or, a longer term bear market with deceiving rallies. We could try some fancy strategies here, like buying 7$ June 16 calls on BAC, which are cheap but, then again, right up against the 200 day moving average. Good for a trade and a fortuitous bounce, but I think the best thing to do is to continue to wait for clarity. Keep the black powder dry. Your thoughts?
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