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Monday, January 9, 2012

Buy stocks only if your day trader: TZA, TNA, FXE, FAZ, ERY, TYP, VXX, TVIX

This days bad news is considered good news for the US stock market. Till now not a single economic data suggest its safe to buy individual stocks. FED & ECB has spoiled this market with printing free money. As soon as the series of economic data comes out, talks about free money comes into market.

ECB is launching fine tuning operation which it did on Dec 20th, 27th, Jan 3rd. So the market is expected to open high unless there is bad news from France industrial production.

Today, China December Trade Surplus $16.5 Billion Versus $7.8 Billion Forecast with import coming at 11.8  compare to 17 which was expected.  But since there is not enough demand to take consume that production, lowering interest rate isn't going to help China. China grew at faster rate compare to US or Europe.  This is global market. Right now supply is high while demand is low. There is no shield which can protect US, China or any emerging market from Europe recession. US market is just a step away from crashing big time with any one event, whether its Greece exist, Italy default or France downgrade. Its not a recession in Europe but it's Global recession.

It's not safe to invest whether your bullish/bearish trader long/short term trader. 

Invest only if your Day trader and you can watch this market without interruption and don't keep your money invested overnight.

There are many momentum stocks which you can take advantage of quick 3-5%. Buy on Dip and sell on rally.

If you are investing $ 2000 at a time, with $9 trade commission, your stock needs to rise 0.45% to make profit which is easily achievable. Don't invest more then $ 5k or the chances of losing money is very high. With 3% gain, you can still make $51 gain in one day, and end up atleast $500 up in month with few wrong move. If your account is below 25k, then your allowed to day trade 3 times in 5 business days. So in one month, you can day trade 12 time. So use your day trade carefully. Don't use your margin money to buy anything.
For bullish sentiment: FAS, ERX, TNA, FXE
For bearish sentiment: FAZ, ERY, TAZ, TYP, VXX, TVIX, EUO

Remember don't leave your money overnight in any stock.

US whole inventories (10 EST) is expected of 0.5%, higher will be bearish, lower will be bullish.

It doesn't matter any economic data anymore, if possible avoid this crazy market.

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