There’s just no rhyme or reason to the market these days…
China, Puerto Rico, Greece, Russia, Iran, oil, gold… you name it. And it’s making a mess of the market.
The Dow fell 200 yesterday. We’re down another 90 today… after challenging historic resistance that’s given way to downside many times in the past. Unfortunately, foolish bulls just don’t pay attention all the time at nosebleed levels.
While I’d like to say we’ve bottomed out, we haven’t. We could easily test June lows of 17,500 before we even begin to see signs of an end. Even then, we’re still overvalued.
The worst is far from over.
But there are still news-related opportunities we can’t ignore.
Yesterday, for example, LifeLock Inc. (LOCK) was destroyed on Federal Trade Commission news that LOCK did not fulfill obligations related to a 2010 settlement. But the claims raised by the FTC are related to the past, not to current business practice. The impact on growth should be small, in our opinion.
All we want to do here is trade a bounce off oversold, over-extended conditions and walk away. We’re not looking to invest here.
We’re just looking to trade this, take our money, and run…
Consider buying just the LOCK stock up to $10.