Cave's Picks 9/24

BGZ - Hold

Looks like general markets is going through a small sized bounce.  I'm inclined to hold my inverse ETF here and see if there's more selling pressure next week.  Given the Dow, S&P500 and Nasdaq broke through its six week 'chop zone' or flag pattern yesterday, I'd hold onto any short positions initiated before this train wreck sell off.  As I mentioned yesterday, gold and silver is a sell.  It has now gapped down two days in a row.  It is technically battered and beaten.  Long term prospects of gold and silver seem to be ok but its just not worth holding in the near to intermediate term future.

And given the volume yesterday was enormous, bottom fishing at these levels is not recommended.  Predicting a market bottom will usually send you straight to the poor house.  Just remember this, oversold can get sold even more so buyer be aware.  And for those who must bottom fish, I recommend to never bottom fish growth stocks in these type corrections.  The market dynamics is different during a market correction and a market uptrend.  Growth stocks trading at multiples prior to the sell off are not required to trade at those multiples now.  So "oh this stock is cheap" usually means it will get cheaper.  If you're gunna bottom fish, then bottom fish a true value stock.  Companies that make diapers, canned foods, toilet paper, those kinda stocks, NOT semiconductors, networking gear, internet porn, oil/gas, commercial building equipment, clothing retailers, all those are no no's ... good luck.

Yeah lets see if they turn this market over and smack it down to close the week here.

Real interested in how the final hour turns out today.  The market has been a real mess the last several weeks.  I finally closed out my DGP and SLV positions yesterday.  I have a feeling I won't be touching those for awhile.  I've been on the short side for a few weeks now nickel and diming when an opportunity arises. 

As of now, I'm not so inclined to close my short positions or inverse ETFs just yet.  I'm wondering if this sell off will retest the 8/09 lows.  I guess we'll find out soon enough.

For disclosure purposes I'm in SQQQ, TZA ... short CRM, FOSL, TDC and RAX.  TDC has been giving me nightmares on the short side.  Looking to cover this as soon as I can and reallocating those funds to some easier prey.

DGP and SLV positions were closed yesterday. 

Comments are always welcome in my threads