Looking for the Incredible Hulk

• As the meltdown continues - the S&P is now down 170 straight points (18%) and has been down 6 of the last 7 weeks, I am getting more and more invested for a counter trend rally (this week?). A hint of a potential rally appeared Friday as many stocks underneath the surface performed well despite another -100 day for the Dow. That being said...it is important to have stops in place just in case. There is a significant rally ahead...when and from where is the hard part.
• The reason I am accumulating on the way down is because I sense the Incredible Hulk may show up and things get so green, so fast there will be no way to get in without prices having already moved so much.
• I bought some April calls on the S&P 500 on Friday.
• The parade of bearish guests on CNBC is simply amazing to me. I know this is a scary time, I feel it too, but can every bear be so right for so long without being tested at some point?
• It is very weird seeing the majority not being able to imagine things will get better ever again. I am not being a Pollyanna, I see the negativity...and the reasons for it that is causing the incredible media coverage all over, I read it all day every day just like you do. I just wonder if the worst case scenario that is now so widely discussed is the most likely outcome of if prices at least reflect much of the reality already?

A Good Trade - Defined

Good Trade Defined - When making trades and reviewing your positions, it is important to remember that the results of any 1 trade can be somewhat random. I know that may seem crazy to some of you but there is simply no way any of us can know exactly which trades are going to be winners ahead of time…otherwise, we would never make the losing trades! The important thing to remember is the analysis and the execution of your trades over time. Nobody has all winners…how we handle the losers make a big difference in our performance. Ideally, when taking a loss it not only frees up our cash, but it also frees our mind to move on to much better opportunities. Sometimes, we just need to move on and get the loser off the screen. When taking a loss, it can still be a good trade…defined as: solid analysis and good execution (remember, they can't all be winners...selling at a small loss can be a great trade...saving you from further losses and allowing you to re-deploy the capital in better ideas. From now on...Change your definition of a good trade from “winner” to “solid analysis and execution.”