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October 26, 2005

Lock and load, Wed., Oct. 26, 2005, 6:05 AM

When I say that traders ought to be 80 pct in cash, what I am really saying is that the market sellers are about to rush you again -- just like they did in August. I don't know the precise timing of the next assault, but I do know you need to be ready.

That means you must be set in your defensive position. Your gun must be ‘locked and loaded'.

You must be lying in wait, preparing to see the whites in the eyes of the sellers before you fire.

When the massive sell-off begins, you need to hold your position, getting yourself psyched up to counter-attack. And when you observe the sellers getting tired, you volley back with all the ammunition you have saved for the moment.

Don't flinch. That will be your time to perform.

Your offspring will thank you for it.

The sellers have started. Last night AMZN was thrown at you. The day before it was TXN.

But increasingly there will be disappointments in either the reported earnings or revenues or in the guidance for the next quarter and into 2006. So there will be more sellers come to you like the following that were given to you in the past couple months.

Posted by Posted by Bill Cara on October 26, 2005 06:05:39 AM | Category: Cara Today in the Market