BROADCASTS.com

\nTim Reazor
\nChief Investment\xa0Strategist
\nNorAm Asset Management
\nYou\u2019re expecting the market to blow up any day now\u2026. You\u2019ve loaded up on puts and you\u2019ve shorted all the high fliers. \xa0And what do you have to show for your efforts\u2026 a market that for the most part finished where it started today. \xa0Yes, stocks were soft and internals were weak, but come on! Where is the mass destruction? Where why isn\u2019t NFLX at 100 already?! \xa0 Read on my bearish friend.
\nThe market doesn\u2019t care what you want \u2013 it\u2019s a market \u2013 it\u2019s not your friend \u2013 it\u2019s a cold and bloodless entity. \xa0It often times doesn\u2019t make sense. \xa0Take Monday\u2019s action \u2013 the Nasdaq futures we\u2019re plus 40 heading into lunch, reversed to negative territory and closed higher. \xa0 It makes no sense \u2013 and here in lies my point \u2013 don\u2019t guess directions in a market as fickle as this one. \xa0Again, read on my bearish friend.
\nMost markets after selling off for some time will retrace back to the mean or to resistance. \xa0That resistance can be a key moving average \u2013 think 8, 21 or 34 period exponential or a 50-day simple moving average. \xa0After they hit these key levels they will then reverse lower and continue their downward march. \xa0You\u2019ll want to construct your short trades around these zones of resistance. \xa0If you jump in too early you\u2019ll most certainly be feeling the heat. \xa0You\u2019ll also want to use smaller size incase you get caught up in a relief rally.
\nIf all of this sounds to hard or nauseating do keep in mind that cash is a position. \xa0If you\u2019d like some guidance on how you can make money in this market shoot me an email. \xa0We\u2019re utilizing specific techniques for our clients designed for this market environment.
\nIf you\u2019d like a more in-depth explanation of what is working please watch my video from this past weekend – \xa0http://noramassetmanagement.com/wp-content/uploads/2014/04/Meet-Now-4-11-14-6.40-PM.mp4
\nBack to the subject of what to expect when you\u2019re expecting. \xa0If you\u2019re expecting markets to go lower and you have an aversion to risk you can still participate. \xa0By risk averse I mean less risky than shorting stocks or buying directional puts. The easiest way to be a bear in the market is to buy TLT which is the iShares 20 year + bond ETF. \xa0If markets are going to continue lower TLT will continue to go up.
\nHere\u2019s what to expect from TLT in the near term. \xa0If markers push lower TLT will most likely clear current resistance at $111 and head north of $113. \xa0If markets are still heading lower TLT will consolidate at the 113/115 level. \xa0If the correction is severe enough \u2013 TLT could challenge last spring\u2019s high of $124. \xa0Don\u2019t bet on this. \xa0Take the trade in stages and make it prove itself along the way.
\nAbout NFLX \u2013 there is a strong possibility that NFLX will rally to its 8-period exponential moving average on the daily chart which sits at $141. \xa0NFLX is currently trading at $331 \xa0– then again this market doesn\u2019t care what I think\u2026.
\nBest Regards,
\nTim
\n 
\nThe information presented is for educational and entertainment purposes only.\xa0 Opinions and information expressed are based\xa0upon information considered reliable.\xa0 However, factors are constantly changing and should not be relied upon. You need to do and verify your own research. \xa0
\nMoreover, no reader or listener should assume that any information or discussion presented serves as personalized investment advice from NorAm Asset Management, Inc. or from any other investment professional, and is not an offer of solicitation for the sale or purchase of any specific securities, investments, or investment strategies.\xa0You need to have your own, individual investment advice suitable for your personal situation.
\n\xa0