Trying To Catch A Poisonous Spider

One of the first rules of trading is never try to catch a falling knife and that’s what I tried to do with the purchase of the financial spiders last Friday. Today’s news on Fannie and Freddie should have rallied the financials, but traders sold into the news. I didn’t have a good fuzzy feeling and bailed out of my financial spider position. I managed to pull off a 0.93% gain, but it was only a tiny position. You just have to go back to what’s working which are selected biotechs, ag and of course black gold.