Today is the First Day . . .

January 4th, the first trading day of 2016, and it's off to a rough start. I want to make several observations here, and give you some trading and investing ideas. These won't be in any particular order, but they will be worth it.

  1. The Dow Futures showed that the market (The Dow 30) would open down 320 points. It's been down almost 500, and it may hit that before the day is up. For those of you rolling the Dow, this presents some entrance points, maybe. I'm just not sure yet. Look at the DIA (An ETF that represents ownership in all 30 of the DJIA). Consider the January 15th (the 3rd Friday expiration date), at the $170 strike price. Put it in for a double, after working out the suitability and the details with your broker.
  2. Again, China is in ther news. It's market is slowing down. It's not stopped, just slowing down. Funny, we would clap for such a growth rate. We're stuck at 2% (Under this Liberal and misguided administration) and they're down to 5% from 9%. Think on these numbers. If China would adopt pure Free Market ideas, they'd excel and be the toast of the town, but like the scorpion killing the helpful frog, they can't help it. They're communists.
  3. China's economy is not set up  properly.  Ashley Webster on Fox Business said, "They're not up to snuff."
  4. This is no way to start the New Year, but there are buying and trading opportunities everywhere.
  5. The bigger, and possibly longer-lasting news is in the Middle East. With Saudi Arabia cutting all ties with Iran, and our President playing footsies with these thugs, it does set in motion a few negative things. The world needs stable oil prices. And more important than that, everyone needs a continuous and open-ended supply.
  6. It is not time to panic. Things will settle down. In fact, barring other bad news, it could be tomorrow. It would be good to practice-trade this "Rolling Dow" Strategy. If you're a member of WIN's TDT, and have access to TRAIL, you'll see the numbers on a real trade.
  7. China is in a self-induced turmoil, but Russia is even worse. They have a tremendous appetite for cash, and they will get it by selling more oil.
  8. Gun sales are up. Look at SWHC. It's off a bit with the market sell-off, but if the president rattles the cage about Gun Control, sale will go up. 2,100,000 guns sold between Thanksgiving and Christmas (the day after each data). We Americans know what we want, and we don't want Government Tyranny. Hillary is on the wrong side of this issue.
  9. There is talk of FIAT expanding. Rumors are they have their eye on General Motors. That is amazing and sad.
  10.  Focus on the story of any stock you want to buy. America is truly a miracle, and when times get tough, billions of dollars will find it to our shores. I believe in the Free Markets. To me, I'm a Stock Market GUY, not a Stock Picker GUY.
  11. Make sure you take advantage of several of the FREE Book offers we have going. Check on wininc.biz and/or on wadecook.org. We wish you well.
Stock MarketWade Cook