Kill Emotion Then Profit: Stock Markets Rise

The house will be voting this evening on the John Boehner plan. There are questions on whether or not it will pass. Should it pass, the debt ceiling will be raised within days. Slight optimism is keeping this market higher today. The SPDR S&P 500 ETF SPY is trading at $131.59, +0.99 (+0.76%). Many investors were ready to jump out of the window yesteday, as fears of a default spread. Always avoid emotion and trade off logic. This was the key to buying longs yesterday and maximizing profits today. Yesterday, I wrote a blog entry discussing why, how and when a budget and debt ceiling agreement would be reached. Understanding this helped avoid the fear that so many other amateur traders were swept up with. It also allowed me to enter long plays on Bank of America Corporation BAC at $9.70, Cree, Inc. CREE at $32.15 and ProShares Ultra S&P500 SSO at $51.85. These were posted and time stamped to Research Center members. All three plays are rocking it today. CREE is up 10% on the day, hitting a high of the day at $34.44 after the alert to buy at $32.25. Bank of America is trading at $9.80, +0.12 (+1.24%) and the ETF SSO, which is two times long the S&P 500 is trading at $52.32, +0.63 (+1.22%) after the buy alert was triggered at $51.85. As profits continue to pile up, it is important to recognize why and how? First, avoid the Wall Street hype and focus on reality. Ignore emotion and use logic. By doing that you would clearly understand that the debt ceiling will be raised and the markets will rally. The next step is to focus on the charts and find the appropriate buy levels. This was done on all three trades yesterday. This helps maximize profit. Gareth Soloway InTheMoneyStocks.com