And If You Look Out The Left Side Of The Window

We know we have one retired commercial pilot on the reader list so we will be respectful. We all have been on a plane when the pilot announces that "If you want to see the beauty and the splendor of the yada yada yada, please look out the right side of the plane."

So picture yourself on a plane traveling north from the equator and you are flying on CMA, Crazy Market Airlines. The pilot has just announced, "If you look out the right side of the plane you will see the turmoil and strife going on In Italy, Greece, and Spain." We all go over to the right side of the plane and while we are looking we miss the decent economic reports in North America.

The real problem is when everyone returns to their seats Monday Morning, The pilot is going to say "...and if you look out the left side of the plane you will see the parliament of whores who cannot address their very ugly debt situation." Now if you a passenger on this air plane, you order yourself another scotch and put on the life saving Bose Noise Reduction Comfort 15 Headphones and wait for a soft landing.

Well, nest week there may be a plight plan change. Ya see people in first class (The Big Money guys like Hedge fund Managers and MF managers) will want to see out both sides of the airplane in the holiday shortened week. Now the only way the pilot can accommodate the First Class folks is to ask the autopilot (High Frequency Program Trading) the best way to keep them happy. The end result is a logical BARREL ROLL.

My guess is we are in for real rough week of trading. The market is IGNORING all the good news and looking for confirmation that we will not have a debt solution in The US, the Italian Treasury Auction will happen on Friday so games could be played on the European Theater on Thursday, and with treasury rates creeping next week we will here more talk about contagion in the US banking system. All this makes for a rough and tough week ahead. Look for a 4% drop next week. That pegs the DOW at 11,300 for the close next week and the S&P at 1,180. (We don't see the broader market getting whacked as bad as the DOW).

So what do you do in a week like this.

Go back to basics. Make sure your stops are in place and respect the importance of discipline. Sell that stock that is down 8%. Look for a stock that is bucking the trend. We entered in to a position in FIO Fusion-io, Inc. engages in the development, marketing, and sale of storage memory platforms for data decentralization in the United States. Its platforms enhance the processing capabilities within a datacenter by relocating process-critical or active data from centralized storage to the server where it is being processed. The company's storage memory platform includes ioDrive and ioCache products; directCache data-tiering software; ioTurbine virtualization software; and ioSphere platform management software. It sells its products through its direct sales force, original equipment manufacturers, resellers, and other channel partners in the United States, the United Kingdom, Germany, Japan, Hong Kong, Singapore, Korea, Australia, Canada, France, China, Italy, Denmark, and the Netherlands. The company was formerly known as Fusion Multisystems, Inc and changed its name to Fusion-io, Inc. in June 2010. Fusion-io, Inc. was founded in 2005 and is headquartered in Salt Lake City, Utah.

We liked it and read all about the flash drive performance and their 10 TeraByte Flash Drive products and we like what we here and how quickly their products are being adopted.

A terabit is 1 trillion kilo bytes. My average e-mail to you is about 500 Kbytes. So they are working on flash drive products that quickly receive and move 2 trillion of my e-mails in milliseconds. The stock has good growth no debt and a great promise. More importantly to this conversation, they are bucking the trend.

If your stops are in place and you have checked your portfolio for stocks that are bucking the trend. Friday IBD announced the market is officially in correction. I will have to see the Chart they used to make that call as we thought the volume has been awfully light to make a market correction call, but who are we to argue.

With the market officially in correction, it is time to do homework. Make sure you are committed to your stocks of conviction. If you are up significantly in any equity (above 20%), you might want to consider taking some profit. Then brush up on your market knowledge and let this crazy market airline do its thing.