This is How Stocks Bottom
There’s an infinite number of ways stocks could eventually find their low. It can be slow or it can be swift, but measuring this sentiment reading along the way should help us determine when it’s time to start buying.
There’s an infinite number of ways stocks could eventually find their low. It can be slow or it can be swift, but measuring this sentiment reading along the way should help us determine when it’s time to start buying.
In this update we’ll track and setup the trends in the indices, Commodities, and sectors as the FOMC prepares to hike rates at the next meeting.
The corners of the market that continue to have sure-footed clarity are mainly the downtrends. The key is to find the downtrends that are most actionable. For now — at the index level — it is the NASDAQ and Russell. Let’s take a deep dive into these patterns and how you can identify these to continue to take advantage of this environment.
Facebook is a great example of a stock that got destroyed on earnings this quarter. The downside momentum is still ongoing, and for that reason, I’m jumping on this trend. However, that’s not the only opportunity I see. Let’s look at Disney, another stock in the communications sector, that has post-earnings opportunity as well.
The typical, trending swing trade we’ve been so used to may be dead, but that doesn’t mean there isn’t opportunity. I have my eye on several shorts, in addition to premium selling opportunities via both earnings and covered calls. Let’s check out some key moments in time together in this video!
In this video, we look at the 60 point rally higher today after the FOMC. Is this the start of the next leg higher or a head fake?
In this video, we look at the 60 point rally higher today after the FOMC. Is this the start of the next leg higher or a head fake? We talk about both sides of the trade and where we might go in the short run and over time. We also look at a trade idea for Friday in the SPX.
Vixpiration down, OPEX ahead by 2. What’s the call? Here are a few ideas that I like, going forward.