The stock market is gapping up this morning, but it has gapped up several times this week and just faded.
I believe we are in a serious corrective phase in the markets – and that is why the S&P 500 is trading below its 200-day moving average.
This is also why I did not think it was a good idea for people to buy the election gap up last week and said so before the open even in defiance of Wall Street bulls (anyone who would do that on TV would be banished forever). All it did was bring a wonder day that ended in a mess by the end of the week.
Now I do think we can get a bounce into Thanksgiving next week, but until there is a real panic washout this market is going to be be prone to rallies that go nowhere and crashes in individual stocks.
There are three stocks that have been said to be must own stocks over the past few years.
These three are Facebook, Nivida, and Apple and on some days they seem to be the only stocks people ever talk about, because all three are big cap tech stocks that had been major market leaders that never seemed like they could ever drop. That is until now.
Facebook of course has been in collapse ever since it reported earnings in July.
And starting in July Nividia too began to lag the stock market averages, but it didn’t really roll over and dump until October.
Look I like to buy stocks that go up.
Right now I am long stocks in a sector I like with some of my money, but I am also short stocks too – meaning I have bets against some deeply troubled individual stocks.
I wish I could put all my money into long stock positions and get rich tomorrow, but we are not in market like that anymore and so I am positioning myself accordingly by betting against junk stocks with a portion of my money.
When the stock market trends like this you have to adapt to the trends if you want to have winning trades. The good news is when bad stocks crash the gains come really fast.
Now what is happening is Apple too is now a broken stock.
Look at the chart.
Yesterday Apple closed below its 200-day moving average.
There is no longer any strong leadership stocks left in the Nasdaq.
Money has been flowing into defensive stocks in the past week – such as drugs, food, and utilities as the big cap tech fads have faded even more.
The idea of an election rally turned into a false hope.
But junk POS stocks are crashing sometimes overnight.
These stocks are moving now so fast that after today I am no longer going to promote this offer after today, simply because the entry point is just about gone for these trades.
When it comes to trading all I care about is making money and that requires good entry points in a market like this.
There are a small few things that did go up Wednesday, but I don’t care about owning a stock like Apple just to be a fanboy.
The company STOPPED REPORTING HOW MANY IPHONES IT IS SELLING!
When it comes to trading if the best way to make money is to go long I’ll go long, but if it is to bet against junk stocks then I’ll bet against them with some of my money.
It’s as simple as that.
And if you are interested in doing it too just click here and target pos stocks.