Here Is A Sector With Stocks Breaking Out (Not Just Bouncing) – Mike Swanson (12/07/2018)

We saw the stock market averages dump yesterday morning, but as the S&P 500 got close to its critical 2600 level do or die buyers stepped in.  Some were robots and some were humans, but everyone was looking for a rally.

We even saw some money come into a few big cap tech stocks as they actually turned up first, but as I noted yesterday these stocks are now broken and aren’t going anywhere anytime soon.  They aren’t going to crash and they aren’t going to soar.  They are simply dead money.

This is a market now were real money can be made betting against junk stocks at the right moments and this is going to be more important for traders who want to make money to do next year as things really start to roll-over.  I talked about this in a live trading session with David Skarica yesterday you can watch it here.  Dave talked about a stock he has puts on he believes is going to collapse when it reports earnings next month.

Now even though I am shorting bad stocks with some of my money I also am long with some of my money too.  I even made two buys in my Seven Position Portfolio this week in ETF’s.

On Monday I  made a post listing three potential stock buys for you to watch.  None of them collapsed this week when the stock market dropped and two of three are up from Monday and the other one is simply still consolidating.  These stocks are SMTX, FLNT, and SCG.

Now take a look at the REIT sector as money is also flowing into it.  Check out the Vanguard REIT ETF as it closed at a new 52-high yesterday!

And while this ETF made a new high all NVDA could do is bounce off lows after dumping again.

NVDA is a stock market millstone killing people now like so many other big fad tech stocks – and crypto coins are even worse!

And while NVDA does this look what this REIT stock did.

DOC is paying a 5.09% dividend while NVDA fell over 50% from its September high.

The point is I’m not telling you to buy DOC, because I don’t believe in buying something after it has made a new high.

I don’t tell you to chase and leave my real trades for members of my private Power Investor group – who have access to my Seven Position Portfolio among other things.

What I am telling you is the stock market is changing.  Old fad leaders are now laggards and money is going into defensive sectors.

The era in which someone could buy any random stock pumped on TV and expect to make money without a game plan or strategy is over!

That’s why I like talking with Dave.  He does real research and work to come up with his trades and that’s what it takes to make money.  You can watch the discussion we had yesterday on this blog post here.

I think it is time to arm yourself with the single best stock trading pattern I have ever used I call The Two Fold Formula.  And you can choose the small bonus option and get into my private Power Investor group.

Grab it by clicking here.



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