Yesterday we saw another gap up on trade truce hopes that simply got sold. Even though the opening was big many of the popular fad stocks ended up down for the day anyway.
As you can see the S&P 500 is basically just floating above its recent lows.
I did an interview with Jim Goddard of www.howestreet.com about what is happening with the stock market. In a
Stock market bulls call this the buying opportunity of your life, but it all looks like a slow motion dead cat bounce to me.
Now David Skarica shares this view too. He did a post showing how there are actually some
Despite what is happening the masses are simply trying to buy the broken big cap fad stocks over and over again. Ameritrade just put out their
This is what they said: “Both Apple Inc. (AAPL) and Amazon.com Inc. (AMZN) entered bear market territory during the period and were net bought. APPL set expectations of lower iPhone sales in 2019 and was down 17.5% during the period. AMZN announced New York City and Northern Virginia as the company’s second and third headquarter sites, but reported a slowdown in core retail revenue growth pushing shares lower mid-month, before rebounding at month-end. Netflix.com Inc. (NFLX) was also net bought. The company had a volatile month as a third-quarter beat on earnings was offset by concerns regarding future profitability. General Electric (GE) was a net buy as the stock price reached the lowest point since the financial crisis following concerns regarding the company’s finance arm. Nvidia Corp. (NVDA) sold off roughly 18% following an earnings miss during the period, and was a net
Of course these stocks are all disasters and have simply fallen more this month. Just look at NVDA.
All of these stocks are trading well below their 200-day moving averages and are falling, but the masses don’t care, because they don’t really follow the coming trends. Instead they tend to look backwards and try to buy what went up the most last year instead of what is working now.
The thing is there are new winners now in the market in defensive sectors and stocks. I bought one last week as a new position in my Seven Position Portfolio and it went up again yesterday and is helping to push the whole account up.
I started this account right before Labor Day and while the stock market is down it is up as you can see.
Now I have an account with close to a million dollars in it and created a smaller Seven Position Portfolio to help people with smaller accounts and to make something that is easy for people to follow as it focuses on seven simple positions.
People have a big misconception that at times like this that their only choice is to sell everything they own before things collapse or to just hold and pray. In reality when market cycles change new leaders emerge to buy and that is exactly what is happening.
The masses don’t see it yet as they are still trying to play last year’s now broken winners and therefore missing the real opportunities.
That’s why this week I launched my Bear Market Power Pack to help you get into these new trends way ahead of everyone else.
To grab it click here.