The stock market has come off of its highs so far this month and also bounced off of its 50-day moving average on Friday. That was no shock as I mentioned this key level before the open on Friday in a post. We have a Federal Reserve meeting this week on Wednesday and the market usually has a volatile spike right before or after that meeting. The market futures are up this morning so it looks like we are going to see the spike INTO the Fed meeting. That would setup a high risk of the market starting to fade again by the end of the week. But all of these potential moves must be put into context with the big picture on the technical analysis price chart of the S&P 500. I talk about that in this video update.
In my view the best things to buy are not the S&P 500, but the sectors and asset classes outperforming the market, because if you want to beat the market you want to be in the things beating the market. Think gold, silver, and mining stocks.
If you are new to stock trading the best way to learn is to heavily engage in it and then disengage from time to time to learn from what you have done and regroup. Now is the time to grab my book Strategic Stock Trading.
And if you are looking to get into serious options trading tonight Steven Brooks is going to hold a live webinar on his amazing options system. To reserve your spot click here.
-Mike
