The below assessment is provided under the disclaimer at http://TSP.Live/trading-content-disclaimer/. Always consult with a licensed financial professional before trading.
Assessment: Yesterday, I discussed in the FMA why if you are trying to force trades in this market you are having a tough go, regardless of whether you are a bull or a bear.
Yesterday, of the top 100 market caps in the S&P 500, only 27 stocks were in the green. The top 10 of those 27 were all tech stocks. Everything else was in the red. So, we should go short? Well…you can’t really do that because of those 73 stocks in the red, most were just down marginally.
OK…no benefit to going short. So we should go long? Well, if you are trading TSLA, NVDA, MSFT, GOOG, AMZN or AAPL…it does seem to be working out well. My concern is when you have these stocks which EVERYONE
So, the handicapper or someone trying to entertain an audience would be saying to BUY, BUY, BUY all those tech stocks I mentioned in the paragraph above. It gives you action and so far the strategy is working out well.
The tactician says that I might grind some profits in those trades, but the grind won’t be worth waking up one day to a sell-off and watching the profits evaporate overnight. The risk calculus right now is above average risk for below average reward. There is definitely a reward there, but there is a risk people aren’t really assessing because up to this point they have not been checked on it.
Good luck in your trades!