| |
 Hello, Is this the final sign of the top of the market?
"Walmart to create fintech start-up with investment firm behind Robinhood"
When Walmart shoppers are potentially going to be part of the near-constant pump higher of stocks, could that be the end of this bull run?
Mike and I were pondering this question just yesterday. The markets have been on a tear since the pandemic infused drop in March 2020.
The recovery was warranted as the worst fears did not materialize. Yes, there have been havoc in parts of the economy, and the employment numbers are still quite lousy if we put them in the context of an economic recovery, let alone boom.
Pouring trillions of dollars of stimulus (printing money) into the economy has forced that capital to go somewhere. It has piled into the mega-cap tech stocks. It has piled into speculative stocks. Real estate. Bitcoin. You name it.
Any momentum class asset has won.
This reminds us all so much of 2008. NetPicks was founded in 1996, so we are entirely aware of the first boom and bust around 2000. Then another boom and bust in late 2008.
There are so many similarities right now with both those cycles.
There are also many differences. In 2000 you had vaporware in tech assets. Anyone with an idea on paper that sounded interesting and put the word "Internet" or "online" in there was worth a billion-plus.
Leading into 2008, you had a real estate bubble. Walk into a bank, show no income and assets, and get a loan with zero down. House prices were surely going to run higher forevermore.
Here in 2021, we certainly do not have these issues with technology stocks. There are real earnings. Well, at least for the largest cap portions of the market. There's plenty of future prayer going on in many stocks being pushed in the Robinhood circles of trading.
There doesn't seem to be a significant issue in real estate with loan qualifications still relatively strict, and interest rates exceptionally low.
Yes, this time does seem different. But, you get to a point where so many people look to be stock picking geniuses that it becomes a real sign of a top.
Last night I looked around on Youtube. I couldn't believe how many self-proclaimed experts there were giving hot stock tips—showing themselves placing trades in Robinhood or Webull or other apps. Everything is always a buy. Nothing is ever a sell or a short. Rarely is there even a profit target in mind.
Heck, it's enough to make us here at NetPicks jealous. We post a video discussing and demonstrating how to use a specific chart pattern to show you precise entries - and exits with risk control. We get 500 views.
Someone we've never heard of before 2020 posts a video touting their hot tip on Nio or FuelCell or (insert hot bro stock of the moment), and they get 50,000 - 100,000 views overnight.
I remember 2008. Everyone I knew was in the stock market. Many of them were making more than I was at the time despite me being fully involved in NetPicks. Don't get me wrong, there were many gains to be had, and I never complained. But, I always approached it more cautiously, and yep, missed out on some of the frenzies. A year later, most of them had wiped out their accounts, lost 80% or more, and I was out about 10% from the top.
Not because I'm a market-timing genius. Far from it. But, I've always found my trades do best with either a long-term commitment to a company that I believe in - regardless of market conditions. OR, by trading realistically, knowing markets can and will move up and down, and always learning my exit. Not at the top, and certainly never at the bottom. Plus, a willingness to go with the flow.
This frenzy will not last forever. What can you do?
This is why we have been trying our darndest to convince you to at least listen to us when it comes to trading options and focusing some of your efforts here in 2021 on ETF Options. (ETF = Exchange Traded Funds)
Nope, you're not going to hit 500% home runs trading ETF options.
Yes, you can hit 30% - 100% gainers and always no your maximum risk on a trade-in advance.
And, surprise, surprise, actually have an exit plan in mind that usually keeps you in a trade for a shorter timeframe - call it 3 to 5 days on average. Sometimes more, sometimes a bit less.
This current mania will not last. When it breaks, all of these stock trading personalities will disappear like they always do. Instagram. TikTok. Youtube. Twitter. Discord. Mark my words, most of these faces that are littered all over these platforms touting the next hot stock will disappear. Cycles repeat.
Who will be left? We think you if you genuinely learn how to trade and not buy into the fad of the moment.
ETF Options will work in bull markets, bear markets, and everything in between. They are realistic, set up to be consistent, and work when everything else seems to break.
Why not commit to learning this new skill now? Join us in our live webinar tomorrow, Thursday, January 14th @ 12pm Eastern (New York Time)/ 11am CST/10am MST/9am PST.
Go Here - Join Us Live In The Market Thursday - The Formula For Trading ETF Options
We're going to share our exact trade plan. We'll show you the exact markets we trade. You get our hot list of ETF stocks.
We will even show you our Options Trading Checklist that tells us, and now you, exactly how to take the best setups and what options strategy to use.
Go Here - Join Us Live In The Market Thursday - The Formula For Trading ETF Options
Rather than chasing the next pump (and eventual dump) stock, why not take the time to learn a strategy that will work not just in the moment but for years to come.
I hope to see you there.
Great Success,
Mark Soberman NetPicks Options Trading
|
| |
What Goes Up.....Will Crash Hard - Are Your Prepared?
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment