The U.S. Stock Market Had One Hell of a Ride
If you haven't been paying attention to the stock market the past two months you may need to do a double take.
The Big V
Just as the market broke key technical levels and broke down lower, putting us in "bear market territory" after falling 20% off the highs.
BOOM!
Just like that all is well in the world again as we have rallied nearly 15% to start the year.
How do you even trade this?
In the end we sort of got a capitulation bottom as volume did rise and spike to the highest level in over a year on that final down day before getting that big green candle.
The market preceded to rip back higher as fast as it dropped lower and now we find it bouncing of the 10 day moving average after a healthy gap lower.
I will tell you one thing - I am certainly not trying to short this thing. However I'm not 100% in love with the long side. I suppose as a straight risk-reward trade you could try a long here with the 10 day as the stop loss and Tuesday's high as the first profit target. You better have the time to pay attention though.
Published by ScaredyCatGuide
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I'm surprised the bounce has been so high since the Dec 24th lows. Still, I suspect that the market is going down, down, down soon enough.
Yeah, I hear you. Apparently we keep getting proven wrong. lol
Yeah... if you bought all the Cannabis Stocks on Christmas Eve you would have made a 100% return easy
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I literally keep telling myself the past 6 months to buy them on a pullback and then forget :-(
I buy and sell 10-20 shares every few days and easily make $100 a day. .... almost $1,000 a week. They are extremely volatile.
There will be massive crashes on certain Cannabis stocks if they miss earnings estimates next week. You should be able to pick up Canopy, Cronos and Tilray for a lot less.
I need to pay attention to the earnings. Hell, I may gamble on a put option or two for any potential misses.
Imo this is only the start, it might not break now, but I wouldn't give this huge bull market much more time before it pops... Probably in 2023, I heard a large portion of student loans are going to default that year... And sooner or later the US will have to stop printing the amount of money it's currently printing... let's wait and see... I wouldn't short or long that, I would try to go to each stock and see where I could make money, I heard netflix was a good stock to trade, don't really know since I like to trade the crypto market
Yeah, I'm wrapped up in crypto or my real estate investments so the stock market has been lacking my attention of late. Student loan debt is 100% the next debt crisis for America. I'll have to keep an eye on it for 2023.
I think the ever increasing stock buy back programs from major corporations keeps giving this market an underlying bid. There were several more big ones announced today.
Sooner or later this consumerism that we have will slow down, we can't be buying forever, we can't be printing money forever, or the money will become without value! We need to stop this whole debt system we got going on... if not then the whole thing will crash... Let's see the next couple of years where all of this will go...
We live in a world with finite resources in a society that keeps pumping money to generate more product consumption... we only have two option, either we stop using so much, or we use the earth until it no longer is able to support life!
Dividends and buybacks...That's actually the problem in crypto, we don't have any buybacks or any dividends, we don't have money being pumped 24/7 by adoption or large corpotations, we only have normal people taking loans to invest, traders removing thousands of dollars from the market and Eth ICOs cashing out because they are running out of funds to live... I know this will change, I know some cryptos that are going to pump the market 24 7 with money, but it will take some time...
Scaredycatguide!
That has to be the best name for crypto and stock analysis I've seen yet. :)
Thanks! I figured it was great for the space.
One thing that has gotten me thinking is the virtual start of the next election cycle and the government will strive to do as much as they can to maintain the strong economy. This may act as a put to the market and its valuations over the next year. It will be interesting to see ho Companies are able to remain resilient with all the headwinds about to take place this year.
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