Posted June 09, 2021
By Alan Knuckman
Where Did The Money Go?
There’s a phrase you’ve probably heard me say before… It’s something I like to remind people when the markets get choppy.
Money isn’t made or lost in the markets, it simply moves!
Take a look at a map of the overall market the next time there’s a big red day, I bet you’ll be able to find a pocket of the market that is solidly green.
When traders sell off their plays, they usually don’t just take all their cash and run… Sure they might hold it for a little bit, but that money will find its way back into other trades.
This is especially true with speculation names.
The best part about this is that you don’t even need to guess where the money is going before it moves, you can simply follow the leader…
I’m a big advocate for trading what you see, if you see a sector get hot then that might be your indicator that it’s worth a closer look.
Now, I’m not saying throw your money into whatever is green that day, but taking a look at it can certainly help give you some ideas of how to play it.
At the end of the day, there will always be opportunities to profit in any market environment. So don’t get discouraged when you see red on the screen! And you definitely don’t want to panic…
Instead, take your time to evaluate the situation and plot a course of action for success!
Keep it In the Money,
Trading Tip of The Day: Is That a Tech Turnaround?
It looks like we’re seeing some constructive action so far this week…
More tech stocks are firming up near key levels and some buyers are stepping up to the plate. Even ARKK, the speculative high growth tech ETF, posted a strong day on Monday, up almost 3% after failing to get back above its 200-day moving average last week. It still has some work to do, but every bounce has to start somewhere. As always, it’s important to keep an open mind here…
When it comes to the FANG+ names, there is quite a bit to look at too.
After lagging for some time now, FB and GOOG are at their highs this week… Apple, which some people use as a barometer for tech, has been the laggard of the bunch but is finally firming up as well.
However, the Nasdaq still feels a little slippery -- This isn’t necessarily the end of the world. I suspect some bulls and bears fighting at these levels.
It’ll be very interesting to see how things shakeout the rest of the week… We could be seeing the start of a nice move for some tech names.
That would be refreshing!