Tweet, Tweet! Here’s a New Buy…
Twitter is on the move this week!
I jumped on a new trade in this popular social media platform just before it started to take off.
Remember, it’s all about price – not politics! This stock was 10% off the highs and bouncing at an important support level. You don’t need to chase any crazy, overextended stocks in this environment when we’re getting quality setups like this…
Again, I’m not trying to be too smart — but I’m also not getting silly, either.
I’m always focused on risk-reward. It’s about the strategy as much as the stock. That’s also why I felt comfortable buying Apple at a “discount” several weeks ago…
Check out my TV appearance below and get all the details on my Twitter trade, plus more market takes!
Keep it In the Money,
Chart of the Day: Squeeze city!
We’re beginning to see some serious signs of euphoria in this market.
No, I’m not calling a “top” – that type of commentary is rarely helpful and almost never accurate. After all, bull markets can last much longer than many people expect. But the market froth we’ve experienced over the past several months is beginning to crescendo to levels not seen since the late 90’s dot-com boom.
“We don’t see any signs yet, concrete signs, of a medium-term trading top, but this type of volatility leads us to believe that similar to 1999 to 2000, you could get a 10% to 15% pullback at any time,” one strategist told CNBC earlier this week. “From what we see right now the level of speculation leads us to conclude the typical retail investor is as bullish in the aggregate as we have seen in over 20 years. With valuations where they are now, that is the recipe for potentially rapid, albeit temporary setback in the market.”
These quick corrections have yet to show up in the major averages. But we are starting to see some stocks begin to break.
Just look at the coordinated short-squeeze attack on GameStop Corp. (NYSE:GME):
I won’t bore you with all the details – which I’m sure you’ve seen plastered all across financial media. But one glance at this chart is all you need. This isn’t “normal” action – and I expect the wild moves to continue to the next hot stock until the market punishes the herd with a sharp correction.
— Greg Guenthner