Buy This “Juicy” Pullback…
The market dropped 3% last week.
Since stocks had shot higher uninterrupted since early November, there was a lot of hang-wringing as the averages finally dropped. Some investors had apparently forgotten that stocks also go down, even in a bull market!
But there was a great risk-reward play brewing for anyone paying close attention…
That’s why I’m taking a bite out of a familiar name this week. This is a stock that we’ve booked gains on again and again. But there’s opportunity everywhere you turn in this market – and last week’s pullback has provided the perfect opportunity to take another bite out of Apple Inc. (NASDAQ:AAPL).
Get all the details on this trade by watching my latest appearance on the TD Ameritrade Network:
Keep it In the Money,
Chart of the Day: Now, they’re going after silver…
The “Wall Street Bets” crowd says they’re still holding the line with their GameStop trade despite a nasty drop from its highs.
But many of them have also moved on to another big trade: Silver.
“From Jan. 19 through Jan. 26, the volume of silver futures averaged about 80,000 contracts a day. Options volume is usually about 7,500 a day,” Think Advisor notes. “But the Bastille was stormed on Thursday, when 205,000 silver futures contracts traded, and a whopping 45,000 silver options contracts traded, as well.”
That’s right, the kids are learning all about precious metals. No, they don’t seem to have any interest in buying and holding – at least not yet. For now, they’re looking to corner the market (good luck with that!) and shoot silver prices to the moon.
Here’s a look at the recent action in the iShares Silver Trust (NYSE:SLV):
That wouldn’t have been a bad looking breakout if you disregarded the coordinated attack from some folks on an internet message board. Too bad it doesn’t look like it’s going to stick…
Will the Wall Street Bets crowd ultimately succeed in this precious metals pump? I seriously doubt it. But at least some of the speculators are moving on from GameStop before things really get ugly now that the squeeze has subsided.
— Greg Guenthner