Call That a Comeback!
After almost three weeks of sell-off and panic, it would appear that the Nasdaq bottomed out around 11% off it’s recent highs.
However, yesterday was a completely different story. The Nasdaq rallied over 3.5% off its lows! Call that a comeback!
So, where do we go from here?
It’s going to be very important to see the reaction after Tuesday’s rally. Will tech investors step back in and send the index to new highs? Or will there be another fake-out followed by more selloff?
If we don’t see much follow through from this rally investors may lose some confidence in tech, posing a steep climb to recovery.
Now, let’s talk about the big picture here, I’ve said it before and I’ll say it again… Every time in history that the market has pulled back, it’s rallied its way to new all-time-highs.
How do 100% odds sound?
So yes, we experienced a profit-taking pullback, but it’s looking like buyers are ready to step back in after Tuesday’s action.
If we get some solid follow through after this rally then the next stop we’re looking for is new all-time-highs!
Which means BIG profits for YOUR portfolio!
Bottom line: The bulls still have a long way to go till they’re out for the count!
Keep it In the Money,
Trading Tip of the Day: Avoid The Traps
When a stock that’s been doing well experiences some sell-off, it can be an attractive buy to a lot of newer investors for a quick turnaround profit. But stocks don’t always turn around as quickly as you’d think…
Previously high flying stocks can experience downside for quite a while before they begin to rally again, and you don’t want to get caught at the beginning of a bigger dip.
Instead of blindly buying stocks simply because they’re down, take a look at the chart and make sure there is still bullish momentum behind it.
By doing this you might miss the initial leg up, but you will also avoid getting stuck with a stock that’s just started its long journey downward.
And in my opinion, it’s always better missing out on some initial gains than having to recover losses on the way back up!
— Greg Guenthner