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It appears re-valuation has started. LOOK OUT!
Re-Valuation
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The stock market. The over valued stocks are falling. I even got stopped out of QQQ.
That's what happens when you trade with stops.
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I checked this morning. Yesterday was an OK day. Today I gave back those gains. Even my Canadian stocks are down. I have a very small portfolio. Overall it is up from a year ago. I'm betting we are going to see double digit inflation during the biden years so stocks will be up. I remember a doctor whom I worked with. He told me that you could tell when someones stocks were down as they always said they were there for the long haul. As long as the dividends are greater than bank interest, I'll stay
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I do not trade with stops; I invest with stops. I let my winners run. I put trailing stops on my investments to limit my losses on the down side.
I keep money in all indexes so I can measure the performance of my stock picks against the indexes. Yesterday I got stopped out of one stock. Today out of several including the QQQ index (Nasdaq-100).
Trailing stops keep me from riding the market or a stock down. It protects my gains.
I only wish I had more access to a database I could do my analysis on. Most are geared to traders not investors. So I just due the data from the 4 indexes. Then pick which stocks I am going to apply those statistics to for trailing stops.
Anyway my undervalued stocks are up. So I am about one-third in cash.
In the financial world the term "Trade" is used to generally refer to the entry of or execution of a equity or derivative transaction. It can be used to refer to an investment transaction as well as any other type of equity or derivative transaction.
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So did either one of your post have an actual point?
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I’m not sure I’m seeing any sign that they are falling yet. The qqq is 95% of its all time high, S&P 500 is 98% and the Dow is 98 %. Why do you think they are falling?
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I have been wrong before.
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When you gamble there are only two winners. In casino its the house in the stock market its the Broker. Never put more on the table than you can afford to loose. Right now my stocks are bouncing with a very small gain at the end of the week. Since I cannot afford to loose much, my portfolio is small. I lost half of my deferred stock account when obama was elected. $50,000.00 that I could not afford. I learned a valuable lesson. A low interest draw is better than a stock loss and never trust a democrat
Yes, but if you didn't get the the "actual point" just try reading again, perhaps more slowly.
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As if I did not know that is what happens with trailing stop limits.
The was no point to your post.
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The top 7 companies make up 43.888% of the Nasdaq 100. So it is one thing to get stopped out of one of these companies. When one is stopped out of the Nasdaq 100 aka QQQ that says something else. These 7 have an average P/E ratio of 190.
These 7 also make up a large part of the S&P 500. So if one gets stopped out of the Nasdaq 100 it is a sign to watch out for the S&P 500. If that happens to fall below the big boy's algorithm it will trigger a huge rebalancing of all kinds of ETFs.
IMO when that happens down comes the market into a large correction or worse.
I know for me when I got stopped out of the Nasdaq 100, I took profits. I went from almost 100% invested to about 66% invested.
If I am wrong I will miss out on some additional profits. If I am right I will have saved a lot of capital to be reinvested when the bottom turns.
These 7 also make up a large part of the S&P 500. So if one gets stopped out of the Nasdaq 100 it is a sign to watch out for the S&P 500. If that happens to fall below the big boy's algorithm it will trigger a huge rebalancing of all kinds of ETFs.
IMO when that happens down comes the market into a large correction or worse.
I know for me when I got stopped out of the Nasdaq 100, I took profits. I went from almost 100% invested to about 66% invested.
If I am wrong I will miss out on some additional profits. If I am right I will have saved a lot of capital to be reinvested when the bottom turns.
Great Idea!
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In 2004 orI bought a MPS 3 player by SanDisk. After a week or two I was able to turn it on and off. Sometimes I could get music to play. Very frustrating. Younger folks told me about about this contraption that Apple Computer had introduced a year or two before. A MPS 3 player that was “intuitive.” I bought one.
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