Hot Trading Strategies as Stock Market Chills

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

The NASDAQ-100 (INDEXNASDAQ:NDX) continues to climb but if you look closer under the hood – momentum levels are all declining.

Meaning: Fewer and fewer stocks are causing the market to increase. This fact misleads the market and can only continue for so long until ultimately the broad market will take back control.

Add this to president Trump’s income tax release, plus an election year, being deep into the summer cycle, the worst earnings reports are almost due and volatility is still 3 times the historical average…

Everything is pointing to a cool off in the stock market.

But we’re not all bearish… watch the full interview demonstrating strategies traders can use to lower risk and increase profits from the market volatility.

I’ll give you a short summary – a TLDR (too long; didn’t read) as the kids are saying nowadays:

  • Lower your exposure on each trade – reduce your positions by at least half (you will still get bang-for-your-buck because of the increased volatility).
  • Become more defensive – increase exposure to gold and interest rates.
  • Buy stocks that will perform better because of COVID-19 – think work (and play) from home stocks.
  • Don’t try to think 3 steps ahead – don’t be a hero and bottom fish the banks and airlines.

Happy Trading!

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.