Technology stocks were in the doghouse in early April 2018.
But there was opportunity in the rubble, presenting itself both fundamentally and technically if you ignore the fear at the time.
With fears of regulations following Facebook’s data scandal, presidential tweets that knocked Amazon.com off its ledge, and production fears at Tesla with a 123,000-unit Model S recall, an on-road fatality, and a poorly timed April Fool’s prank, investors became fearful of the tech sector.Read More
Traders are often told to buy excessive fear or greed.
Unfortunately, many aren’t aware of when to actually pull the trigger, or realize when fear or greed have gotten way out of control.
But there’s a simple way to know exactly when to buy and when to sell.Read More
When Munehia Homma first created candlestick charts in they 1700s, he had no idea it’d change the way we look at stocks 300 years later.
To him, candlestick charting was meant for the rice trade.
He’d record the opening day’s price of rice, the low and the close. And over time, he’d begin to see price patterns in his recordings, mapping out repetitive signals in the price bars. He’d soon give them names, like spinning tops, dojis, and hanging man – candlestick names we still use to this day. The discovery of such patterns helped him successfully predict future direction of rice prices, giving him a significant advantage over other traders.Read More
When you pull a rubber band too far, what happens?
Eventually, it snaps back. Stocks do the same.
At times, extreme bouts of fear can send a stock tumbling to excessive unsustainable lows. Other times, extreme bouts of greed can send a stock up too much, too soon. And if we can spot those very extremes, therein lies opportunity.Read More
Oil is a fickle beast.
Throughout 2017, oil prices have rallied and stumbled more times than most of us care to remember thanks to global supply and demand issues.
All thanks to supply-demand imbalances, and hope.
However, there are two ways to spot when and where oil could pivot and turn.
One way is to track excessive bouts of fear and greed, simply by buying when others become far too fearful, and selling when others become far too greedy.Read More
The $89.7 billion man has argued against borrowing money to invest.
Unfortunately, many investors have been doing it anyway.
Greed, he says, is the primary driver of margin debt.
Then again, we all know margin-trading carries a good amount of risk.Read More