Happy Monday everyone.
Yesterday I screwed up the Scott Belsky link to his forecasts and so here it is.
Onwards…
Let’s get right to this weeks first Momentum Monday of the year.
As a reminder, Marketsmith (by Investor’s Business Daily) is now a sponsor of the weekly show. All the charts you have been seeing in the videos and will continue to see are from Marketsmith. They are offering my readers a three week trial for $19.95. Click this link if you would like to try it out.
You can watch/listen right here and I have embedded the show on my blog…
In this weeks episode I cover all my worries just to get the out of the way. I really liked Charlie’s post ‘$29 Trillion and The American Psyche‘.
Ivanhoff’s summary thoughts are below:
I am not going to make any specific predictions. What I am sure of is that the year will be full of surprises and that the crypto markets will continue to be way more volatile than the stocks markets. More volatility means better opportunities for those who know how to manage risk and more headaches for those who don’t. There will be thousands of three-to-five-day 10-20% moves and they will all start the same way.
The last few days and the first two three weeks of every year stand out with big mean reversions. Some of the worst-performing stocks and sectors suddenly wake up and attempt a powerful rally from the bottom of the ocean. We caught a glimpse of this last week. Chinese stocks, which were some of the dogs of 2021, had a big 5-10% jump across the board on Thursday. More often than not, these end up being “dead-cat” bounces that fizzle quickly but while they last, they can deliver for the prudent short-term speculator.
At any other time of the year, we are better off looking and trading momentum stocks that are close to their 52-week highs. They allow to trade with the established trend (which means trading with an edge) and offer much better risk-to-reward opportunities. But in this brief window at the beginning of the year, the pumpkins can become Teslas and the rockets from the past year can take a break.
With all this in mind, I want to share some interesting trend data as we start the year …
The trend is your friend:
Owning the biggest tech stocks by market cap has been an astoundingly good trend and trade ($QQQ FTW) :
As always, here is this weeks Stocktwits 20 Momentum Lists a good place to start to find what is working.
Have a great week.
Disclaimer: All information provided is for educational purposes only and does not constitute investment, legal or tax advice, or an offer to buy or sell any security. For full disclosures, click here.
