Consistent with the up-and-down nature of this market in particular, here are two short and three long trading ideas. I cannot emphasize enough how important it is to be ready for anything. I recognize you might respond, “Well, c’mon Chess, you can ALWAYS say be ready for anything in the stock market.” And you would be correct. However, when you have a V-shaped bounce like we have seen over the past six trading sessions off of a breakdown, there really is risk all the way around.
Much like when you play an undefeated football team, you cannot afford to make the same mistakes as you would against a mediocre team. Similarly, when you are facing a challenging stock market, you have to push yourself to wait for triggers on setups, respect how quickly the tide can turn, lock in gains, and cut losses quickly.
See my notes on the charts below for more details about why and where I think these plays are potential trades.
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Nice!
Interesting suggestions. Believe it or not, I’ve owned a small position in PIR for about 10 years. What’s even better is I made more on PIR than I would have on an index fund, even though PIR hit something like $0.12 at one time.
Good turnaround story in PIR