Profit From The Next Major Stock Market Correction – ETF Daily News
George Leong: The stock market continues to want to edge higher, but beware. I still sense there will be more downside moves that will provide a trading opportunity. At this juncture, I would be looking for sell-offs in the stock market and chaos.
Just like what we saw in 2008 when the stock market and big banks crashed, when a stock market correction comes, there will be aggressive trading opportunities for more active traders.
Stock Markets Down, but Bigger Adjustments Ahead
Have you ever wondered how billionaires continue to get RICHER, while the rest of the world is struggling?
“I study billionaires for a living. To be more specific, I study how these investors generate such huge and consistent profits in the stock markets — year-in and year-out.”
CLICK HERE to get your Free E-Book, “The Little Black Book Of Billionaires Secrets”
The strengthening dollar will make American goods and services more expensive for exports, which will likely result in a squeeze on the profit margins of multinational companies that do much of their business in the eurozone. The dollar would likely test parity with the euro, which in itself is a trading opportunity to play the European companies that benefit from the weak euro.
On the energy front, the basis West Texas Intermediate (WTI) oil declined to the $44.00 level after news of a record surplus in U.S. crude inventories and the fear that there will not be enough storage to hold the oil. Again, we could see oil move towards the $40.00 level. Take a look at strong energy companies that are currently under distress, but may be worth a look longer-term. If you think oil will rally over the next two years, you could look at call options expiring in January 2017 that will give you ample time for oil to rebound.
On the stock market charts, the S&P 500 and DOW remain below their respective 50-day moving averages (MAs). Small-cap stocks continue to attract new buying, as the Russell 2000 is the only major stock market index positive in March and within one percent of its high. With the S&P 500 and DOW down just less than three percent from their highs, I still fully expect a bigger market adjustment.
Aggressive Trading Opportunities for Investors
The current stock market environment is volatile, which means opportunities for aggressive traders.
An example of a recent aggressive stock market trade surfaced after the collapse of Lumber Liquidators Holdings, Inc. (LL), which crashed to below $30.00 from a high of $108.40. The sell-off was driven by concerns regarding the safety of some of its laminate flooring made in China.
Original link:
Profit From The Next Major Stock Market Correction – ETF Daily News
