Hey traders,
I know the markets have been giving us all a bit of a headache lately, and if you’ve been watching the news, it seems like it’s nothing but doom and gloom.
But let me tell you something — I’ve been around long enough to know that every cloud has a silver lining. So, let’s talk about the opportunities hidden in this market chaos.
The Current Market Scene
All three major indexes are down from their highs. The S&P 500 (SPY) is down about 7%, the Dow (DIA) is down about 6% and the Nasdaq, which had been leading the charge for much of the year is down 13% from its highs.
The jobs report came out, and it wasn’t pretty. Fewer jobs added, unemployment ticking up — it’s no wonder folks are jittery. But here’s the thing: markets are always going to have ups and downs. The trick is to spot the opportunities that others might miss.
Finding Opportunities in the Chaos
First off, don’t lose sight of the power of dividend stocks.
I’ve talked to you a lot about that over the past week or so. If you missed that, check out this video.
When the market’s down, dividend stocks often become more attractive because they offer a steady income stream.
Think about those companies that have been paying dividends for decades — they’re like the sturdy oak trees in a storm. They might sway, but they rarely break.
And what about those tech stocks that have been taking a beating? Sure, they’ve had a rough patch, but that’s precisely when you need to start paying attention.
Some of these companies are innovating like crazy and have the potential for strong rebounds once the dust settles.
But don’t mistake what I’m saying: We don’t pick bottoms around here. Because as far as I’m concerned, that’s just a guessing game.
We look for confirmed trends and trade them till they end.
So what’s trending right now?
Here’s a handful of stocks for you to go look at:
- GDDY
- MSI
- CL
- VTR
- IRT
- WELL
- LTH
- PPC
I’m not telling you to trade these. Just look at them. Watch what happens.
Maybe do this exercise with them, which you can do completely free without risking any real cash.
Get comfortable with the idea of trading trending stocks.
Practice some of the things I’ve shown you here.
And when I say practice, I mean it. Paper trade these strategies with these stocks I listed above till you get the hang of it.
Because every market has trending stocks.
I mean, think about it. This past Friday and Monday left most traders dizzy and feeling nauseous with how fast things dropped.
But even with that, the stocks above barely felt it. Some were even going up on Monday while everything else was down.
Learn to spot those trends, practice trading them. Because once you do, you get a sense of control that some traders never feel.
UPDATE: A few days after I wrote this article, I wrote this follow up article where I analyzed the charts of each of these stocks so you know what I’m looking for in a strongly trending stock.
Trade well,
Jack Carter
