| April 11, 2014 | | | | | |
 | | | | The Great Growth Stock Rout of 2014 | | | - Stocks swoon
- The death of an uptrend
- Plus: In search of new catalyst trades
|
| | | Greg Guenthner coming to you from Baltimore, MD...
 | | Greg Guenthner | Stocks are plummeting and investors are running scared.
But if you adjust your trading strategies, you'll not only survive-- you'll also have plenty of chances to profit.
Enough with the pep talk. Let's take a closer looks at yesterday's stock market disaster...
I would crank out a list of all the stocks that completely fell apart Thursday. But I don't have the space or the patience. Just know that any stock that was roaring higher in January is getting smashed into the pavement this week.
And it doesn't stop there...
I told you Monday we were probably in the beginning stages of a significant market pullback. Now, the midterm election year spring swoon is getting upgraded from a tropical depression to a category five growth stock massacre.
Investors kicked the NASDAQ in the teeth yesterday, dropping the tech-heavy index more than 3%. The damage spread throughout the market, of course. Only 16% of all the stocks trading on major US exchanges ended the day in the green.
More importantly, the NASDAQ and Biotech uptrends are dead on arrival...
From here, you know the drill. Analysts will scramble to defend their favorite stocks. The crash-callers will jump on TV and being spouting off how the market will soon go to zero. The circus has begun.
Here's another B.S. argument you're going to hear over the next few days: The market is just "rebalancing", they'll say. The corrections we're seeing in the big growth stocks, high-flying momentum names and biotechs won't do as much damage to other areas of the market.
I'm just not buying it. Of course, we're already seeing the selling spread. While the growth stock rout has captured to the attention of many active traders, a lot of folks who don't check the financial pages are just now hearing about some of the market weakness we've been talking about for weeks.
That's right-- most investors haven't quite noticed something is wrong with the market just yet. Unless you've been actively investing or trading in social media or biotech, your portfolio probably isn't looking half bad. I can almost guarantee that your great-uncle Carl hasn't sniffed out this growth stock rout. Don't worry. He'll call you early next week to ask what's up with Facebook stock...
Right now, it's important to keep a level head. We've already talked about lightening your exposure to stocks and taking smaller position sizes. Today, you should add one more strategy to your trading arsenal: sell the rips. The buy-the-dips market is finished... for now. | | | | | | | | | Secrets of an Ex-IRS Hit Man Revealed [time sensitive]
An insider has blown the whistle on a little-known tax document… a document so special… that IRS agents themselves use it to hide their own money. Your accountant probably doesn't even know it exists. But now… after years as an IRS hit man… one insider has switched sides… And is showing hardworking taxpayers exactly how to get their hands on it. Click here to read his shocking story… and discover the amazing document that could save you $20,000 or more, year after year. | | | | | | | |  | | | | Rude Numbers | Targets, Predictions and Wild Guesses
| | | | 20% | of the NASDAQ Composite is made up of companies that went public after 2000. | | 170 million | users have been added to pic-sharing app Instagram, since Facebook bought the company two years ago. | | 2% | losses have been seen in the IPO-tracking Renaissance IPO ETF for 2014, after the index had been up 8% on the year as recently as one month ago. | | 129 | points dropped off the NASDAQ yesterday. The 3% drop was the biggest of the year... so far. | | $1,321 | is where you'll find gold futures this morning. The yellow metal continues to inch higher as the market struggles to keep it together... | | | | | | | | Rude Trends | When to Buy... When to Sell
| | | "Our No.1 rule for a catalyst trade is to find a situation where there is substantial upside, but limited downside. It is important to find a spark that could make money, but it is also just as important to keep your eye on the risk involved with the downside."
That bit of insight is from my new colleague Rick Pearson. Rick is hot on the trail of new catalyst trades (yes, even in this market). In fact, he just revealed a stock that appears to be a great bet stacked in his favor. "There is tremendous potential for upside," he says, "but a very solid floor of value beneath the current price."
On Thursday, April 17, you can be among the first people Rick will clue in to each of the "Newton Profit Triggers"... and how you can play them for threefold gains in just 24 hours.
To get the full scoop on how you can trade like Rick, all you have to do is sign up in advance. It only takes a second-- and it's absolutely FREE (no credit card required). Click here to get started.
[Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner] | | | | | | | Ignore At Your Own Peril | Today's Must Read Links
| | | | | | | | | BE SURE TO ADD dr@dailyreckoning.com to your address book.
| | | | | | | Additional Articles & Commentary:
Join the conversation! Follow us on social media:
| | | | | | | | | |
© 2014 Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. 
No comments:
Post a Comment
Keep a civil tongue.