The market has been tough to trade – in fact it’s one of the toughest markets in recent memory. The question is: why? Several indexes are near their highs while a few others are simply in the middle of their ranges. So why is trading so hard?
In my opinion, it’s because of the steadiness of the selling pressure. Stocks aren’t alternating between dropping and popping and posting losses over time. They aren’t dropping 3-4 days and then rallying 2-3 days and posting losses overall. Instead they are just relentlessly selling off.
This means if you want to exit a position and are waiting for a bounce, you end up taking a big loss because there haven’t been any bounces. Or if you’re waiting for a bounce to go short, you never got an entry because there have been almost no back-to-back up days. Many stocks have literally dropped 10 of 12 days and haven’t posted consecutive up days in several weeks. Below is a list of stocks that have given traders no second chances.
I talk about recognizing the market’s personality and making adjustments in my masterclass. Check it out. It could be a game changer for you.
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Jason Leavitt
9 thoughts on “No Second Chances – This is Why the Market has been so Hard”
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Great info you provided above.
I have gone from losing #3-$5K (PLUG one of them) on some of the stocks in my portfolio to the biggest loser today was VIR ($214.40) at the time I’m writing. Most of my portfolio is in BioTechs and Alt energy & EVs. So, is the blood letting in these sub-sectors over? Would they still go down 10% or more? What ppl smarter than me are thinking?
All a matter of perspective. I have had the best 6 weeks in years. This market is golden.
PS I only trade leveraged index ETF’s. Buy at the bottom and sell at a profit.
I’m doing something similar. Looking for the strongest 2x and 3x ETFs
BRZU is one good example. It made a bottom early March. And now it’s made two higher lows and broke above resistance a few days ago.
I have no idea if the chart will post.
https://stockcharts.com/h-sc/ui?s=BRZU&p=D&yr=0&mn=10&dy=17&id=p61812314804&listNum=2&a=870675176
MEXX is another nice example.
https://stockcharts.com/h-sc/ui?s=MEXX&p=D&yr=0&mn=10&dy=17&id=p37439924471&a=870678316&listNum=2
Pete nice charts.
Nice work daddypaul. What have you traded?
Traded mostly TQQQ and Some SOXL.