3 Red Flags to Look Out for In the Stock Market

Posted On January 14, 2020 2:43 pm
By: Steve Smith

The stock market has been incredibly resilient, shrugging off both slowing economic data and potentially explosive geopolitical events.

The market is already up some 2.5% in just the first two weeks of the year. I’ve already seen two market prognosticators pull their sale of their 2020 Outlook because half of the names on their buy list have already hit the annual price targets. Granted, they did go with momo names like “Tesla (TSLA)” and “Beyond Meat (BYND)” which are up 30% and 50% respectively since the beginning of the year.

And while there is a sense of growing euphoria, or at least that this bull can do no wrong, the rise has been relatively orderly.

Indeed, since a breakout in mid-October in which “SPDR S&P 500 (SPY)” has gained some 10%, 87% of the days have been positive. Only two days have posted moves in excess of 1% and they were both down days.

It’s simply an… Continue reading at StockNews.com

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.