If you missed us this morning… following a holiday season hiatus, Crush the Open is BACK!
We have a lot of changes in store for 2023, but the main goal — aside from having some fun, of course — is to talk trading, trading, trading, so let’s get to it!
Volume has finally returned to the market, and the trading has been super hot, especially since New Year’s Eve.
Crush the Open
People ask me all the time what my favorite stock is for (insert time frame)…
To me, this is the most boring question in the world. There’s no nuance to it, and it’s just not how I look at trading.
In this sort of market, I’m looking for stocks to make money on over the next 24 hours to a few weeks… to hell with the rest of the year.
This is also a great teachable moment for everyone reading at home.
I’m not a trading evangelist… I want my trades to work right away, and I don’t care what sector the stock comes from. I don’t want to sit around in everyone’s favorite stock of yesteryear or the latest hot fad company, just waiting for things to get better.
Because if that’s all you’re here for, you’ll miss out on the big movers that are moving right now.
Let’s take Microsoft Corp. (Nasdaq: MSFT) for example. It’s a big-name, blue-chip tech stock that everyone knows. It’s been getting crushed of late, down about 7% the past week, so I’m sure a lot of people are wondering if this is a good dip buy…
In a word… no.
I’d love to see a big rally in Microsoft because to me, that would be a good time to lay down some puts and go short because I don’t think the downswing in Mr. Softie is done. Just check out this chart…
Does that look like a stock I’d want to buy and hold long term? Heck no!
Here’s the thing… Most everyone expects Microsoft to rebound but we’re looking at a downside move from $265 to $225 (before Monday’s bounce), and I don’t think that’s the end of its dip. This was a $100 stock pre-COVID-19, and most of its growth since was based on the cloud, which is an old story now. The growth just isn’t there anymore…
Ultimately, at this point, this is an old, slow-growth company trading at a 24-plus P/E ratio. So for me, if I’m looking for a short-side hedge against my longs, I like MSFT there because the puts are still “cheap.”
And if it runs up before its Jan. 24 earnings date, all the better.
This just goes to show that we need to be fluid in our trading. We can’t look at the market in terms of “XYZ is going to be my favorite stock for the next X number of days or months.”
Check out Crush the Open up top and let’s discuss some other stocks that look much more favorable for a near-term bounce. And join us at 9 a.m. ET every Monday to start your week with some actionable trading ideas — and some fun! Join our Telegram channel here.
Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at email@example.com with your trading questions and I may cover them in a future video. You can also join my free Telegram channel, where I share market insights real time throughout the week, articles, videos and more!
*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk.
P.S. Watch This as Soon as Possible
Did you miss the live broadcast of my “The Biggest Trade of the Year” event?
Click here and catch the replay.
The good news is the markets are finally open for a new trading regime in 2023… and there’s still time to get in on what could prove to be the biggest trade of the year…
Here’s what to do now:
Watch the ‘The Biggest Trade of the Year’ LIVE Event