I’m in the hot seat! And I’m not the only one. Luke is, too. It’s all in fun with some deep analysis thrown in as we shake things up with today’s Power Trends+ and go head-to-head with our quantitative stock-picking system.
I like to know the “why,” but all I need to know is the “what.” My Quantum Edge system tracks Big Money flows in individual stocks and the market as a whole. That’s the “what.” I can see where the money is flowing. As to the why? Sometimes that comes later. That’s where I am right now with the sector seeing a stunning surge in buying – a surprise sector at that.
As a Power Trends reader, you already know that my goal is to take emotions out of investing. The more emotional we get, the more mistakes we make. Well, if there is one thing in investing that sparks emotions, it’s options. People are fascinated, intrigued, scared, confused… and who knows what else. I get it. I spent seven years as Head of North American Equity Derivatives… a fancy title for running an options trading desk. I’ve seen the good, the bad, and the ugly. Options can be terrific investments that allow you to do just about everything. I mean, you can make money on stocks that go down. How cool is that?
Companies big and small are racing to develop the first viable flying car, or eVTOL (electric vertical take-off and landing aircrafts) as they are now called. One of the companies in the race is named Jetson. I love it. eVTOLs take off and land by going straight up and down, and they can hover – like helicopters and drones. They run on batteries and are so-far designed to carry two to six passengers, including a pilot.
Watch Now… Every time you buy a stock, you’re also rejecting thousands of other stocks. It’s important to analyze both winners and losers to better understand how to find the good and avoid the bad. You continue to help us with that by submitting some interesting companies to analyze. Honestly,
If you invest in the highest quality stocks to begin with – those with the best fundamentals, strong technicals, and Big Money flowing in – you’re likely to do yourself more harm than good by selling and hiding for six months. I dug into FactSet data and compiled the average returns by month for the Dow, S&P 500, Nasdaq Composite, and Russell 2000 small-cap index (RUT). And yes, there’s some seasonal weakness in there, but the most volatile month is clearly September.
