If you’re new to trading, you’re used to those growth stocks just crushing it…
Names like Skillz Inc. (NYSE: SKLZ) were up over 200% just a couple of months ago, and now it seems like they can’t catch a bid no matter what the stock market does.
Monday was not a good day for the Nasdaq…
The tech-heavy index dropped just over 2% while the Dow dipped, but still outperformed the other major indexes.
Now we’re seeing some rotation into the “boring” Dow and commodity stocks.
With inflation fears rising, oil names like Exxon Mobil Corp. (NYSE: XOM) and copper names like Freeport-McMoRan Inc. (NYSE: FCX) are looking strong.
U.S. Steel Corp. (NYSE: X) is trending up, and Cleveland-Cliffs Inc. (NYSE: CLF) even had a nice insider signal buy not too long ago.
And if you look at the growth stocks that outperformed in 2020 — the Cathie Wood stocks — they’re getting crushed…
So if you didn’t hedge your risk exposure, you get crushed with them.
We saw a lot of put buying from big fish in names like Palantir Technologies Inc. (NYSE: PLTR) in the last few days. Yes, the stock saw a 9% earnings pop Tuesday…
But that’s not surprising when you know the stock was down about 60% from its $45 high in January.
If you look at the numbers, it’s easy to see why the shares saw such a deep haircut. PLTR beat first-quarter estimates, but revenue and earnings-per-share growth is slowing.
And that isn’t going to improve when you consider that the company’s staff of hundreds of sales people only bagged 11 new customers for Q1.
I know there are a lot of traders out there who bought the stock just because Wood did.
But shadowing traders blindly is a great way to blow up your account without even realizing it.
Check out the video below and let’s talk about what’s going on in the stock market right now, and some different things we can use to hedge risk exposure in our portfolios. It’s a great time to be a trader, get on top of the markets — and to broaden out your names and sectors.
More importantly, always hedge risk exposure. It’s something I talk about a lot and follow through with in all my trading strategies.
I actually bought some puts on a few weak names with bad charts. One of those stocks — American Well Corp. (NYSE: AMWL) — was down over 7% on Monday. My Weekly Blitz Alerts service booked a solid 36% profit on the first leg of the trade, with more to go!
So if you’d like more detailed management with text and email alerts telling you exactly what and when to buy and sell, you can learn all about it, right here.
P.S. I just caught wind of Chuck Hughes announcing the biggest project of his entire career: the Triple Threat challenge…
A chance for everyday traders to completely transform their lives over this summer…
He’s starting traders off with a special $50,000 challenge account… and equipping them with the tools necessary to bag the returns of a lifetime…
… to become a championship level trader on their own!