Trade What You See Not What You Think
I can't remember a time where I've had to work this hard to detach my feelings and thoughts about the economy when focusing on my next trade or investment.
With millions of jobs being lost and entire economies in "shut-down", the stock market is not reflecting most people's thoughts and feelings on how stocks "should" be acting.
With the NASDAQ flat year-to-date and the S&P 500 down less than 10%, it's causing a lot of head scratching among investors and traders that feel stocks should be trading much lower. However, that's not what's happening. At least not yet.
There have been good trading opportunities in popular names like AMZN, SHOP and NFLX as they continue to trade independent of the market and have recently made new all-time highs.
The price trends in these and other technology names have been intact for months. Those that could detach themselves from what is happening around them and focus on price have been rewarded.
There are a couple sectors that could be starting trends of their own. Precious metals and Biotech.
Despite what your opinion might be with regards to these sectors, I know from experience that a break out from a long standing base can be a powerful catalyst for a potential move higher.
I'll be watching closely to see if these two break outs can follow through to the upside, despite how I feel about the economy and what most people think stocks "should" be doing.
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