The Nasdaq 100, which contains many of the biggest names in technology, is currently in the fix area. The index is 14% off the 52-week high.
Financial news outlets love accurate definitions. A “Fix” Is down at least 10% from recent highs, while the “bear market” is down at least 20%.
Well, I’m not a jargon tycoon. Whether this is an “official” fix is not important to my analysis.
The big point for me here is The market is losing momentum.. We no longer have that rising tide to lift every boat. So you need to be careful.
But even small setbacks like these give us an opportunity. Once the dust has settled down, it’s time to put together a list of stocks to buy. Of course, there is also a system for that.
Why Nasdaq has been fixed
Before explaining what to do next, I would like to briefly analyze what is happening.
Market modifications were particularly tough for tech stocks, but they weren’t friendly to any market sector.
There is a reason for that.
It’s a mistake to read too much about why stocks have fallen, but you don’t need a “reason” to move stocks, but today’s concerns focus on the planned tightening of the Federal Reserve.
As the Fed curtails bond purchases, it eliminates the main source of buying pressure and explains why bond prices are declining. And lower bond prices mean higher bond yields.
All of these have a significant impact on technical evaluation.
You don’t buy tech stocks for today’s profits. You buy them for the expected profits in the future, or for decades. The higher the market interest rate, the lower the value of future returns when discounted to today’s price.
Put these 100 Nasdaq shares on the radar
My unique Green Zone rating system is a way to objectively rank stocks by six factors that have proven to perform better over time: momentum, growth, value, quality, volatility, and size. Provide.
I ran the Nasdaq 100 screen to see what was ranked as “bullish” in the Green Zone rating after recent volatility.
The list is pretty short!
However, there are some points.
The list is heavy with the tech name of Megacap, which generates a lot of cash flow today.. That makes sense given the rising bond yields.
Ideally, you need a stock that is generating a lot of cash today but also The pipeline has major growth projects that the market is currently ignoring.And that’s the subject of my January issue Green Zone Fortune, by the way!
I am a trader, not a predictor. We will not talk about when the market will bottom out or the exact price. It’s a fool’s errand.
But I’ve done this for long enough and I know that changes can happen in a blink of an eye. What is needed is an unruly comment by Fed officials, leading to a short cover onslaught, which will be a snowball-tradeable rally.
I don’t know when that day will come, but I would like to prepare for it.
And one of the best ways to prepare is to join my premium stock research service. Green Zone Fortune today.
You may be wary of buying stocks now. understood.
But we are still Green Zone Fortune Model portfolio. And according to my research, I believe the brightest days of these strains are still years away.
To find out why I am so confident in megatrends like the Genomics Revolution click here Watch my “Imperium” presentation now.
For good profit
Chief Investment Strategist
A Nasdaq Post-Correction Stock Watchlist Source link A Nasdaq Post-Correction Stock Watchlist
The post A Nasdaq Post-Correction Stock Watchlist appeared first on California News Times.