It makes sense for there to be a ton of market volatility thanks to things like Meta’s (Facebook) disappointing quarterly report, and the fact that we recently had one of the worst market shakeouts since the COVID-19 crash in March of 2020.
I tend to talk about pullbacks in a lot of my videos… However, if you’re wondering exactly what they are, they’re a pause or moderate drop in the price of a stock or stock market. And they’re relatively short in terms of duration.
But the real question you should be asking is how we can gauge those pullbacks in price…
It’s been a gut-wrenching few days for the recently rebranded parent company of Facebook after a disastrous Feb. 3 earnings report. Revenue came in under analyst expectations and shareholders abandoned ship, sinking the once-revered growth stock by 26%. All told, the $119 billion loss is the largest single-day drop in stock market history.
Adding insult to injury, shares continued to sell off across the next three sessions… But thankfully, the slide came to an end Wednesday. Shares of the beleaguered tech firm bounced more than 5% as traders looked to get their piece of one of the biggest dips of all-time!
But if you’re not ready to call the bottom for Meta, don’t worry. I have two more massive options trades hitting the tape…
“Hello Roger! Thanks for everything. Made $10k on my $50k account w my first 2 week cluster.”
Randle B.
Correlation is a statistical concept that in simple terms describes the relationship between two or more variables. The relationship is positive when the two variables move in the same direction (both up or both down), and is negative when they move in opposite directions (one up, other down). An example of “perfect positive” correlation would be: Stock A moves up by 7%, Stock B also moves up by 7% (direction and magnitude same). An example of “positive” correlation would be: Stock A moves up by 7%, Stock B moves up by 5.5% (direction same, magnitude varies).
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