Don’t Fall for the ‘Defensive’ BS. There’s No Defense in a Bear Market

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Don’t Fall for the ‘Defensive’ BS. There’s No Defense in a Bear Market Every trader I know is getting their butts handed to them right now. The Dow is down almost 10% from recent highs and while some investors — not me — are saying we’re not officially in a bear market just yet, the biggest stocks are all down 20% or more… The markets are also trading below their 200-day moving averages. And about 50% of Dow stocks are trading below their 200-day MA. Hell, the Nasdaq 100 (QQQ) is down about 21% from its December peak. There isn’t going to be a happy, clear-cut ending to the tragedy this 2022 stock market is shaping up to be. But everyone wants a tradable bottom. So my advice to them is whatever stock(s) you want to buy today, trade no more than half of your normal position size. You’ll always have another chance to enter the position — and probably at a better price after things head south again. And if you think you can hide in certain names and be defensive, then you’re just flat out doing it wrong. Sure, there are some stocks that work in a bear market, but they are few and far between and even they don’t completely survive the carnage. What you need to do is change your mentality from, “Am I being defensive?” to sticking with being offensive. So either you remain offensive, or you’re better off on the sidelines with cash — and you should have a good chunk of your portfolio in cash at all times. Always have cash just waiting to invest when we reach the true end of this cycle and selling regime. But when you see funds peddling this “defensive” crap, it’s exactly that… crap. Here’s a blunt fact for you… There ain’t no defense in a bear market — and, yes, we’re in a bear market. Everyone and every stock gets hit by the pain train at some point. So don’t play defense. Either play offense and buy at times like I mentioned above, Or sit on the sidelines with cash — dry powder — ready to invest when you feel like you’ve found a tradable bottom or deep discounts on great companies you want to buy and hold. But more than anything, buy the pukes and sell the rips. By this, I mean traders should buy when the market dumps and sell when it rips higher — that’s how you swing trade. Don't Fall for THIS Either Jeff Z Jeff Zananiri spent over two decades on Wall Street learning how the best made consistent money in the market.  Governing Bodies Send Major Shockwaves Through Markets Many traders have no clue… but this has set off a domino effect… And according to Chuck Hughes’ research… a handful of stocks are set to take off as a direct result! But it’s probably not the stocks you’re thinking of right now… We’re talking about a whole NEW market cycle… new stocks… new trends.   Click Here to See the Most Convincing Market Signal of Chuck's Lifetime The Most Important Metric for Traders to Watch Right Now April 23, 2022 Lately, I’ve been talking about how much of a chop shop this market is — flip-flopping between being up and down… back up and down again…   Continue Reading Why Traders Are Waking Up at 2 AM to Watch This Chart April 22, 2022 Guys, I really want to talk about the macro and big-picture view I have for the markets right now.   Continue Reading Joy of the Trade A WealthPress Publication   ABOUT US:  We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. WealthPress provides an array of educational services and products that will help you navigate the markets and become a better investor. 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