One Stock Might Hold The Key To The Broad Market

(after all, it’s been propping up this whole bull run)
 
   
     
   
 
APRIL 19, 2024
   
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There are times when investors are so scared, their faith in the markets so shaken, that companies across the board will post record earnings, and yet the stock goes down.

When I see times like that, I know there’s a lot of fear in the markets. How can something that’s doing so well go down?

And the answer is, it shouldn’t… It’s an irrationality in the markets, an inherent fear that is gripping investors and making them run for the storm shelter even when there’s nothing but clear blue skies in a particular stock’s fundamentals.

We saw this last week with many banks. Then with Netflix yesterday as the streaming giant opened about 8% lower.

When will the selloff end?

 
 
A Gold Rush… Every Weekend?

Jeffry Turnmire has been studying stock ticker GLD… and he’s discovered an amazing weekly pattern!

The entire strategy can be summed up in a single sentence… And the trade only lasts 3 days (at most)…

But the results? You’ve got to see them to believe them.


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SCOTT WELSH’S ANATOMY OF A GREAT TRADE
Anatomy of a Great Trade: HSY
 

When we think of big moves, we don’t usually think of boring consumer staples companies.

Tech is where the growth is.

It’s not in chocolate.

Or so it would seem.

But that’s not always the case.

Sometimes boring companies we see every day at the grocery can move quite a bit.

Take Hershey (HSY) for example. 

Back in January 2021, HSY closed above the 12-month simple moving average two months in a row. 

That could’ve been our entry. 

What happened next?

 
 

It went from our entry at $153 all the way to our exit (when price closed below the 12-month simple moving average) at $232.

And keep in mind, we would’ve been paid a dividend all along the way. 

Life is like a box of chocolates. 

And sometimes, big moves are like that, too.

Happy trading,

Scott
   
 

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