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The S&P 500 is stuck. Money is rotating inside equities but not flowing in.
Bonds are selling off. Nobody wants to commit.
This is not the time to chase high-flyers.
I'm looking at one number before I buy anything right now: beta.
Beta tells you how much a stock moves compared to the broad market. A beta of 1.0 means the stock moves roughly in line with the S&P 500.
A beta of 2.0 means twice the volatility.
When the market swings 1% up or down, a beta-2 stock swings 2%. That's great in a trending market.
In a choppy, directionless mess? It's a recipe for whipsaw losses.
P.S. Want to see how I identify tomorrow's levels tonight? Join me for my next Dark Wires webinar and watch the entire process from start to finish.
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