It is possible that the prior winners have gone to extremes and that other stocks are having their day before the entire market drops? Best for me to own little, have close stops and wait for Mr. Market to reveal his intentions. The gold and silver and mineral stocks are bouncing from oversold. Will they retake their ATHs? Note the Blue Dot of Happiness, oversold bounce, on Friday on QQQ. Resistance is at the 2.15 upper Bollinger Band.
Hi, Dr Wish, I’ve been meaning to contact you for several years. I started in the market in the late 60’s. I walked in Merrill Lynch with my wife and $500.00 dollars to invest. The brokers fought over us, none of them wanted us. The one that took us selected three stocks so we would be diversified. After we left the office, I realized we lost a chunk of money on the commissions. All of them dropped like a bricks. So, I went to a bookstore in Oakland, CA and bought 10 books on the stock market and left for Vietnam on an aircraft carrier. One of the books was, How I Made $1,000,000 in the Stock Market by Nicolas Darvas. (His first book). Well, after reading his book I subscribed to Barrons. Being off the coast of Vietnam, I was getting them two to three weeks after they were published. I tore the paper in half, saving the market tables and stock prices. I bought graph paper and starting making weekly graphs.
I discovered a company called Aqua Chem and sent a check off to Merrill Lynch to buy some. It took two weeks for mail to go each way. So, a month later I got my check back and a note that Aqua Chem had been taken over. It doubled! I then discovered a phrase I still use today. Lost opportunity!
When I got out of the Navy, 1971, I started teaching at Melrose High School. Physics, Pre-Calculus, and Aviation Science. In February 1971 I spotted a company, Charter Oil Co, in February. Their stock and warrants were on the Barron’s most active list week after week. So in May I started to buy the warrants at 3/8. I was averaging up I bought some more in July @ 17 and august @ 23.
One afternoon, I walked into the high school office to check my mail and the office secretary mentioned that my Merrill Lynch broker had been trying to reach me. I called immediately and found out the good news was out. The high for the day was $45 and it was currently at $42, I sold half at the market and put a stop on the other half @$40.
So I took the money and ran. That is, moved to Maine and became a stockbroker.
I could write a book about being a stockbroker.
Anyway, I liked your idea about the QQQ and started looking at other ETFs. My experience over the years was that tech led the market up and tech led the market down. So last spring I was watching the SOXX index and the SOXL. In April the news media was lit up that Trump and Musk were going to destroy business and the stock market.
I immediately checked T2108 and saw that it went below 10%. So I bought SOXL at $8.30. That’s all I’ve traded this year. I wondered if it would make it up to 74 and we’re close to it now.
Every day I check the thirty stocks in the index. I key in SOXX the check each stock on TC2000.
I feel this is a clearer picture of tech stocks than QQQ.
As I look at the market today I see DJIA down COMPQX down SPX up slightly and SOXL up $4.00 about 6-7%.
Oh, by the way, I entered the option trading contest in 1992 that was sponsored by USA Today and FNN.
We were given $500.000 over a three month period to invest. But we were limited to 100 trades.
Coming into the final week I was up a little over $4,000,000. but I was out of trades. So, I ended up $3,800,000. That was highest in the State of Maine and seventh in the country.
Would love to hear from you, I’m retired in FL winters and Maine summers