The market is as market does. With all due apologies to Forrest Gump, I find this statement a great way to explain to you what’s going on right now. In the first couple hours of Monday’s trading, we saw Ross Stores (ROST) and Take Two Interactive (TTWO) lead the way higher.
Not Apple (AAPL), not Microsoft (MSFT), but R-O-S-T. Because nothing says intelligent investor like buying a stock that fell 25% the day before.
Now don’t miss my sarcasm, I don’t think ROST is an intelligent buy. I’m saying the opposite. I’m also saying the downside, however long this temporary bounce lasts, still hasn’t seen its lows.
That’s because the market KEEPS DOING STOOPID THINGS! There are still too many investors blindly buying the dips.
That being said, volume on the QQQ was non-existent and one of the big names didn’t scrap its way into the rally, AMZN. So at least some of those investors are getting scared away by the lack of volume.
I recommend you tune in for the Tuesday morning show.
So that I can tell you about the stocks and option trades most likely to do well in this environment.
Quantitative Specialist, Penny Hawk
May 24 2022