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Zach Scheidt

Helping families build wealth so they can focus on what really matters

Don’t Try to Pick the Market Bottom

October 13, 2021 at 5:06 pm by Zach Scheidt

Don't pick the market bottom

“Are we close to a market bottom?“

That’s one of the questions I’m hearing these days after the market’s six-week selloff.

Here’s my response…

“You know what you get when you pick bottoms?? Smelly fingers!!“

Ok ok… Sorry about that. I learned it from Bill, my old boss and mentor at the hedge fund.

But frankly, it’s very difficult to pick a market bottom. And besides, “the market” isn’t really a great measure for your investments anyway! Remember, there are so many areas of opportunity that don’t really show up when you look at a chart of the S&P 500.

Even so, the recent weakness for stocks has a lot of investors on edge. Some are this close to throwing in the towel and giving up. While others are ready to pour more money in (hoping that this is the point where the market will turn around).

I’ve got a better idea. And today, I’ll show you a project I’ve been working on to give me (and you) a better shot at profiting from this market pullback.

Don’t Pick the Market Bottom — Pick the Best Stocks!

There is always a bull market somewhere. (Jim Cramer doesn’t have a copyright to that statement – and it’s been around long before either of us started trading).

Just take a look at the difference between these two stocks!

Here’s the S&P 500 — what most traders consider to be “the market.”

The market pullback is relatively tame

Yep, the market has traded lower for a few weeks. But it’s still hard to see anything but a “bull trend” when looking at this long-term perspective.

Now, take a look at the S&P Financial SPDR (XLF) — a fund that tracks the financial sector.

Financial stocks don't need to "bottom"

This “market” hit a new all-time high this week (before the JPM earnings report caused a few financial stocks to pull back).

A lot of traders think the financial sector is “boring.” But there’s nothing boring about a market of stocks that’s hitting all time highs. This group of stocks is also investors plenty of income as well!

If you’re looking for other areas of strength…

  • Energy stocks are surging thanks to higher oil prices.
  • Solar stocks are on the move as well.
  • Auto stocks (legacy names and also TSLA) have big recent gains.
  • Hotel stocks are on fire with some at all-time highs.

I could go on, but you get the point. There are plenty of great opportunities that you can jump in to right now. And none of them require you to successfully pick the market bottom.

Keeping Track — and a Special Gift

If you’re like many traders, it can be tough to know where to find your next big trade idea.

I used to find myself falling back on the same handful of familiar stocks. And my profits often rose or fell based only on how well these particular stocks were doing.

Over the years I’ve become more organized and I keep lists of stocks set up in my trading platform.

LOTS of lists!

Since investing is my full time job, I don’t mind going through these lists on a weekly basis.

Recently, I decided to distill all of those lists into one actionable collection of key stocks. I think of this like my “all-star” roster of stocks setting up for a big move.

And since we’ve got a dynamic market with plenty of stocks rising — and plenty of stocks falling — I included stocks that are great BUY candidates, and also great SELL (or short) candidates.

After all, versatile traders can make money both from stocks that are rising, and stocks that are trading lower.

Today, I’m offering you my “20/20 Watch List” so you can see which stocks are at the top of my trading list. Hopefully, these these tickers will help you lock in profits from great setups that are in play right now.

>>Get your free copy of my “20/20 Watch List here<<

This way, you don’t have to try to time the market bottom. Instead, you can keep a close eye on the trends that are emerging right now.

I’d love to know what you think about this list. Do you have questions or concerns about the specific names? Do you have a favorite stock you think should be included?

Leave a comment below and let me know!

Here’s to growing your wealth in ALL market environments. (And to not picking bottoms… ewww!)

(Trade procedure: 5 minutes after this notification posts, I will enter the trade on my brokerage platform. Once filled I will edit this post to include execution prices.)

Please note: I am placing these trades in my own account. And while I notify the group of all trades 5 minutes before I place my own personal trades, this creates a conflict of interest. Please review all disclosures and agreements included with your subscription packet.

Filed Under: Markets, Public, Trade Ideas Tagged With: investing, market bottom, stock market, watch list

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DISCLAIMER: Stocks and options trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the stocks and options markets. Don't trade with money you can't afford to lose.

This is neither a solicitation nor an offer to Buy/Sell stocks or options. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this page. The past performance of any trading system or methodology is not necessarily indicative of future results.

All trades, patterns, charts, systems, etc., discussed on this page are for illustrative purposes only and not to be construed as specific advisory recommendations. Information contained on this site or in any correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.

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