Market Caught in a Rundown!
Updated: Jan 28
Coach's Strategy: Whooooooooa! What just happened to the Stock Market?! Well, if you really want to cut through the 'noise' (news media) click here for our previous analysis of what we expected. This is now seemingly coming to fruition with an increase in volatility and a strong move lower. What's an investor (Ballplayer) to do? We got this. Your coach (me, Steve Econ) and his crew Brian (Third Base Coach), Jake (GAME Tracker), Tony (The Closer) and have worked off of the game plan from this Shot Clock Market Minute Video to attempt to protect portfolios. We believe this move may just be starting so hold on and stick with your plan. Here's Tony (The Closer) to give you a bit more details of what may be the source of this market madness... -Coach (Steve)
7th Inning Stretch: For some time now, we've been saying that the market has been overstretched, and as of last week we implemented new portfolios that aim to protect during these times. From our Coach's Strategy, it became understood that we did not want to invest in certain traditional holdings so we supplemented defensive individual stocks (AT&T, PP&L), sector specific ETFs (Industrials, Energy, and Commodities), market inverse positions, and high exposure to short/intermediate term bond holdings that often offer support in a down market like we experienced today. Wide margins have become the center of attention as we observe stocks like GameStop and AMC Theatres soar, while the major market indices drop heavily, which could be suggesting further downside. Just like baseball games need the 7th Inning Stretch for a breather, the market does too... And this may be the beginning. Let's get some signs from our Third Base Coach, Brian. -The Closer (Tony)
Watch Your Signs!: One of the most interesting parts of baseball is the communication between coach and player, using a series of hand signals and touches that tell the players what to do based on what the coach is thinking. Our plan is always to communicate to you what we are thinking and we have been busy doing that. Through emails, our new text service, personal phone calls, and now our new blog series, we are able to let you know how activity in the market affects our trading activity and how that all affects your personal plan. Don't look away from your coach and always WATCH YOUR SIGNS! -Third Base Coach (Brian)