Volume is low as we head into the Christmas holiday.
It makes sense – the market is slow-moving like this every year around this time. The Santa Claus rally has ended, and everyone’s getting ready to spent the next week with their family, not in the market.
When trading volume is low, so is volatility. And low volatility has the potential to hurt traders – remember my trading commandment, volatility is a trader’s best friend?
That’s why you’re better off staying out of the market during these low-volume holidays.
So today, instead of tossing you a new trade recommendation, I’m going to take some time to explain another one of my important trading commandments.
This one has everything to do with volume – and once it picks up again after the holidays,
these are five words you won’t want to forget…
My ninth Commandment of Trading states: Stocks are driven higher by speculation, not fundamentals.
This is the commandment I receive the most backlash on. But it’s also the one that I will argue with anybody and everybody over. I know exactly what drives markets higher and lower, period.
When the market is climbing higher, this is one of the simplest ways to gauge whether it’s in a true rally or just a temporary bounce. By following this commandment, you’ll never miss out on the real action.
As a matter of fact, it’s the rule that has kept me bullish through much of 2020 after that deep dip in the spring. And it has made me even more bullish on smaller, more speculative stocks as we head into the end of the year.
Today, I’m going to tell you about the sector I’m the most bullish on for 2021: alternative energy.
This group of stocks is already skyrocketing – just today, this group of readers had the chance to make 116.88% on one solar energy company.
There are three stocks ready to lead this sector even higher, and you’ll want to reserve a spot in your portfolio for them today…