Three Stocks that Could Bounce (DIS, SSO, IBB)
China is killing U.S. equities. The S&P500 is down more than 10% since last week. Taking it down with it are three of our favorite stock picks for 2015. They too have been knocked down at least 10% or more. We recommend taking a look at Walt Disney (DIS), iShares NASDAQ Biotechnology Index (ETF) (IBB) and the ProShares Ultra S&P500 (ETF) (SSO).
The correction appeared to be ending today until stocks reversed their course and turned lower. Mastery likes the IBB, SSO and DIS on any chance of a relief rally which we believe is coming. Once stocks do start to comeback you can play 2x the gains in the S&P 500 by using the ProShares Ultra S&P500 (ETF) (SSO).
We have said time and time again that BioTech is the future and the space to be in for 2015. You can accomplish this by investing in the iShares NASDAQ Biotechnology Index (ETF) (IBB)
Finally the Star Wars universe is going to cash in huge for Walt Disney Company (DIS) and we like the opportunity to buy this one on the pullback.
The question is when to take the risk and catch the bounce no these three equitiy plays?
Despite the doom and gloom we point out the following that the worst may soon be over:
"Key indicators reach required levels to go 'all in,'" Canaccord Genuity's chief U.S. strategist, Tony Dwyer, wrote in a Monday morning note. "With such pronounced weakness underneath the widely followed indices, we believe much of the global economic and Fed-related uncertainty is largely priced into the average stock, and now even the closely watched indices."
Dwyer had been waiting for four indicators to signal that it was time to take an aggressively bullish position on stocks: A jump in the CBOE Volatility Index to 20 or higher; a falling percentage of S&P 500 stocks above their short-term moving averages; weakening market momentum according to a separate technical indicator; and a declining number of bulls according to the Investor Intelligence newsletter writer survey.
"All four of our intermediate-term buy signals have hit required levels that surround a significant and sustainable low," Dwyer wrote.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- Hasta La Vista... Traders? (The Future of Artificial Intelligence in the Financial Industry) | Financial Sense
- Yesterday's Broad Power Outage Likely Caused By Geomagnetic Storm | ZeroHedge
- Rising Rates and Shrinking Balance Sheets Pose Risks Ahead | Financial Sense
- Despite Mounting Losses, Mystery Trader "50 Cent" Doubles Down With Massive VIX Spike Bet | ZeroHedge
- To Frexit or Not to Frexit, Report 23 April, 2017 | ZeroHedge
- Confronting Russophobia | ZeroHedge
- "The Retail Bubble Has Now Burst": A Record 8,640 Stores Are Closing In 2017 | ZeroHedge
The most relevant financial news and articles from the Internets
- One Wall Street strategist just made a big call that should have... | Business Insider
- Here's the most disproportionately popular job in every state | Business Insider
- Why Trump's claim that he's expanding the military is absurd | Business Insider
- Swedish prosecutors arrest second suspect in truck... | Business Insider
- A wealth management veteran explains why understanding emotions is key to... | Business Insider
- Now's a great time to be a stock picker | Business Insider
- The new era of payment processing will change everything | Business Insider