The S&P 500 closed today at a new record high of 5,576.98, while the NASDAQ also notched a new high of 18429.29. If you are a long-term player, it’s no big deal. But if you are a trader, short- or mid-term, now is the time to think about taking profits.
August through October are going to be some volatile months! A correction in the S&P 500 to 5100 level would not be surprising, and a correction in the NASDAQ to 16,200 level would also not be surprising. Remember, I said that. And here is why: This market rally thus far this year has been very narrow. Narrow, meaning few stocks are setting new highs other than a handful of the big names if you’re a long-term player with names like Apple, Microsoft, Nvidia, Advanced Micro Devices, etc. It’s not a big deal. But expect a large correction in these stocks in the next 90 days. And if you’re trading TSLA, now is a good time to take your profit. An approximate 75-point move in 2 weeks is nothing to sneeze at. It closed at 262.33 today. The stock ran on a short squeeze, in my opinion. It could return to the 180.00 level. Although it is long-term, I would never bet against Elon Musk. However, TSLA does have numerous near-term challenges. Going long TSLA at this price and at this time probably isn’t a good idea, in my opinion.
Make a stock buy list. During this brutal correction, start buying the stocks on your wish list (I like buying them a little at a time until I get the amount I want); this gives a
good average price. Money is made when you buy a stock, not sell it.
I will provide my number pick (I own it). I think it can go 200-400% next year. But it’s not for conservative investors. It’s a highly volatile stock AI stock. and not for conservative investors.