Tuesday: February 6, 2018: Why StockJumpers loves the smell of fear in the morning ...
America’s Stock Market Crash of 1929 was a powerful market crash that started in October of 1929 after the Roaring Twenties economic “bubble boom” finally popped. The Roaring Twenties were a time of peace and prosperity and the U.S. stock market soared as new technologies such as radio, the automobile and airplanes became commercialized. Many Americans speculated in the stock market, often with large amounts of borrowed money, and became extraordinarily wealthy. By the fall of 1929, the stock market peaked and then plunged, financially-ruining many stock investors (some of whom jumped out of tall city buildings to their deaths). As the Crash of 1929 unfolded, thousands of banks failed, unemployment skyrocketed and the United States entered into the Great Depression, which lasted until the late-1930s.
ARE WE ABOUT TO REPEAT THIS?
At StockJumpers we love the smell of fear in the morning… because like the General said in Apocalypse Now… “it smells like victory”. Actually we really do love the volatility because our technology works better in profiting from it.
So what does one of the biggest point losses in history mean? It means that volatility is back and folks are taking profit from the biggest bull market ever. Does it mean the end to it? Nope.
Its more likely than not that this is a real correction that will see-saw back and forth in the thousands of points, and may settle in the low 20’s before its all done, but then it will roar back to life and be stronger than ever. This is all about profit-making by the smart money as as long as there is no black swan catalyst… the gravy train returns. I even expect the DOW to end the day up a few hundred.
For traders – we LOVE IT!. For investors not so much.. cause they buy and hold pray they still have a retirement account (which is dumb.
We did well yesterday with our LONG call on SKYWORKS and we expect to nail today’s trade as well. With the market roller coaster ride this week, its fitting we are trading TCS – The Container Store today with is massive volatility on release.
Here is what we expect…
The Container Store TCS sells boxes & organizational things -
Market analysts’ consensus outlook for the upcoming year seems optimistic, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching $19.5M in 2021. Fun…fun and more fun.
But do you believe them? Especially after yesterday? Let’s drill down a bit shall we…
They report after market today.. and here is what is expected.