With markets at a frothy top how high is too high? And do we even care? One really interesting view came from Keith Harwood in yesterday’s Eye Opener market chat where he looked at the broader market sitting at highs and continuing to grind out new highs and then dove in to find out where the money is moving beneath the highs. Out of the groups of sectors that contribute to the record levels, some are outperforming others. When you look at those out performers you can drill down to spot breakouts and laggards catching up within these rich pockets. Take a look at our chat to see the move Keith found:
It sure doesn’t hurt to have an incredible tool that will help you filter through all of the stocks to find that breakout sector and pinpoint the ticker that has the highest likelihood of a sharp move. Couple that with Keith’s option experience and you can spot a call on Schwab that exploits its low volatility and cheap premium and offers a nice bargain trade.
His Investor’s Toolbox is super handy and easy to use. With that an his watchlist, these trades are pretty much dropped in your lap. Definitely check them both out.
Keep learning and trade wisely.
John Boyer
Recent Comments