Where Is The Stock Market Going?

where is the stock market goingWhere is the stock market going?  It has been a very quick run up since the market bottomed out in February and that has me a bit worried.  It has been a very frustrating week so far for my stocks with early week gains getting beat up yesterday and a bit today.  I am invested in quite a few pharmaceutical stocks, which took a beating over the last two days because of major increases they enjoyed over the last few weeks. (Don’t worry, I am still enjoying double digit gains as of now)  Then I am also in ARGS, which is a very volatile stock that I would not recommend for those that can’t handle the stress.  And the final stock that I am now invested in is ARWR, which I feel will be one of those stocks that will go crazy over the next 12 months in a very positive way.  I got into these stocks about a month ago and have locked up some very nice gains.  I sold half of my original holdings and looking long term for the remaining shares.  If you are interested in reading about some of the stocks I like for 2016, you will want to read the article below…

Best Stocks To Invest In For 2016

where is the stock market goingNow I have some funds to use to purchase additional shares if the market gives me the appropriate opportunity.  But then again, I am starting to consider going a little short with this market.  I am thinking that it could be easier to get the gains I am searching for by shorting not the market as a whole, but a few individual stocks.  I have been working with a few of my students and we are doing very well.  But surprisingly, it is because we have shorted individual companies with major success even though the market has been rising consistently.  5 weeks in, we have taken $100,000 and turned it into about $170,000 and are now leading over 3,700 other teams in the national championship Stock Market Game.  (Just wanted to brag a little bit about my students)  But shorting energy stocks has been the ticket to our success and it is becoming increasingly clear that the market is getting ready to make a move.  So what to do, what to do?  I guess it still comes down to where is the stock market going?

where is the stock market goingLet’s take a look at the market and see where it is at and where it could possibly go.  As of the close today, the S&P 500 was at 1,989.  This is right there closing in all time highs again and this has me a bit concerned.  I mean seriously, the S&P 500 is closing in on being up 200 freaking points in only 30 days.  How many times has that happened in history?  I don’t know the exact answer, but I can guarantee you that it has happened that many times.  So let me ask you this, what is more likely to happen.  The market will continue to rise at this same degree or there will be some profit taking before the market continues it slow steady rise?  I think you can tell by my questions, which one I feel will be more likely to happen.  The thought of this market continuing this rise seems like a very big long shot to me. The Fed raised the interest rates and the market had a conniption.  After recovering from this hiccup, it seems to be starting to build for a big move one way or the other.  But the idea of people taking some profits and seeing this market have a slight pullback is something I fully feel is going to happen within the next 30 calendar days.  I don’t expect a huge crash, but I am guessing that we are going to see about a 5% to 10% pullback during these next month.  2040 seems to be a very real level of resistance that I am finding.  Over the last few days, every time we get around that number, we see a pullback.  I just have a feeling that we will see 1900 before we see 2100.  I hope I am wrong, but I am starting to think that finding a few dogs will be the best move going forward.

We are starting to see quite a few earnings releases that are not hitting targets that the pros were expecting.  The Fed is all about raising interest rates and that will mean that money will have another place to go.  The question now is what stocks should we consider shorting?  I have been very successful shorting the energy stocks over the last few weeks.  I was lucky enough to capture my gains before the big comeback as of late.  But, I have a feeling that when they finally reveal their earnings and more importantly debt, you will have a huge single day bounce downward.  Then again, we always could short stocks in the pharmaceutical industry that have experienced huge day gains lately that seem to be way overvalued.  But I like to stick to shorting stocks that are already starting a slow steady decline and are experiencing losses.  So what stocks should we go with and where is the stock market going?

where is the stock market goingMy first stock is Sears (SHLD $17.06), which I think will have very limited upside potential and a massive downside play.  They have been selling off all of their assets over the last few years and now have decided to turn all their properties into a REIT.  The fact is that the only thing they have left of any great value is their properties and now they have decided to separate them from the business in the form of this REIT.  And speaking of the REIT, what will happen to this once the stores start to close down as expenses continue to grow?  It is a very scary proposition to be apart of.  I see this company continuing to bleed millions of dollars every month and the stock eventually dropping down quickly.  And on top of this, you would be positioned correctly if the market took to a correction.  I think the upside for Sears is very small and the huge gain the other day took care of that for us.  What else can they do to push the stock up?  They would need to see the sales over this holiday season crush estimates, and I just don’t see it.  JCP came out and had week sales and I think you will see Sears have much of the same.  Either one of these two stocks would be an easy short in my mind, but Sears seems to be the better short after the quick run up.

At this point, I am going to bed and will add a few more shorts in upcoming articles for those who are looking to go that way.  There are quite a few stocks that I think could lead to massive gains in the short market.  Make sure to bookmark and stop back tomorrow to see what else I am considering.  Where is the stock market going?  I think it is going to go down in a very quick fashion, so let’s make some money on the ride.

As always, you will want to look at our penny stock program write up here to see some ways to really make money with penny stocks.  Where is the stock market going?  If you have a good idea, the program above can make you a ton of cash.

Where Is The Stock Market Going?

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Notice: Any information that is written on this site is for educational purposes only. It should never be considered as financial or investing advice. Anything you read on this site is just informational and that is it. I am no longer a registered financial advisor and licensed by the SEC. I am now just a blogger who enjoys writing about stocks and making money online. You should always seek a professional financial advisor for advice on investing and any stock you are considering. Remember that investing is inherently risky and you could lose all of your money. I am also an affiliate of some of the items discussed on this site. In other words, I may be paid for people buying stuff off of this site and the links on here as well. This is how I am able to keep the site up and running.