Posted December 21, 2020
By Scott Stewart
5 Ways to Buy the Dip
Welcome to Rude Awakening for Thursday, December 17, 2020.
This morning, markets fell way off, despite the stimulus package passing.
The hype around the stimulus package was basically built into all the gains we saw throughout last week.
Now, with a new strain of the coronavirus popping up, reduced euphoria around the vaccines, we are giving back a lot of those gains.
As I write, the S&P is down 50 points, the Dow is down 185 points, the NASDAQ is down 172 points, and the Russell 2000 is even down nearly 20 points.
Another force driving markets lower is oil
3 Ways to Capitalize on Falling Oil
Oil pricing is dropping everywhere.
But, it makes for an opportunity for you to buy in at a lower entry on these companies, with the belief theyll rise again once the markets get back on solid footing.
First, look at Callon Petroleum Company (CPE), which is down nearly 7% on the day.
Then theres Apache Corporation (APA), one of my personal favorites to trade, down about 2% on the day.
And last for oil we have Occidental Petroleum Corporation (OXY), down over 4% on the day.
These are the three to look at for entry, and on our buys watchlist.
Another sector for purchase
3 EVs for Trading Potential
The electric vehicle market is seeing a lot of movement right now.
First, look at Tata Motors Limited (TTM), a lower priced stock, down over 8% today, this is a cheaper way into the EV markets, and its fallen way down today.
Also, we want to look at Tesla, Inc. (TSLA). Today it was officially added to the S&P 500, which is going to make for a lot more volatility with this stock today.
These make for good trading opportunities.
Have a great trading day, folks.
Well talk to you tomorrow.
Scott StewartEditor, Rude Awakening