The US stock market is now in a Long-Bull state, which denotes the rise is continuously but in a narrow range. Every day is rising, people want to wait for adjustment but it does not come. When it does not come they spend the time in empty waiting and just watch the price to go up. They afraid of missing out during the long bull market, so they cannot bear and entered at last, and the market turned down at once. This is the general situation of retail investors.
They want to buy, but afraid of too high, or some using their monthly salary to buy little by little every month, so what should we do?
There are some stocks known as anti-falling stocks or defensive stocks. There are some stocks always running above the 250-SMA, they are MMM, V, COST. Or just a few days are underneath the year line. These provide nice chances to enter. For some people use the 250-SMA to tell whether the market is in Bull Market or Bear Market, then they can be said always in Bull Market. Of course another method is said that a drop form the height of 20% enters into Bear Market. This is a stricter method, for such a drop always penetrated the 250-SMA.
Basically, the rise of defensive stocks are slower, so when it drop, the falling won’t be too much. People may ask any defensive or anti-falling stocks has high velocity? Any high rising stocks also always above the 250-SMA, surely it is the HOOD, but it depends on whether you believe the future of stable coins.
On April 7th S&P rose from 4835 to 6395 of last Friday, up 1560 points which is 33% in 3.5 months. A very steep slope which is sharpest ever in history. Since June market developed into small white candlesticks and volume had not grown as fast as before. There would not be any cut in interest rate this Wednesday, but if Powell release any hints of cutting in the future, such a good news will go with the result announcement of AAPL, MSFT, AMZN, META and SOFI….. Continuous record highs are waiting ahead. Beware of selling on good news!