Recently, while watching “America Gangster” starring Denzel Washington (one of my favorite movies), for the millionth time, I had a realization. When Frank exited the church and found the detective waiting for him, he knew it was over. It was time to pay the piper. He had lived the life, made hella money, but it was over. All good things must come to an end right? Wrong!
We ran up a check for six consecutive months on these tech stocks without a dull moment, until the most meaningful pullback in June.
You may feel like it’s over for you if you lost a lot of money in the pullback. Maybe you had to pay the piper too. The good news is that it’s not over for the tech boom, it’s just time to let them breathe a little bit.
When you make too much money too fast, the streets call that “ran up a check”. The money came so easy for retail traders like you and I that it felt damn near illegal. Now I see why people get nervous when you start talking about big money without busting a sweat.
It seemed like the big boys on Wall St were dropping confetti from the sky to celebrate New All Time Highs daily. It felt like some kind of cheat code in a video game. All you had to do was place bullish trades on Facebook, Apple, Amazon, Netflix, Nvidia, Google, & Tesla and you were money every time. Even as a rookie student you may have found yourself flipping your account by 300% when you didn’t even understand basic spreads! Now that’s a come up!
Now you might be wondering why the cheat code is no longer working for you. This is normal. We are experiencing a sector rotation.
For six months the tech sector had the juice and now they are gassed. The juice must flow to another sector. For the time being, that juice is now flowing through the Financial and Biotech sectors.
Too bad they don’t teach this education in books. You only get this wisdom from living it. See, you paid for some wisdom when you lost your money in the tech pullback. That’s still a win for you. You will be better prepared for when the next sector rotation comes.
You have to learn how to bend in the wind but don’t break. Hunt for the money where the money is being made. When it is no longer present, move on to the next.
Trust me, you’re still going to catch some nice moves in tech but not like in 1st quarter. I don’t want you to be lost just because tech is taking a breather. Get back to the courses, review as much as possible and stay ready!
If you are not yet a student then make sure you subscribe to Walkstreet Jackboyz for the classes.
Until next time… my eyes are focused on running up another check and it’s looking like the Financial sector got what I need. I have GS, JPM, C, BAC, WFC, & MET in my watchlist. Stay focused and keep your eyes on the money. Have a great weekend Wallstreet Jackboyz and girlz!