As an investor, my dream is to buy the bottom…
And to load the boat on high beta stocks on the dead low of a market selloff.
But I know it’s not feasible.
If it happens, it was probably just luck.
The best I can hope for is to get in at the very early stages of a market recovery.
Jan. 31 was the first follow-through day in the indexes.
We are waiting patiently to see if the lows hold.
Yesterday’s comments by the Fed regarding a full 1% rate increase by June will be a real test of this market’s strength.
But instead of watching the major indexes for clues about whether the bear market is over… I prefer to watch individual stocks.
The S&P 500 index didn’t warn us that stocks were melting down in December and January.
It won’t provide a heads up when the recovery is underway either.
All Eyes on High Beta Names
A few of the high beta names that got clobbered over the last few months have started turning up higher over the last five to 10 days.
For example, after getting absolutely clobbered the prior four months, Snap Inc. (SNAP) is up 70% off its lows.
Sea Limited (SE) is up nicely from its recent bottom…
Heck, Asana, Inc. (ASAN) was up over 10% Thursday morning while all the major indexes were bleeding red.
I’m not saying to rush out and buy these highly volatile stocks right now.
You still want to see them set up in some sort of a base and form a tight, low-risk pivot to buy off of.
But if these stocks are any indication, we could be in the early stages of the next bull rally.
Embrace the surge,
Ross GivensEditor, Stock Surge Daily