We are looking to make 2020 a great year. 2019 was a tremendous year for the stock market. Given the late 2018 slide 2019 was very unexpected for most. For Big Wave Trading our only expectation is to make sure we cut our losses short. Risk Management is and will always be our #1 priority. Futures are indicating a higher open for stocks. Will 2020 carry the 2019 rally’s torch? Historically speaking there is a strong possibility we see 2020 higher. This does not mean it will become so. Discipline in our approach with proper risk management will maximize our opportunities in this market regardless of where it ends up. If you stick with Big Wave Trading in 2020 we will help you make this year the best year of your trading career.
Biotechnology stocks have been performing quite well. We have been on top of more than a few high-flying stocks. Top fundamental stocks like VRTX, ARWR, and REGN have jumped out from their first initial consolidation pattern. But there are plenty of other names producing some great results. The key is to have the discipline and game plan to attack these names when they produce a signal to act. If you are unwilling to be patient because of your opinion of the market you will miss highfliers. These types of stocks make or break your trading year. Want to outperform the market by 3x or more? You must get on stocks that move significantly. Otherwise, you will be better off buying an index ETF.
Peeking at AAII Sentiment we see neutral respondents once again at the top of the survey. 40.91% of respondents believe the market will be flat over the next 6 months. Essentially, they have no skin in the game. Bears are at 21.88% and Bulls at 37.22%. While the number of Bears is low the Bullish reading is par for this market’s course. In the end, we do not have a market where there is an extreme number of bulls. In fact, the lack of excitement for a market moving double digits in a year is something else. Are we all that pessimistic? Regardless, we continue to focus in on price and our risk management process. Our focus will remain what is in our control rather than what is not.
We hope 2020 is your best year. Big Wave Trading will help make it so. Stick with us and let your account grow.
