January and February were awful months for the market.
It was one of the worst starts to a year we’ve ever seen.
The Nasdaq 100 and Russell 2000 fell over 20% from their recent highs.
For many analysts, including myself, a decline of 20% or more is considered “bear market” territory.
So, as all of this took place, my trading was light.
I’ve been taking tiny positions, and rarely during this time have I had more than 10% of my capital invested.
But that just changed…
As we discussed in yesterday’s Watchlist update, things are starting to look up again for the stock market.
And given what we’re seeing on the charts, I started making bigger buys last week and will continue to do so into this week.
Here’s why…
The S&P 500, represented by the SPDR S&P 500 ETF Trust (SPY) in the chart above, made back-to-back follow-through days last week, posting gains of over 2% on increased volume.
As you know, this is the sign I’ve been waiting for to get back into the market.
The Nasdaq, represented by the Invesco QQQ Trust (QQQ), is also showing strength, with big daily moves higher on high volume…
Is this a guarantee that the markets have bottomed?
Nope.
As always, anything can happen.
But the odds have greatly increased that the market will go higher from here.
And, of course, I want to own some stocks and participate in that move.
Getting Involved
Now, one stock that I brought to your attention in a recent article was A-Mark Precious Metals (AMRK)
When I first told you about this stock, I highlighted what I wanted to see before pulling the trigger.
I was looking for dips to become more and more shallow and for price to tighten up a bit within its consolidation range, which it did last week.
And as we talked about before, analyst expectations remain on the rise for this company.
So, when my level was hit yesterday, I bought shares at $78.10.
With the addition of this trade, my account is roughly 35% invested right now.
I have orders in place to buy a couple more stocks. If filled, that will get my account to about 50% invested.
From there, I will simply track my performance.
If the trades are working and I’m booking profits, I will increase my size on the next set of trades.
And if those work, I’ll go even bigger, with the goal being to get 100% invested as quickly as possible.
But remember… This could change any day. If the downtrend resumes, I’ll bring my allocation to stocks back down.
The takeaway from this update is not that you should go all in on stocks right now…
Instead, monitor the market, assess how your trades are faring and make adjustments as needed.
I’ll continue to keep you updated on the trade in AMRK as well, so stay tuned!
Embrace the surge,
Ross Givens
Editor, Stock Surge Daily
The post Why I’m Buying Stocks This Week appeared first on Stock Surge Daily.
