If the Market Gaps Up in the Morning, What Do You Do?
Hey everybody, this is John. Welcome to the free video. I did wait until the futures markets opened up. It's Sunday. Half-time Super Bowl. 7:51 pm right now, Central. And I'm a little surprised that the Nasdaq futures are actually up. I thought we might see more of an implosion. We were essentially flat going into the weekend.
This makes sense, though. I'd actually like to see some short covering tonight. I'm not planning on trading tonight, but if we get a situation where we gap up tomorrow, I would look initially at selling it. Keep in mind, this market is an equal opportunity dream-killer. If there's a ton of shorts going into weekend, hoping for Armageddon, very likely they get their heads ripped off. But keep in mind, no doubt, that there is a rotation going on, and there is money coming out of stocks like LNKD.
Where is it going? In the premium video, I talk tonight about where this money is flowing into. It's important to understand where is the money flowing into. It's definitely coming out of LinkedIn, right? It's definitely coming out of Netflix. It's hard to argue that it's coming out of Facebook. I mean, FB is near all-time highs. But obviously there's some selling there. One thing that's interesting, too, is that the biotech sector continues to see an outflow, as well. So you're seeing these kind of speculative issues having problems, but money definitely flowing into other areas of the economy.
What about oil? Well, it's funny, I used to do a lot of research on the concept of peak oil. The idea that there was a limited amount of oil on the planet, and it was going to drive oil to $300 a barrel. And at this point, as technology has improved--this is something that Peter H. Diamandis talks about in his book, "Abundance"--that technology continues to improve essentially to assist the human condition, and technology has improved so much, with fracking, that it's extracted more oil found in reserves than anybody thought possible, and this has created a situation that nobody anticipated, and now you've got oil prices this low, and a lot of time and energy and money being put towards other types of energy, like solar, and clean energy. Oil is going to be down for a long, long time, and the type of impact that's going to have--I'll talk about that in the preview video, as well. But keep that in mind. This is a big deal. I predict that at this point in 2017, the U.S. government is going to have to go negative with interest rates. Not a big deal for us traders. We'll talk about how to handle that.
Now, if you're newer to trading, good news. For those who are newer to the whole concept of options--Even if the world is imploding due to deflationary pressures and negative interest rates, it doesn't matter. If you know how to trade options, you can make money in that environment. So based on this--we've actually had a lot of newer people come to our site--so Henry and I are going to do a free webinar on February 8, 2016. Monday. 7 to 8 o'clock Central.
We'll talk about why options offer far greater profit potential than stocks, with lower risk, and how even beginners--If you're a complete newbie, you got no clue, that's fine. Options for income and wealth generation. When to buy options and when to sell them. Why you only need to know a few key strategies, and ignore the rest. My pet peeve about options trading books is that they are overly complicated. It doesn't need to be. How to easily avoid the common mistakes new options traders make. Okay, so:
This will be a free webinar. If you consider yourself an advanced options trader, I'm just gonna be up front: This is not a class for you.
So, hope that helps. You guys have a fantastic evening, and good luck to whomever you're rooting for in the Superbowl. See you at the next update.