IMO, it is the chart that matters not just sentiment or logical reasoning. Remember 90% of trades are institutional, hedge funds and MM's which are all programmed trading. If one wants to lower their $$ risk in play one can trade shorter term options or farther out LEAPS besides intraday trading. Yes metals have done well recently. That said, it should not be all one's holdings, but %. Scalping the big names in any sector where the short term charts give buy signals is another way to keep risk down while banking profits.
It is all about excesses, either of lows or highs. Oil gained 30% in 2 days. One doesn't need to be a scientist to see/know that that value will not stay there. Oil must go back to at least $45 and more likely 50-55 in the not too distant future. It is more likely that from todays price of $28.34 closing and with gold at $1645 that oil will double before gold. The world depends on oil more than gold at the present time. Without oil there is no food supply etc. Another factor is that markets and sectors do not often go straight up. Making short term trading less risky than holding. Singles and doubles can bring sustainable cash addition while home runs greatly increase strikeouts.
Production and sustainability are impossible to maintain down here in oil. Gold can stay right here and the industry will do fine if needed or even closer to 1400's.
Buying fear and selling euphoria is just as valid today as when the phrase was coined.
A short term swing trader or scalper could have pocketed big bucks on MRNA recently.
One could have doubled their money in 6-8 days with BA. What kept most out of the trade? EMOTION.
The two most paralyzing emotions for traders are fear and greed.
Volatility is here to stay for a while. For me, I will trade the movement. I refuse to ride the downs.
All IMO only.
Caution: one should not trade what they do not understand. Each of us should have our own systems etc. Emotion is the most difficult aspect of buying and selling and effects profitability more than the system itself.
Green Trading Everyone.
