ETF Overload: Beware says Michael Burry

Passive investment vehicles like exchange-traded funds (ETFs) and index funds have become incredibly popular, by some estimates controlling at least half of the U.S. stock market. No less an authority than Warren Buffett recommends investing your 401(k) in an index fund. "I think it's the thing that makes the most sense practically all of the time," Buffett says. Or not. Michael Burry, one of the first investors to predict the subprime mortgage crisis (played by Christian Bale in the movie The Big Short), claims passive investing has created a similar bubble. His reasoning is simple. According to Burry: ... passive investing has removed price discovery from the equity markets. The simple the

DOW MEGAPHONE PATTERN 2020

The Megaphone Warning has sounded. Attention, all traders BEWARE of the Dow Megaphone pattern. Just a month off as I called a Bottom and a forthcoming MARKET CORRECTION. As of November 1, 2019 the tides are changing and I can hear the Megaphone being turned on. The Dow is now 27,300 but beware... Better watch out, better not cry, ProTrader Mike is going to tell you why...the Dow is about to take a crashing you know....it's the Megaphone Pattern! take a look at this chart and compare to the 2015 chart, almost exactly same with big gap to fill on the downside. So what's the play? Long UVXY now at $18.00 range and if the market drops volatility comes in and this stock flies high once again. The

How To Reprice Trades

When your trading and the price goes lower sometimes you feel stuck and in despair. Instead of just waiting in hope it comes back here is a good strategy you may want to consider. When the price comes close to your cost and you have a little hope sell half the position. If it goes higher you get out and it's not that bad. If it goes lower you rebuy what you sold and clip away at the stock all day long. See how it's done from the video of the Mojo Day Trading show. Keep it profitable, ProTrader Mike

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