James “Rev Shark” Deporre has a plan to trade until the last quarter of 2021, and he is ready to share it with real money investors.
“I think it’s better to react to price movements rather than trying to predict what might happen,” he wrote recently on Real Money. “Not only do I avoid trying to predict where the market might be in a few weeks, but I even avoid thinking a lot about it.”
The ultimate goal of Rev Shark’s Q4 trading plan? “It’s pretty simple – look at the price development and look at how things go and make decisions based on that.“ If I’m wrong, I try to cut my losses quickly and regroup ”, a- he declared.
Timing is everything on Wall Street. And a much needed correction in September at the weakest time of the year, from a business perspective, prepared the stock market for a big rebound.
But that’s not all, said Reverend Shark.
“In addition, the recent corrective action has helped close the performance gap between large caps and indices on the one hand and small caps and secondary stocks on the other hand,” he said. “Much of the market has been in a bear market since February, but we’ll never know from the media coverage of the business. The recent weakness has helped to remedy this inconsistency to some extent. “
Another warning sign – third quarter earnings are ahead, and that coincides with more positive seasonality. “With many of my favorite names coming out of multi-month lows, I think there will be some positive price action as the focus shifts to valuations and numbers.”
Rev Shark said his focus right now is to find stocks that should see positive news over the next month or so.
“The technical conditions combined with the news should produce a good upward movement,” he said. “I will continue to discuss stocks like urban-gro (UGRO) , Butterfly Network (BFLY) , and others who I think will have positive news.