Year 2020 has the potential to become Ver 2.0 of Dotcom bubble (although Year 2017 has emerging bubble). In Ver 1.0 of Dotcom bubble in Year 2000, Nasdaq and technology stocks surged to sky high prices over 5000 points, then falling to about 25% level of 1200 points.
After 2 decades later, currently in Year 2000, Nasdaq has strong potential to challenge the 10000 points milestone, a great news for trader who buy high sell higher. However, the time bomb is waiting for those who could not control the greed, turning short term trading into long term investing for technology stocks.
The global stock market usually has to go to “paradise” (over 75%-90% optimism) first before falling to “hell” (below 10-25% optimism). The market cycle is fighting between bull and bear, while entire market is going up gradually over the years (eg. Nasdaq is about 2X from 5000 towards 10000 points for market peaks in 20 years).
Year 2020 could be ideal for shorter term investing with momentum trading. Some strong fundamental stocks could be used as excuse to support in share prices, for every 10% up in earning, price could go up more than 20%. In fact, share price is mostly greed driven, business won’t improve significantly in just a few months but people mindset could change overnight, eg after US-China trade war may “cease fire” soon.
Readers may search for global technology stocks which may benefit from ver 2.0 of dotcom bubble in Year 2020. Focusing on technology stocks with strong fundamental and uptrend prices for short term (eg. last 6-12 months). Main strategy would be buy high sell higher but S.E.T. (Stop Loss / Entry / Target Prices) must be set in trading plan.
Dr Tee will share more details of global momentum stocks with other 10 strategies for investing and trading in free 4hr investment course. Register Here: www.ein55.com
