3 Popular Stocks To Sell Right Now

Knowing which stocks to sell is just as important as knowing which stocks to buy. And many popular stocks scooped up during the latest bull market could be the first to tank if any turbulence hits.

Indexes are just off their all-time highs, but uncertainty is still very high.

The CBOE Volatility Index still hovers around 30, which means even some very popular stocks could sink if the market takes a dive.

It's not that these are bad companies, or that there is something wrong with the business.

They are too extended, and if they begin to fall, it could get ugly very quickly.

Today, we cover a few stocks to sell, in case we see a big dip.

When markets crash, very few stocks trade above their 200-day moving average. In 2009, only 5% of stocks traded above the 200-day MA when the market fell apart.

In March of this year, we saw the same thing happen.

If we get a crash because of election difficulties, the continued spread of COVID-19, or any other economic or geopolitical event, most stocks will trade below their 200-day moving average.

Stocks trading more than two times their 200-day moving average are vulnerable to massive declines of 50% or more if we have a market crash.

Stocks that have made that type of powerful move up are generally the more popular stocks of the day.

It is hard to sell those when everyone loves them. History tells us it is usually the right thing to do, especially when volatility is rising.

Here are a few stocks to sell before now…


Sell This Top Lockdown Stock

Take a look at shares of Peleton Interactive Inc. (NASDAQ: PTON). Peloton has been a lockdown and shut-in coronavirus superstar stock. People that are staying inside have ordered these interactive, connected exercise bikes to stay in shape.

Sales have spiked, and the stock has flown higher this year. In the last six months, the stock has soared by more than 300%.

When we see prices crash, that's going to reverse direction quickly. The 200-day moving average of this stock is just 53. The stock has to fall by more than 60% to reach that level.

1 2 3
View single page >> |

Disclosure: None.

How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.