Fast Money Blog- 3/12/2021

This week we saw both volatility and retracement run wild on Wall Street. As I’ve discussed with you before, sophisticated software programs called algorithms are responsible for an estimated 90% of all trades placed on a daily basis. These advanced algorithms very often create wild swings in stocks with low floats. This requires that traders like you and I trade and invest with massive amounts of discipline.

I expect to see stocks like Chewy, Inc. (CHWY) and Pinterest, Inc. (PINS) to return to their highs within the next 90 days or less.

Always stay aware of your cost basis and use such strategies as buy back and roll out when when trading high volatility stocks.

You may have also noticed that stocks like Nike, Inc. (NKE) and Microsoft Corporation (MSFT) tend to maintain their stability during substantial algorithmic sell-offs. This pattern persists because large instate on wall street tend to hold stable stocks that pay dividend. Banks, insurance companies and hedge funds rely on dividends as a form of predictable residual income. For the next 6 months I ask that you do not succumb to greed, and strongly balance your account with actively trading growth stocks and dividend paying Dow components.

Stay patient! Stay positive!

Tyrone Jackson, The Wealthy Investor