Hubert Senters here.
Let’s take a look at Generac. So this is a trade that you can do off of a social signal when the big snow storm hit the entire southern region of the United States in Texas was a disaster.
So the play was you could see Generac popping right here six days and then it pulls back. So if you’re going to trade this type of stuff you have to be aware of the psychology that works in favor and against you when these things happen.
There usually going to be quick pops because it’s like oh, my God, there’s no generator. Generac’s got a low supply and high demand.
You’re going to get a spike in Generac stock for a couple of different reasons. Number one there was a mother nature effect. An active God or mother nature.
There going to be a spike in Generac sells for generator. It’s going to be shortlived. It might be a pop in their quarterly earnings but it’s not going to make their entire year.
Because this is not like they can ramp up production and make more. And when they do the disasters already passed.
It’s the same thing that used to be an old story. I don’t remember if it’s corn or soybeans. But there was a drop going to the midwest.
And the futures trader in Chicago they start seeing rain hit the windows outside of their offices and they’re like oh, my God, the drops over. Corn and Soybeans are now going to be safe.
And the Corn or the Soybeans rallied what they didn’t think about it. It was raining in Chicago not in Iowa. So you do have to take the psychology of the mass markets and apply that to your trades and think about like hey, this is probably going to be shortlived.
And believe it or not on that day whatever the story was either the Soybeans or the Corn had a huge rally and then trying to figure out oh, it’s raining in Chicago. It’s not raining in Iowa. We’re idiots. So that’s how the story goes.
But anyway, I just kind of want to educate you on how to deal with social signals and natural disasters if you play those.
It’s like playing a high stakes game of hot potato. If your stock holding a potato you’re going to lose money so you better release it quickly.
Now, talking about a high stakes game of hot potato that’s what the markets are ladies and gentlemen. And Mark Helweg is a Hedge Fund Manager that is telling his friends and family to exit stocks.
Now, if you want to find out why you need to register for the webinar which is Tuesday, February 23rd at 8PM EST. I will HYPERLINK you to this page.
Good luck. Hope it helps. See you on the next video.
Hubert.
