Yes, you read that correctly. This Coronavirus is indeed a blessing in disguise. Let me explain.
We have been in desperate need of a pullback after a rip roarin’ stiffy of 2019 that was the 30% increase in the S&P. Those kinds of years do not happen on a whim. We have to pay the piper at some point. And now is that time.
Now, you might be sitting in front of your computer, looking at your Robinhood account’s 404 error and saying to yourself “well guess I’m big time fucked here, eh?” and yes, while you decided to pick the world’s most retarded broker, you also have been watching your net worth fall somewhere between “oh lord” to “dear Jesus” levels.
Ok now that we got the brow beating out of the way, let’s take a look at what has been hammered the most:
I’m not saying any of these are going to be the next big trade. And DO NOT try to catch the falling knife here. That is a one way ticket to straight Shitville. What we need to look for is strength in the oil sector before we see a turnaround in these beaten down stocks.
What will lead to a turnaround in oil is any news that the coronavirus is subsiding. This is very obvious, obviously. However, what we are really going to be taking advantage of when we start to see a turnaround are the leveraged ETFs.
TQQQ and TECL will be a buy when this eventually takes a turn for the better. Tech and Basic Materials have been scorched over the past week. The best way to play a V shaped recovery will be to pick up some beaten down leveraged small caps (TNA), some leveraged semi’s (SOXL) and FAANG (FNGU).
Be ready when the recovery comes, because it will be swift and relentless. See? Coronavirus is a blessing in disguise.