From my previous articles, you will have picked up that I do not trade or invest in the indices.
The S&P 500, the Nasdaq 100 and the Dow 30 are averages of a group of stocks. I use them to guide me in market conditions and then scan for and analyze stocks that are performing better than the average in a bull trend and add those to the portfolio.
It is natural to want to try and find meaning to price movement. After all, the more we think we know, the more we may be positioned to profit.
This logic tends to be counterintuitive when it comes to the financial markets.
Tesla Inc. (NASDAQ: TSLA) shares crashed on Monday when CEO Elon Musk shocked Twitter (NYSE: TWTR) with an unusual proposition: he pledged to unload 10% of his Tesla shares if his followers voted accordingly.