U.S. stock market is setting two traps for investors

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The U.S. stock market is setting two traps for investors, says TheAroraReport:

Nobody likes to fall into a trap. Yet investors may soon be falling into two traps that the stock market has potentially set up.Please click here for an annotated chart of ETF S&P 500 ETF SPY, +0.01% which represents the S&P 500 Index SPX, -0.01% Please note the following:

• The potential bull trap is characterized by the breakout of stock prices above the green line shown on the chart.• Only one of these two traps will become valid.• Under these circumstances, investors ought to pay attention to Arora’s Third Law of Investing and Trading: Making investing and trading decisions based on probabilities is the only realistic and profitable approach.

Stocks to watch Stocks with little direct exposure to China, such as Google GOOG, -0.20% GOOGL, -0.30% Amazon AMZN, +0.06% and Facebook FB, -0.07% are likely to be least affected. Stocks with direct exposure to China, such as Apple AAPL, +0.19% Starbucks SBUX, +0.82% Nike NKE, +1.18% and Boeing BA, -0.28% are likely to be most affected. Semiconductor stocks, such as Intel INTC, -0.46% AMD AMD, +2.29% Micron Technology MU, -0.92% and Qorvo QRVO, +5.99% may see wild swings.

 

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TheAroraReport Someone didn’t read the article.... 🙄

TheAroraReport Dead cat bounce folks

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