Sell the Losers, Buy the Winners!

Welcome back Mooers,

In today discussion, we will talk about the factors that may have caused the US stock market correction and what we can do to reduce losses.

Last week (17 Jan 2022 to 22 Jan 2022) saw major indexes falling sharply and breaking several key support levels. Many Mooers may have sold their position to avoid greater losses.

However, it is noted that none of the factors (inflation, omicron variant, interest rate hikes, etc) had really hit the US stock market badly. This is because, there are still 2,355 winners, as shown in the picture below.

Thus, at the current moment, it may be a good idea to sell the losers and buy the winners.

So, you might be wondering who are the winners.

They are:
Stocks that belongs to the following sectors.
(Based on the past 1 month)
Energy
Consumer Staples
Financials
(Based on the past 3 months)
Energy
Consumer Staples
Utilities

How about let’s compare some consumer staples stocks using the $Futu Holdings Ltd (FUTU.US)$ MooMoo ‘stock compare’ feature.

As shown in the picture above, we can see that the 3 consumer staples stocks ( $Kimberly-Clark (KMB.US)$ , $Colgate-Palmolive (CL.US)$ and $Procter & Gamble (PG.US)$ ) have been on a uptrends for the past 3 months.

Do you want more ‘stock compare’ examples? No problem! Simply click on the following articles to view more.

Do the leap of faith, jump out of the boat and fly to the moon!
https://www.moomoo.com/community/feed/107671255318534

Airlines stocks are currently undervalued!
https://www.moomoo.com/community/feed/107665431724038

Next, we look at the top 8 active stock put options , as well as top 8 active stock call options, for 21 Jan 2022, as shown below:

(Top 8 active stock put options)
$Peloton Interactive (PTON.US)$
$Netflix (NFLX.US)$
$Lucid Group (LCID.US)$
$Tesla (TSLA.US)$
$Amazon (AMZN.US)$
$Palantir (PLTR.US)$
$Microsoft (MSFT.US)$
$Apple (AAPL.US)$

(Top 8 active stock call options)
$Cleveland-Cliffs (CLF.US)$
$Vinco Ventures (BBIG.US)$
$Intel (INTC.US)$
$Ford Motor (F.US)$
$Boeing (BA.US)$
$Disney (DIS.US)$
$AMC Entertainment (AMC.US)$
$NVIDIA (NVDA.US)$

Please vote which strike price for the $Meta Platforms (FB.US)$ stock options you are trading at.

Bear Call spread
For beginners, bear call spread is an options strategy that buy and sell the same number of call options. Usually, one is expecting a decline in the price of underlying stock.

Both option have the same expiry date and same underlying stock. However, the strike price is different. The call option that being sold will have a lower strike price than the call option that is being bought.

That's all for today, and thank you for your support and likes.

This is the 13th article for my MooMoo goal in 2022.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more