Part 2: Learning to Trade Risk-Free

Welcome to Rude Awakening for Tuesday, December 29, 2020.

Like I mentioned yesterday, this week I will be sharing some unique videos for you, different from what we normally send out every day.

After the survey I sent out last week, I learned a lot about where you all are in your investment and trading journeys. So, I wanted to put together some primer videos to teach you the basics so you will be able to take the most advantage of my daily market insights and our watchlists.

Yesterday’s video teaches you everything you need to know about options. Click here to watch.

We will be sending out more of these this week, but to continue to check back for updates, you can click here to see my YouTube page, where I will also be posting new videos.

Now, for a quick update on today’s market action…

Relief Bill Signed, Stocks Rise

Stocks were mostly higher opening up this morning and hit new record intraday highs once again, building on yesterday’s record closing levels.

As Yahoo Finance reports:

The three major indices touched record levels but pared some gains mid-morning, however, and the Nasdaq turned slightly negative. Stocks poised to benefit most from fiscal support and a strong economic recovery including cruise lines, airlines and hotel shares extended gains.

The rise came after President Donald Trump signed into law Congress’s $900 billion virus relief bill, despite suggesting he might block the package last week. After Trump signed off on the package, Goldman Sachs economists upgraded their forecast for first-quarter gross domestic product growth to 5% from 3% annualized, citing the boost to consumer spending the $900 billion stimulus package would confer.

Some equity strategists, however, had already priced in the outcome of more fiscal stimulus.

“This stimulus package — even though Trump had a little bit of posturing there – we expected this to go through. The news of it going through is not new news to anybody who was looking at the equity markets on a long-term basis,” Brian Walsh, Jr., Walsh & Nicholson Financial Group senior financial advisor, told Yahoo Finance. “The $600 stimulus, though, is weak from an individual standpoint. What that’s actually going to do for people in need is yet to be seen. But the package itself is robust, and it is helping small businesses. We’ll see how it fares.”

So, markets are continuing the march higher once again. As the day has gone on, some of the indices are falling a bit — the Nasdaq and Russell 2000 are down slightly on the day, and the S&P and Dow are flattening.

But, I want to call your attention to one more watchlist picks that are doing particularly well…

When we added Stitch Fix, Inc. (SFIX) to our bullish watchlist on Dec 8, it was trading below the $50 level. Since then, it’s shot all the way up above the $70 level, reaching a 52-week high of $72.24 on Dec 22. Now, it’s dropped to the $60 level, a pullback which could make for another buy opportunity. Even still, it’s up nearly 25% in just a few weeks.

Make sure to watch yesterday’s video on Options 101 to find out all about how to use them for gains… and then today’s virtual trading video to see how you can learn by doing, and trade options risk-free!

Have a great trading day, folks.

We’ll talk soon.


Scott Stewart

Scott Stewart
Editor, Rude Awakening

You May Also Be Interested In:

Free Money: How the Rich Invest

Wise investors look for more than just ROI. They look at the assets they get for free once they get their money back. That is financial intelligence, and that is why the rich get more free things than the poor.

Scott Stewart

Scott Stewart has been trading for decades. He has acted as an analyst and educator on the stock market for just as long. As your Rich Dad's Weekly Cash Flow analyst, Scott works tirelessly to ensure you know everything you need to do when entering into new positions, and adjusting trades as you go along....

View More By Scott Stewart