In a contrarian investment strategy, investors deliberately buck the direction of the market by selling when others are buying and purchasing when most investors are selling. Warren Buffett, chairman and CEO of Berkshire Hathaway, is renowned as a contrarian investor. Investors who hold a contrary opinion think that people who claim the market is rising only do so when they are completely invested and have no more purchasing power. The market has reached its pinnacle at this time. Therefore, when forecasters foresee a decline, they have already sold out and the market can only rise from here.
The market has been range bound for the last few weeks with volatility on the decline, and earnings all over the place. So where to go to look for a trade? Nike has already had Earnings and is near a low of the year, so seems like a good option. As a contrarian that can mean only one thing to me: I have to make a trade with the assumption it will go up from here over the next 45ish days. We will do that by making a Long Call Vertical trade to bet that it starts to head up over the next couple months. For more on my trading and how to join me in real time, see below. Watch the video to get the details. Kal Trading Risk Disclaimer All the information shared in this video is provided for educational purposes only. Any trades placed upon reliance of SharperTrades.com are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, commodities, options and forex, there is also substantial risk of loss. All tr