SPY on the Market: No Need to Diversify

You are receiving this email because you signed up to receive our free e-letter DayTradeSPY's SPY on the Market, or you purchased a product or service from its publisher, Eagle Financial Publications. [SPY-on-the-market-banner-1200] [Trading Room]( [Pick of the Day]( [Inner Circle]( [Ultimate Trading Workshop]( [SPY Signal]( SPY on the Market: No Need to Diversify by Hugh Grossman and Ahren Stephens 06/13/2024 SPONSORED CONTENT [I Can’t Believe A Ticker Like This Exists]( Years ago, I came across a stock market ticker… One that has been my “edge” ever since… I trade it over and over again, every week… And thanks to this one ticker, I hit on 93.6% of my trades in 2023. [Here’s how you can too.]( It is commonly held that one needs to diversify his or her investments or spread the love around many different companies and funds so as to not leave oneself exposed to any one type of asset. This well-known principle definitely applies to those long-term retirement investments that you have no intentions of cashing out for years to come. After all, markets have their ebbs and flows. Different sectors will fluctuate at different times. For anyone not watching their accounts closely, diversification is key. As a trader, there is no better fund with which to diversify than the SPDR S&P 500 Exchange-Trade Fund (ETF) (NYSARCA: SPY). All 11 sectors are represented with SPY. Communications Services, Consumer Discretionary, Consumer Staples, Energy, Financials, Health Care, Industrials, Materials, Real Estate, Technology and Utilities… it’s all there; totally diversified with sectors. SPY is managed by State Street Global Advisors, an ETF pioneer and one of the world’s largest asset managers. This stock is benchmarked to the S&P 500 Index from S&P Dow Jones Indices, one of the most trusted index providers. As SPY touches nearly every corner of the American economy, it gives investors broad exposure to the worlds’ largest market and its most recognized brands, all in a single trade. No need to have detailed intel on many different financial instruments. Sponsored Content [Nvidia CEO Says It Will Spark "the Next Revolution" Beyond AI]( Declares this radical biotechnology "is going to be flat out one of the biggest [tech revolutions] ever." And this $10 stock is at the center of all. [Find out more.]( What I like about this ETF is that no one company is weighted so heavily that it directs the entire fund. Microsoft (NASDAQ: MSFT) is the heaviest at 7%. Nvidia (NASDAQ: NVDA) is 6.64% and Apple (NASDAQ: AAPL) comes in third at 6.35% while Amazon at 3.74% of the entire holding by weight. The reality, of course, is that if Microsoft does collapse, it will take other tech stocks with it, in the unlikely event that should ever happen. But in and of itself, if Microsoft were to go to zero, theoretically, SPY should drop only 7%. This diversification of risk is paramount to ensuring that “not all eggs are in one basket.” By spreading out the risk, we may not enjoy the exceptional gains, perhaps, with a single stock such as what happened to Nvidia recently on earnings, but we will also not suffer the dire consequences of a disastrous drop either. The more I study the market, the more I realize just how precarious trading is. We seem to be teetering on the brink of financial ruin with the way some companies are managed. Diversification removes much of that risk. SPY smoothens out that risk -- a very comforting feeling, I may add. With diversity comes volume. SPY trades over $38 billion on average per day, giving traders unmatched liquidity, which is crucial for order fills. With that ultra-high liquidity, you will find tight bid/ask spreads, allowing for easier profitability. Options now have daily expirations and are highly traded, enabling superior flexibility and a certain level of safety, if there needs to be one. Bear in mind, there is risk with all trading, and SPY is no exception. This stock can swing wildly just as any other. But it is consoling to know that the noise is tempered. [From Financial Fear to Good Fortune]( Jerome Powell just made buying a home more challenging, and the Magnificent 7’s momentum is collapsing. If these headlines don’t grab your attention, then you’re asking yourself when the FED will start cutting rates. With so much uncertainty, may I suggest an alternative strategy to just hoping…a method to enhance what you’re currently doing with more precision and confidence. [Learn the top 3 stock trends]( we’re looking at right now for explosive bullish potential. My biggest advantage is that I no longer have to spend countless hours analyzing stocks, industries, sectors, etc. to see what to trade. I am totally diversified with each SPY contract I buy. Essentially, I am buying into all the top 500 stocks on the U.S. market. I save many hours of scanning and investigating the many opportunities that make up a single SPY trade. I am now at the point where I can pretty much assess where the market will go during the day simply by looking at the fundamentals and technicals from 8:30 a.m. And that is what we do in the Trading Room. We analyze the news and events that will shape the trading day. Then it’s time for a check of the technicals, establishing support and resistance lines, chart patterns and trends. After one final look at market sentiment, we are ready to enter the arena, confident in our executions. If you are familiar with calls and puts, you are ready to learn and earn in our Trading Room. If you find this unique training facility is not up to your standards, a 100% money-back guarantee assures your full and prompt refund. [Click here to subscribe]( and join our next Trading Room session, daily, 9:20 to 10:30 a.m., ET. Not sure if day-trading SPY options is for you? [Click here]( to join our Sunday night Intro to Trading/Week in Review webinar at 8 p.m., ET. Sincerely, [Hugh Grossman][Ahren Stephens] Hugh Grossman and Ahren Stephens Editors, [Trading Room]( [Pick of the Day]( [Inner Circle]( and [Signal]( About Hugh and Ahren: [Hugh Grossman]Hugh Grossman has manned the helm of DayTradeSPY for over a decade now. A self-taught trader, who turned master trader, has learned everything about trading the SPY (the SPDR S&P 500 ETF). Hugh has been guiding his subscribers of Inner Circle, Pick of the Day, DayTradeSPY Signal, and the Trading Room to daily profits since 2010. [Ahren Stephens]Ahren Stephens has been studying the markets since his teens. He opened his first trading account at the age of 18 and has studied the stock market, forex market, and commodities markets for more than 20 years. Ahren is a licensed commodity broker, and was most recently an analyst at an award-winning, multi-million-dollar firm. With his knowledge he has been guiding his subscribers of Inner Circle, Pick of the Day, and the Trading Room to daily profits. About Us: Eagle Financial Publications is located in Washington, D.C. – only a few blocks from the Capitol. Our products have been helping investors build their wealth for several decades. Whether you’re a long-term investor or short-term trader, you’ll find the right strategy for you, including how to earn more steady income to spend now, preserve and grow your capital to enjoy later, and whatever other investment goals you have. 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