In today’s Trader Tip Video, lets talk about the SPY Dividend Stock (SPYD), states technical specialist Chris Vermeulen, editor of The Technical Traders.
The market is currently down about 11% on the S&P 500 versus only 2.5% on the SPYD, holding up a much tighter pattern. If SPYD rallies, it may test previous highs, a potential upside of about a 5% move.
We’ve seen money moving into these more defensive plays, commodities, and gold in the last couple of weeks and months. If the stock market collapses, dividend stocks can sell down more than the stock market. For example, during the Covid crash, the SPY fell about 35%, while SPYD dropped by over 47%. This is why position and risk management are essential to protect your capital and grow your wealth.
Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.
