The business of day trading is one that can shift in a microsecond. Amazing day trading opportunities are a bolt from the blue, and trying to predict them up to a year in advance can sometimes seem a fool’s errand.
That said, markets are generally on an upward trend this year. The housing market’s solidified, commodity prices are good, and as far as day trading trends go, everything tends to be trending upward. So it’s generally a good year for people who want to turn around some quick cash. Here’s a couple of events to look at in 2014 that will make or break some markets.
1. Federal Unemployment
That new budget Congress passed? It cuts off millions of Americans from their unemployment checks. There’s talk amongst Congress that the unemployment will be reinstated, possibly with back pay, but for now it’s gone. That’s going to cause a temporary fall in some stocks, especially ones that serve the low-middle-class. Look for a drop in stocks relating to those items that can be cut from a household budget—NYSE:KO (Coca-Cola company), for instance. A quick short on those early in the new year could pay off.
If you don’t short them early, then watch for the Congressional hearings and vote on the Unemployment; those same companies will get a bump if it’s extended, and a quick investment could see you getting in on that bump.
2. Tech Stocks
The big tech companies have mostly settled down by now. 2013 was a year of product releases – 2014 is looking to be a year of grinding out more of the same. There’s some social media sites that have gotten some play – I’d point to Twitter as a great example – but for the most part there’s a lack of the sort of volatility in the tech market that used to be great for day trading.
Well, at least with the bigger companies.
So, in 2014, keep your eye on smaller, more specialized tech firms. If there’s some that seem relatively stable, keep checking them for news on any new developments; that’s where the day trading gold is going to be in the tech world.
With Obamacare creating a whirlwind, and health care companies looking to find new ways to cut costs, look for an explosion of doctors providing Telehealth services. If there’s one industry poised to break absolutely wild this year, it’s this one.
The problem with this Telehealth trend is this: for it to be truly effective, most doctors will want to be using the same system. The industry is like the Highlander immortals—in the end, there can be only one. Investors have seen this, and so there’s a sense of caution around these companies. Most of them will fail. One is going to make some people very rich.
Here is my grand prediction for the year: There will come a time, in 2014, when a company providing these services gets its nose out in front of the pack, ever so slightly. This slight edge will snowball, until by the end of 2014 we know who the dominant telehealth company is going to be. By the time 2015 gets here, the word “telehealth” is going to be nigh-on a household name.
As soon as you can figure out which company it’s going to be, jump on that bandwagon and ride it to glory. Watch this market carefully, because if you guess this one right you’ll make a killing betting on the right stock. Double down by shorting the wrong ones, and you’re really doing well.
4. Ear To The Ground
The year 2014 is not yet upon us. There are things in the works none of us know about, and the winds of change will rock all our boats by the time it’s done. With day-trading, your day-to-day instincts are going to be far more essential than a thumbnail sketch of things to watch. After all, that’s what makes this game so exciting.
Still, keep your eye on those Telehealth companies.