Don’t be alarmed by the shaky nature that the Nasdaq ($COMPQ) displayed last week… It actually produced a very stable way for us to make a big profit.
You see, if we’re hit with a full-fledged tech-wreck, there’s a couple of stocks that could provide us with a huge protection payout when everything else might be falling.
If anybody ever told you that a correction is a bad thing, I’m about to convince you otherwise by showing you how you can hack tech stocks for unprecedented gains…
In Mondays’ WSI TV episode, we outlined how Tesla (TSLA) displayed a fantastic amount of resilience as the Nasdaq sharply declined 3.8% in a matter of 2 days.
During this, Tesla gained 0.5%.
And it’s progressed even further since then—it’s now up 1.8%.
The reason for this is because Tesla actually belongs to two industries.
It’s obviously a tech stock—as most stocks in the Nasdaq are—but it’s also an auto stock.
This hybrid nature of Tesla exposes it to a diverse set of factors when it comes to the movement of its stock, but Tesla isn’t the only tech stock to comprise of this hybrid factor.
Amazon (AMZN) also belongs to this unique category.
While Amazon is primarily a tech stock, it also belongs to the retail industry—even more now since its recent takeover of Whole Foods (WFM).
Amazon is consistently diversifying its business structure, and will probably have its hand on a couple more sectors before you know it.
This is extremely beneficial in the sense that if one sector it belongs to starts to descend, it doesn’t mean Amazon’s a sinking ship.
It’d take a market crash or a big correction to pluck Amazon from the heights it’s currently experiencing.
Now, you may look at Amazon’s chart and notice that it was negatively affected by the fall in the Nasdaq, but the most important factor you need to consider is that it’s now back above $1,000.
That resilience is what’s going to provide your protection profit from any possibility of a tech-wreck.
If you look at the stocks that are primarily tech, you’ll see what I mean.
The day before the tech decline, Apple was trading around $155. The lowest point it reached after that was $142.27… that’s an 8.2% loss. Although it’s made a small advance, it’s still 6% down.
The same goes for Google (GOOGL), which is 2.7% down; Facebook (FB), which is 1.1% down; Microsoft (MSFT), which is 2.1% down; and NVIDIA (NVDA), which is down 2.3%.
The resilience shown by Amazon and Tesla clearly outlines the beneficial nature of their industry hybridity.
