The markets were on fire Friday. 

The S&P 500 popped off the 4,000 resistance level and screamed into the close. 

What a difference a day makes. 

Yesterday, the S&P 500 was dangerously close to a dramatic break under the 200-day moving average. And then a magical messenger arrived to save the bulls from the depths of trading hell. 

Meanwhile, the Bears were torn apart. 

In a stunning development during the Thursday trading session, momentum miraculously turned green. And the heavens parted…

Thank You, St. Raphael

The S&P 500 was flirting with disaster yesterday. The critical 200-day moving average took us down to about 3,940. A break under that line in the last year has fueled dramatic selloffs.

Then, at around 1:30pm ET, Atlanta Federal Reserve Bank President Raphael Bostic said that the Fed could “pause” on its rate hikes by late summer. 

Bostic also said that he’d like to see rates increase by 25 basis points during the Fed’s meeting in two weeks. 

Now, here’s the thing…

Bostic isn’t a voting member of the committee. To be honest, who cares?

But it didn’t matter. The algorithms caught that headline and engaged in a massive feeding frenzy. Suddenly, we weren’t talking about a breakdown in the financial markets. 

We were talking about a move back to 4,050 level as soon as Friday. 

It didn’t take too much volume to get to that level. 

It just required a lot of short-covering mixed with low-volume bids. Even junk stocks like ChargePoint Holdings (CHPT), which missed earnings and revenue expectations BADLY, squeezed higher on Friday. 

The stock’s $10.50 call expiring on March 3, 2022 traded for $0.12 (that’s 12 cents) at 9:45 am. An hour later, that contract was up more than 650%. 

The stock was down as much as 10% at the open and nearly finished even.

This is what happens when momentum turns positive. Capital flushed into the market in a dramatic fashion. It creates incredible short-term rallies that can take up to new heights quickly. How high will it go?

Well, I think there’s a specific level to watch.

4,100 And Then?

Federal Reserve Chairman Jerome Powell will speak on Tuesday. 

And to me, this feels VERY reminiscent of the April, August, and December selloffs. We had negative conditions for a few days…

Then, we pushed higher on just a small amount of “good news…”

And then – straight down. 

Nothing has shifted in the economic data that would suggest this market is healthy, and not overstretched. We’re at 22x earnings. That’s not where bear markets bottom out. Historically, it is much lower. 

More important, consider the fact that our economic data is running hot on the back of expanded economic conditions. The problem is that we have hot jobs data, hot manufacturing data, and hot inflation numbers. 

People want to say it’s because “the economy is strong…” but the reality is that it’s largely based on an expansion of credit and leverage over the last few months. In October, economic conditions bottomed out. 

In November, credit conditions expanded, the dollar weakened, and consumption resumed. There’s usually a two-month lag on this economic effort. The problem is that it can’t last forever. 

This economy is going to hit a wall at some point – and liquidity will start to dry up once again. At that point, look for the market to face the consequences. 

For now, enjoy the short-term rally. My target is 4,100 which has been a major resistance level over the last year and source of selling. 

That said, the higher we go… the more pain there will be in the end. 

Be very cautious – and use any short-term rallies to take gains. 

To your wealth,


Garrett Baldwin

Market Momentum is Green

We lifted our hedge position with the Proshares S&P 500 Short ETF (SPY) after momentum turned Green for the Tactical Wealth Investor. And while the “loss” on the hedge was a meager 1%, we cheered as our top-performer Mosaic (MOS) eclipsed a 24% return to start 2023. Right now, we’re very worried about the possibility of much higher rates. That’s why we packed our money into one of the best business development corporations (BDCs) in the world. Now’s the time to buy after bond yields declined on Friday. You’ll be happy you owned this stock before March 15.

I don’t have the finger strength or the mental acuity to do something like this. 

This image gives me goosebumps just looking at it, even if it isn’t real. 

The thought of the markets soon testing 3,900 is also giving me vertigo. 

It appears we’re not on a collision course with this resistance level. 

I want to explain what happens next.

JPMorgan Warns a Cliffhanger is Coming

Today, we saw another wall of selling at the opening bell. 

Hedge funds are using any short-term strength to unload positions and reduce equity exposure. Meanwhile, the statistical arbitrage (aka “Buy the Dip”) crowd is using short-term selloffs to squeeze intraday gains. 

The result is a turbulent market.

That crowd will eventually tire out at key support levels. With momentum red (it’s been since last Tuesday when the SPY was above 400), I think we’ll see a test of 3,900 soon. 

At that point… the buyers might go away. And the selloff will get “real.” 

Since our negative signal hit around 11am ET on February 21, the trend lower has been fueled by major intraday swings.

But the trend remains lower. And the selloff has been steeper in its move than the previous declines that stretched from February 2 to February 17.

Things could start to accelerate downward quickly without support. 

JPMorgan’s trading desk has warned that things could start to push lower in a global “risk off” event at that 3,900 level. Wrote index trader Jason Hunter: 

“Other markets that have been sensitive to the China rebound story are testing key chart levels as well. A break there has the potential to feedback into western markets as global macro sentiment may sour.

“Even after the recent setback, the S&P 500 Index still looks overvalued relative to the shape of the money market curve. We have used versions of regression models based on that relationship to not only show the limited upside for the index (4100-4200 resistance), but also show asymmetric downside risk that is still present on the residual chart.”

Hunter notes that the fair value for the index is slightly under 3,800. 

And that’s exactly where I expect we could head before a short-term bounce. Hunter also notes that a retest of the 3,500 lows would be a two-standard deviation move. 

While that’s not out of the cards, it speaks to where things could move due to ongoing frustration.

The last time we had the 10-year bond pressing 4.1% was when we hit the bottom in October. Toss in concerns about geopolitical tensions and red-hot jobs data, and we could quickly move lower. 

I know that isn’t what people want to hear in the short term. But it’s vital that readers understand that we’ve been deadly accurate around our momentum reading back to the start of the November 2021 selloff. 

In fact, we’ve called the top every time, and called the bottom as well. 

It’s all a matter of institutional flow and how to properly measure it. 

I don’t know how far the market will move lower. I just know when to get out of the way. And when I get a negative momentum reading, I quickly take action and start to prepare for what comes next.

What’s Next?

Over at Tactical Wealth Investor, I offer a free research report around the “Six Ways to Trade Negative Momentum.” 

That report alone is worth the subscription price. I have hedge funds and private equity readers who abide by it, and I’m effectively giving it away to my readers here. 

Now is the time to not only take advantage of the market weakness with the inverse ETFs that I’ve recommended here, but it’s also time to prepare for a major dip. When the market sells off and momentum goes red, it’s a very good time to move to cash. 

If you’re a S&P 500 ETF (SPY) holder, would you rather have sold at $402 when the indicator went negative, or be holding it now with the threat of a breakdown under $390 looming?

Then, when momentum does turn positive again – and it always does – you’ll know how to take advantage. Especially with the best stocks in the market. 

Right now, I’m putting together a NEW report for Tactical Wealth Investor readers: “Six Ways to Trade Positive Momentum.” It will focus on the very same stocks that are part of our inflation-busting portfolio…

But it will also teach you the basics of high-probability options trades, the best stocks to target when capital flows back into the market, and the proper portfolio allocations for this amazing strategy. 

The report will come out in a few weeks…

You’ll only get that report and access to our library of other content if you’re a member of Tactical Wealth Investor by this weekend. 

Join me right here at a special discount price. 

To your wealth,


Garrett Baldwin

Market Momentum is Red

Momentum remains red right now, and we’re currently hedged with the Proshares S&P 500 Short ETF (SPY) for the Tactical Wealth Investor. If we break under 3,900 in the days ahead, a move to 3,800 is very likely. I don’t know how much further it could go in 2023, but I remain bearish into the Fed meeting in two weeks.

Did you miss this week’s Trading Pub Roundtable With Don Yocham? Catch the replay video above…

And be sure to join us each Wednesday at 10 a.m. ET for the Trading Pub Roundtable, where our market and economics experts will discuss the biggest news affecting Wall Street price action — and how to trade it.

In this week’s roundtable, we covered:

• Wednesday’s Federal Reserve rate hike plans and its effect on the market, and the major levels of support and resistance to watch. 
• The biggest earnings standouts and surprises so far. 
• The ongoing sector rotation and how things could play out this year.
• The most overbought sector and index in the market. 
• Why fundamentals and technicals are so out of wack. 
• Major opportunities in the community banking consolidation trend.
• And more!

Be sure and tune in every Wednesday at 10 a.m. ET for the Trading Pub Roundtable With Don Yocham!

Now, about improving your trading results…

The S&P 500 just finished a historic first month of gains. Maybe your results were better than you expected, or maybe your results have you feeling left in the dust.

Professional traders always work to hone their skills, regardless. Here are some ways you can, too…

Know The Way

Have an idea as to where the broader market can go over a designated time frame.

At the beginning of last month, I posted my projection for January…

And here’s how it finished…

Having this framework helped me make money. Understanding news events, trends and cycles are a few keys I used. Applying these components and others in your own way might help you improve your trading success.

Keep in mind that markets can go higher than you think, lower than you think, and sideways for longer than you think.

Just because a market is oversold, overbought or over the hill doesn’t mean it can’t go into overdrive.

Know the Main Drivers

Study the 11 sectors of the S&P 500, and understand which ones are strong and which ones are weak.

The evidence is in! The Information Technology sector took control of January, followed by Consumer Discretionary and Communication Services. Health Care, Consumer Staples, and Utilities all lagged.

Could it be that the economic news is becoming less bad and we’re starting the climb out of the recession? (Yes, I’m on record saying that in the months ahead we’ll get notice that “the U.S. has been in a recession”).

Or maybe the Tech sector and its buddies are just having a dead cat bounce.

Either or both are possible.

According to Bespoke, just 10 stocks in the top 3 sectors contributed 49.49% of the 230 points gained by the S&P 500 in January! I bet you can guess at least five in five seconds… 

But just in case, here they are… 

• Apple Inc. (Nasdaq: AAPL).
• Amazon.com Inc. (Nasdaq: AMZN) 
• Tesla Inc. (Nasdaq: TSLA).
• Nvidia Corp. (Nasdaq: NVDA). 
• Meta Platforms Inc. (Nasdaq: META).
• Alphabet Inc. Class C (Nasdaq: GOOG).
• Alphabet Inc. Class A (Nasdaq: GOOGL).
• Microsoft Corp. (Nasdaq: MSFT). 
• Walt Disney Co. (NYSE: DIS). 
• Visa Inc. (NYSE: V). 

Looking at Health Care, Consumer Staples and Utilities, could they be the winners of February, or will their carnage get worse?

The point is this: Understanding keys about sectors helps traders make cents in stocks, and that’s the next topic.  

Know The Players

Start each day, week or month with a stock watch list.

Eli Lilly and Co. (NYSE: LLY) was one of my favorite stocks for 2022. I’m watching for a pullback to time my next entry because I still like its fundamentals. It might not come in 2023 — after all, a lot of insiders took profits last quarter. But I’m still watching.

Transocean Ltd. (NYSE: RIG), in the Energy sector… now there’s a dog! That’s an ugly 10-year chart if I ever saw one.

Oh by the way, insiders massively bought this stock last year, and check out the volume on the bottom right. 

If you’re serious about trading and improving your results, look at a daily chart to get a different picture. Is there an opportunity? Maybe, maybe not… But someone is buying.

Here’s what I find interesting: Although just 10 mega-cap stocks in just three sectors have taken control since the first of the year, a large number of smaller-cap stocks contributed more than their fair share to the January plunder.

You can see this in the Cumulative AD Line (light blue) overpowering the S&P 500’s dark blue line.

Compare what’s happening now — November 2022 through January 2023 — to what happened July through September 2022. How are they the same, how are they different, how can you use this information to become a better trader?

Think and win!

Celeste Lindman
On the Go Investing

*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

I will admit that I’m largely a market bear. I blame rationality. 

I look at this nation’s underlying economic situation and wonder why investors would start buying stocks at even higher valuations (I’ll also blame the algorithms). If we had any rational attachment between the U.S. economy and the stock market, we’d be far lower. 

But the machines don’t know that housing has been crushed. And the machines don’t care that durable goods spending is ugly. Meanwhile, the Perma bulls are in the business of buying for $1 and selling for $2. 

In the last three weeks, since my momentum indicator turned positive on January 6, the PE ratio of the S&P 500 jumped from 20x to 21.5x.

People are paying more than 5% more for the same earnings. That – on the surface – is madness. 

Perhaps the narrative is changing, and the market is pricing in disinflation and not a recession, but whatever we see right now feels like a delusion. It’s a good thing that I have a strategy to address this manic condition.

A Line in the Sand

The markets follow a trend. 

Since November 2021, it has centered on the Federal Reserve’s need to squash inflation at any cost. And they are doing so at a breakneck pace that is almost getting uncomfortable. 

As I noted, the economy would start to slow down at a face pace. Q4 Core GDP was 0.6%, while combined housing and durable goods spending were off -5.5% (which feels like a shadow recession to me). 

That said, the market trends shifted in October, as the S&P 500 found its bottom. And it produced an interesting result… 

The trend since October was a higher run into the December meeting, followed by a move down to a support level on the S&P 500 around 3,800.

You can see the pink line as the primary top channel support going back to April. That line extends all the way under the market tops of January as well. 

Meanwhile, that bottom blue line support had been the trend in this market. It appeared in December that we’d witness another reversal – before the market found support to start the year. 

As you can see, there’s a wedge pattern that builds pressure from one side and downward pressure on the other. 

And now, as we listen to the Fed’s speech on February 1, the central bank’s decision will decide which way this market turns. 

Will we break out of the yearlong trend as the bears are expecting… or will we crack above the 4,100 lines on the S&P 500 and melt up?

Green for GO

Luckily, I follow Momentum. So, I honestly don’t care. I’m simply aiming to react to the market, buy stocks when conditions are Green (like after January 6), or get out of the way if it goes Red (like December 12).  

Even if I expect this market to implode due to underlying economic weakness (although the government is dropping more liquidity out of the sky), I put that bias aside in positive momentum conditions. 

Meanwhile, I’ve built a long-term portfolio that benefits no matter what comes in the months and years ahead. And next week, I’ll unveil my February pick in a company with a very unusual growth story for the years ahead.

I’ll attend this week’s Live Roundtable with Don Yocham on Wednesday, Feb. 1 at 10am ET, where I’ll talk about the company. Just go here to watch it then. 

To your wealth,

Garrett Baldwin

P.S. Please let me know if you have any feedback, questions about today’s issue or anything else. Just email us at hubfeedback@wealthpress.com.

*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. 

Market Momentum is Green

Momentum is at a peak as markets remain extremely positive and investors continue to squeeze higher into the top of the channel. This is the strongest momentum we’ve seen since August, but a sense of FOMO has sucked the air out of the room. And we’ll see what happens with the trend when the Fed meets next week.

You need to know four things about trading this market. 

They have nothing to do with the Federal Reserve… nothing to do with earnings reports. They have nothing to do with valuations… revenue… or any other metric that Wall Street analysts discuss in mainstream media. 

They’re all-around momentum… and you can track what I’m about to show you – for free – any time you want. 

What are the tools I use to try and beat this market?

Four things… all are momentum indicators.

Momentum is Your Friend

I don’t know why people ignore momentum as a market anomaly. 

It’s one of three anomalies that cannot be arbitraged away… even in an environment where algorithms drive the trading. Buying begets buying. Selling creates selling. 

The only thing that matters is the price, and whether it’s up… or down. 

So, as I’m trading intraday, I’m focused on four things. 

The following chart summarizes the S&P 500 ETF (SPY) and its price movement since Wednesday, January 18, 2023. The market experienced a short-term topping event that fueled a very strong selloff in a 24-hour period.

The selloff started on Wednesday at 10:30 am.

Pay close attention now to the indicators under the chart.

Those are known as Momentum Oscillators. They are – in order – the Relative Strength Index, the Moving Average Convergence Divergence (MACD), the Money Flow Index, and the average directional index (ADX). 

The Relative Strength Index measures stock movement on price. When stocks are overbought, the reading is above 70. When stocks are oversold, the reading is under 30. 

The Money Flow Index is a reading of price and volume. It measures momentum, and stocks are overbought when the indicator is over 80. When it’s oversold, the number is under 30.

The MACD measures stock movements on the exponential moving averages of two time periods. The black line drops under the red trend line when momentum breaks down. When momentum is positive, the black line moves above the red line. 

The ADX is similar. It measures price divergence on a 14-day level and given that algorithms track around these indicators, a negative move tends to correlate with a selloff in the stock. 

I know a lot of people who only trade one of these indicators. 

Don’t do that. You need to combine all of them at once. You need to track them.

Four Deadly Venoms

The film Five Deadly Venoms says: “Toad style is immensely strong, and immune to nearly any weapon. When it’s properly used, it’s almost invincible.”

The Wu-Tang Clan raps about this moments later in “Da Mystery Of Chessboxin’” from Enter The Wu-Tang (36 Chambers).

The point is that combining these indicators can tell you about the likely movement of a stock. This is about market timing. It’s about bringing the probability of a move you can anticipate to its highest level. And it actively tracks capital flowing in and out of the market in real-time. 

As you can see, the market was oversold on Thursday afternoon, prompting a large amount of bidding in this market. And on Monday, we were in overbought conditions. All of the momentum indicators dictate this. 

So, how should you trade this movement? Good question. That’s what we will discuss tomorrow. 

To your wealth,


Garrett Baldwin

P.S. Please let me know if you have any feedback, questions about today’s issue or anything else. Just email us at hubfeedback@wealthpress.com.

*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. 

Market Momentum is Green

Momentum remains positive, and Microsoft’s earnings beat is another positive catalyst for this market. It’s wild to see that the market had such low expectations for the software giant and how dismal numbers can fuel a rally. This is a testament to how much money is pouring into a short squeeze, and bidding on stocks that are still OVERVALUED. And yes, MSFT is an overvalued stock, trading at a ridiculous 8.6 times sales.

This strength can be seen in a few simple ETFs. 

Check out the iShares China Large-Cap ETF (NYSEArca: FXI)…

And the Global X Dax Germany ETF (Nasdaq: DAX)…

Now compare those two with the SPDR S&P 500 ETF Trust: (NYSEArca: SPY)… What do you think? 

Here’s What’s Happening and Why It’s Important

During the second quarter of 2022, world markets began trading higher overnight more often than they traded lower.  

This is important from a historical perspective. Check out this chart from Bespoke and you’ll see that dating back to 1993, most stock market gains occur while the U.S. sleeps.

That’s worth reading again… And it’s worth taking a good look at this chart below.

It implies that on average, the SPY gaps up on a daily basis year after year. 

Now here’s the juicy part…

When that upward cycle breaks down along with the daily cash market like it did in 2002, 2008 and 2022, as shown, and then later restores itself, it points to a world shift. In other words, review the 2003 and 2009 year-end closing prices — they’re all up. 

Opportunity Is Flashing

If you’ve listened to recent editions of Ask The Pros or the WealthPress Live Roundtable, you know many of us see a bottom forming around March.

I agree, and let me add that certain stocks have likely already put in their bottoms for this go around… And they did so in July 2022 — or even January 2022 in the case of energy stocks… 

In fact, the Energy Select Sector SPDR Fund (NYSEArca: XLE) never dipped below its 2022 opening price.

XLE names aside, here’s a nice W-shaped formation for Boeing Co. (NYSE: BA) on a weekly chart, showing off its bottom in June.

How I’m Taking Advantage of It

Let me be clear… No one wins a trophy by calling a true bottom.

We’re just trying to combine knowledge, history and indicators in such a way to increase our odds for successful trading.

Like when I said on Dec. 2 — highlighted in the blue box below — that an opportunity was there in Sally Beauty Holdings Inc. (NYSE: SBH) because of professional accumulation, making the stock more attractive for retail buyers… See what happened after?

There are multiple opportunities that seem to be brewing in 2023 — let’s do this!

Trade to trade well!

Celeste 
On the Go Investing

How and when you start your trading day can be critical to your success.

That’s why I created my own morning routine. I’ve been following it for a while now, and it serves as the foundation for my morning stock market recap videos.

What I love most about my routine is that it helps me see the “big picture” before I even start trading.

And I went over this routine, in detail, in the video I want to share with you today.

In the video, I cover:

• Overnight futures, including which ones I review and what I look for.
• The daily calendar of events, how this news could impact the markets, what to expect and how to prepare for it.
• Market internals, sector analysis and technicals, including which technicals I use for comparisons.
• And much, much more!

Watch the video above, and be sure to check out the rest of my morning routine here!

P.S. Memorial Day Special — My VIP Training Pack!

If you’re like me, I’d be willing to bet that you’re reading this right now because you’re looking for a way to build a better future for yourself and your family.

That’s why, for this weekend only, I’ve put together a special, limited-time offer…

I’ve bundled together my top 3 educational services into one low-price package.

I’ve been trading stocks for decades, and I’ve learned a thing or two along the way…

So I can confidently say this VIP Training Pack — comprised of Plunge Protection 101, the Frontrunners Portfolio Class, and my Intro to Algo course — is a fantastic way to kick your options and trading knowledge up a notch!

Get the Details Here

Welcome to the second episode of Crush the Open! Each Monday ahead of the opening bell, join me, Joy of the Trade’s Jeff Zananiri, and my boy from the New Money Crew, Lance Ippolito!

Be sure and subscribe to our new YouTube channel for Crush the Open!

Each Monday, we’ll get started by having some fun, and then we’ll dive in to plot out the week and discuss any market-moving economic data that’s coming. This week, that’s earnings — we have both Tesla and Netflix coming up in addition to those boring old bank stocks that Lance hates… 

Crush the Open: Don’t Get Crushed by Implied Volatility in Netflix

We had a super bullish day off Thursday morning’s Consumer Price Index number that showed inflation is still running hot, even after all of the interest rate hikes. 

The stock market has been bad, falling hard most of the year, and neither Lance nor I have been picking the bottom — we just trade what’s in front of us. 

Picking bottoms is for talking heads on CNBC, so here’s the thing… You don’t have to pick bottoms if you’re always hedged — and you should be. If you’re long only and just looking for places to hide, you’re likely going to get killed. 

So being hedged at all times is key, like we are in my Link Trades strategy, but let’s talk earnings plays… 

Netflix Inc. (Nasdaq: NFLX) is reporting Tuesday before the opening bell, and it has an expected move of plus or minus 12.6% on earnings. Netflix has had a habit this year of pre-warning everyone that earnings weren’t going to be good.  

We all know this, and that’s why this former $400 stock is now trading around $250 after a BIG surge of more than 8% Monday. But if we look at its last four earnings dates, it’s been surprising to the upside in earnings per share (EPS)…

• Q3 2021 EPS % surprise: 24.61% — stock fell 2.17%.
• Q4 2021 EPS % surprise: 64.60% — stock fell 21.79%.
• Q1 2022 EPS % surprise: 21.47% — stock fell 35.12%.
•  Q2 2022 EPS % surprise: 18.70% — stock rose 7.35%.

So as far as earnings plays, don’t try this at home, kids, because you could get crushed. And here’s why…

Implied volatility (far right column) is high, and even the puts are super expensive… That’s because most investors are long the stock, so they’re purchasing downside protection with puts, making them more expensive…

To me, this stock is not tradeable with that kind of implied volatility — an important lesson for you reading and watching along at home! The problem with high implied volatility like this is if the stock starts going higher, the volatility comes down, eating at your return. 

So let’s say you get this trade right… you won’t make much money. It has to move a ton in the right direction in order for you to come out ahead.

And if you get it wrong, you’ll get taken to the cleaners. So this trade just isn’t worth it from a risk-reward perspective because the risk is so skewed in part by the high implied volatility. 

Check out Crush the Open up top and let’s talk about a few more earnings plays like Target Corp. (NYSE: TGT), and a better way to play Tesla Inc. (Nasdaq: TSLA) earnings via the Nasdaq.   

Because here’s the thing… we’re so oversold right now, if we get a rally in the Nasdaq 100 (QQQ), it’s not going to move 1%… It’s likely to move 5% or more in a matter of days. 

Don’t forget to like and subscribe to our new YouTube channel!

Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com. 

You can also join my free Telegram channel, where I share market insights real time throughout the week, articles, videos and more!

P.S. The Oh-So Rare Energy Supercycle Is Here

We have all the makings of an extraordinary opportunity… Over the past month, we’ve experienced unprecedented events in the energy markets…

• The Russia-Ukraine war continues to escalate.
• OPEC cut production by 2 million barrels a day.
• Strategic Petroleum Reserves hit new 40-year lows.
• The Nord Stream pipeline was just sabotaged.
• Energy prices in Europe are up 700%.

All these events contribute to an “Energy Supercycle” — the first in decades.

Those who play it right could stand a chance to collect a windfall over the coming months. So at 1 p.m. EDT on Tuesday, Oct. 18, I’m issuing my No. 1 Energy Supercycle Play LIVE so you can take advantage of the upcoming opportunity. 

Sign Up Free Here!

There wasn’t much in the way of macro news this week and no real fundamental shift in the economic landscape.

But we did have a historic run of selling in tech stocks in this Nasdaq downtrend… We saw seven straight down days in the Nasdaq, a streak we haven’t seen since 2016. And whenever we see a historic statistical outlier like this, we should expect a proportionate rebound in the other direction. 

But it’s also an indication that this market is in trouble, and the bears are here to stay. We can expect a bear market pop like what we’re getting Friday, but to have a once-every-seven-years sell-off as we did is something we have to pay attention to and respect.

Nasdaq Downtrend: How to Stay Out of the Pain Train’s Path

 In fact, from the open on Aug. 16 through the close on Sept. 6, we fell from $332.06 to $315.93 in the Invesco QQQ Trust Series 1 (Nasdaq: QQQ), which tracks the biggest 100 stocks in the Nasdaq.

The latest Nasdaq downtrend bottomed around the 12,000 level, an area of support we’ve bounced off before, making it a super important number to watch. I expect it’s going to get tested again, likely in the next few weeks. We should go higher from here, maybe back up to 13,000, but we’re still in a major Nasdaq downtrend of lower lows and lower highs…

When that 12,000 level gets tested again, if and when it breaks, we’re going to hit new lows this year. So this is important…

If you’re trying to time into adding some of these tech stocks you think are going to run higher, I would add at the lows of the index and not chase the up moves because that’s when you’re going to get hurt. 

That’s when the pain train rolls through your town — and that’s no fun.

There’s one more thing we need to pay close attention to alongside this Nasdaq downtrend, so check out my short weekly recap video up top and let’s discuss.  

Are there any topics you’d like to see me cover or questions you’d like answered? Send me an email at jeff@joyofthetrade.com! And be sure to stay ahead of the markets by subscribing to our YouTube channel and our Instagram page for all of the latest!

P.S. Are You Prepared for Sept. 20? 

There’s a straightforward way I analyze the market that often leads me to the biggest moves in the investment world before they happen.

And there’s no funny business required with the strategy I’m going to share at 1 p.m. EDT TODAY, Friday, Sept. 9. And it costs nothing to attend!

It’s based on an age-old secret that Vanguard’s John Bogle calls “the most important rule for investors to learn.”

And without understanding this basic principle, trading will only get more challenging.

All you need to do is cut out all the noise in the market, forget about all 4,000 stocks and focus on 11 sectors…

The time to prepare your portfolio is now.

Register for the Event Here