We’re barely a full week into the new year and woooof... It’s been an insane “don’t try this at home, kids” kind of market that has many investors panicking.
If you’re a new trader who hasn’t had experience with huge amounts of volatility — and crazy price action happening daily — then you’re going to be completely lost in 2022.
So I decided to film this video to simplify and clear things up for people who are new to trading… And I have a stock market game plan for 2022 that’ll help carry us to the end of the first quarter (Q1) relatively unscathed.
Guys, I have a strong feeling this is going to be an uncharacteristically tough Q1 in the markets, so I want us to get ahead of this wild ride before it’s too late…
The No.1 Stock Market Game Plan for Q1 2022
One of the first things traders should look at in order to get a good idea of what’s to come in Q1 is Friday’s jobs report number… but it’s sending out a mixed message.
We were expecting 450,000 new jobs. Instead, we got about 199,000 — which is a significant miss.
Why does this matter so much?
The Federal Reserve has been using the employment situation to give itself an excuse not to raise interest rates and let the economy run hot. So this weak jobs number will be the perfect excuse for the Fed to keep interest rates at 0%.
If you thought inflation was bad in 2021, then you’re in for a nasty surprise in 2022…
However, the jobs report also threw us a curveball no one was expecting: a 3.9% unemployment rate.
This number is super low, considered full employment by even the most dovish economists. And underneath the hood of this number, there’s about 600,000 Americans that didn’t file for unemployment and instead created their own jobs.
That tells me this is an economy that’s dropping out of the workforce and making money in more nontraditional ways.
Again, what does all of this mean — especially when it comes to our Q1 2022 stock market game plan?
It means the chart I’m about to show you will be the key driving force to everything that will happen in Q1…
In fact, it’s already made a 25-point move to the upside since the start of January… And the market is coming undone as a result.
Watch the video below to learn more about my Q1 2022 stock market game plan.
And as always, send any trading questions to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel.
