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These Are Not Normal Times on Wall Street. You MUST Hedge to Survive

by | May 23, 2022 | Market Outlook

This market, more than any other in recent memory, behooves you to have hedged positions because no one knows what’s going to happen next. 

We’ve been selling off for weeks… But the market could rip 10% this week — and then collapse 20% the next. But I sleep well at night knowing that I have both bullish and bearish positions, which is the key to surviving this market. 

Don’t get it twisted — what we’re seeing, the mass selling of the past few weeks, it’s not normal. 

Watching a stock like Target Inc. (NYSE: TGT) fall 25% in a day almost never happens. 

That’s something we all need to be aware of because this market is taking no prisoners. 

Defensive stocks? No such thing in this environment. If you’re not trading actively and just sitting in positions, odds are you’re getting crushed. 

These are not normal times, so it’s impossible to be sure what’s coming next, but here’s a little about what I expect to happen…

What we saw last week was the real economy start to collapse and crap the bed. Interest rates are going to have trouble staying on the rise. The Federal Reserve will keep raising its benchmark interest rates because they always do the wrong thing at the wrong time, and I see iShares 20+ Year Treasury Bond (Nasdaq: TLT) rising back into the mid $120s and close to $130…

We just closed the seventh straight down week for the S&P 500, and that hasn’t happened since 2001 — over two decades! Monday is looking pretty strong as I write this, so we may get a nice little reprieve. But as I keep saying, this is such a difficult market to trade, so remember to stay nimble. 

Another thing I keep saying is the biggest up days I’ve ever seen have occurred during bear markets, where you get these face-ripping snapback rallies just when you think things are about to really go over the cliff. 

That’s why it’s important to keep buying those dips and selling those rips — and make sure you’re properly hedged with both short and long positions! 

As always, send any topics you’d like me to cover to jeff@joyofthetrade.com and stay ahead of the markets, especially these choppy ones, by subscribing to our YouTube channel for all the latest. 

P.S. No BS Here… Just an 84% Win Rate Since October

Now more than ever, traders need confidence… And confidence usually comes with a solid trading plan.

That’s why Senior Strategist Roger Scott is going to reveal his “Zip Trades” plan that he’s been following in 2022 to SMASH the market at 1 p.m. EDT on Tuesday, May 24.

It’s the same plan he used to nail an 84.8% win rate on active signals from Oct. 12, 2021, through May 19, 2022… 

And it’s had an average return per position — including winners and losers — of 8.49%, holding each trade an average of 21 days!  

No BS here… No creative accounting… Just a trading plan that’s crushed it so far in 2022! 

What’s the secret? 

One simple indicator he’s willing to bet 99% of traders don’t know about… 

Finding These ‘Zip Trades’ TODAY

WRITTEN BY<br>Jeff Zananiri

Jeff Zananiri

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