Markets Descend Into the Eye of the Volatility Storm
China just punched back, and for stocks it was a body blow. We’re closing out an absolutely epic trading day - trading week, in fact. In the chart I’m going to show you in a second, you can see U.S. stocks plummeting right into the storm. I’m talking about the second straight day of powerful,…
There Plenty of Profit Opportunities Today - And I’ve Got Some
We knew the markets probably weren’t going to respond well to the tariffs, but the breadth and depth of them provoked a virtual instant selloff in aftermarket trading yesterday. To give you an idea of the ferocity there, NQ futures were halted at one point Wednesday evening. That spilled over into today’s regular trading; stocks…
Get Ready for the Whiplash - It’s Coming
Whether you’ve been psyched for “Liberation Day”... or completely freaked out by the stiff tariffs that just came down… you need to hear what I’m going to tell you tonight. We’ve been dealing with a range bound market that’s seen some wild, but increasingly weak, reversal rallies over the past few sessions. Sure enough we…
The Bulls Have Some Hurdles to Clear - Here’s What to Do
Stocks got squeezed out of the low yesterday, but there are still some formidable obstacles bulls need to get around to rekindle the bull market. Market breadth is starting to improve, but without the Magnificent Seven participating, bullish efforts won’t amount to much. We took a swing at Tesla (TSLA) a few weeks ago and…
Gold Is Taking the Shine Off the S&P 500
The S&P 500 just experienced a 2% rally after a risk-off day, with the VIX nearly hitting 25 before reversing. However, gold’s performance, with the SPDR Gold Trust (GLD) up 1.4%, outshone most S&P sectors, signaling underlying market unease. Gold’s outperformance suggests a shift away from inflationary assets, as demand for physical gold rises amid…
Get Ready: Another Wave of Risk Is Imminent
Volatility is in backwardation… That’s not a horoscope or a fortune cookie, it’s real and it’s happening right now. We’re staring down the barrel of an intense, though possibly short, wave of volatility here. But this is a great market for trading. Earlier this week, while the markets were trading more or less flat,…
Where the Business Cycle Says We Should Invest Right Now
In any Economics 101 classroom, they’ll tell you a standard business cycle in the US economy takes around four years to play out, from weakness to strength to weakness. Right now, although hard data and even anecdotal evidence (based on my quick TheoChat room survey yesterday) are mixed, with strength and growth in some places…
Risk Comes Raging Back - Here’s What to Do About It
The S&P 500 is down around 1.3% and volatility is up - nearly 9% for the day, in fact. THE CHOP is back, baby! Big-time. And we’re perfectly positioned for it, too. The sell-side activity we’ve seen today came from bigger fish out there, which is one reason why the Nasdaq isn’t doing anywhere near…
Stocks Face a Big Test Here - Here’s What to Do
“Can the bulls pull it off?” That’s the question on 162 million minds right now. Tonight we’ll answer it. Stocks started the week off on a strong note, but, as of about 1 PM today, they're in “catching their breath” mode. Nevertheless it’s way too early to say definitively that the tide has turned back…
How “Ghost Prints” and “Squeezequakes” Are Driving This Market Higher
Big market moves often come with big stories, and last week was no exception. It all started on Thursday when some massive “Ghost Print” call option trades hit the Magnificent Seven stocks - Apple (AAPL), Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL), and Meta (META). As I said in Friday afternoon’s First Mover Market Advantage, these…