We can all agree that the Nasdaq triggered most of the downward selling pressure we’re seeing, right? It’s just full of big, index-swaying names like Apple, Microsoft, Amazon, Meta (Facebook), Intel and Nvidia!
The number of Nasdaq 100 stocks trading above their 50-day moving averages right now is only about 11%.
That number hasn’t been this low since the COVID-19 crash in 2020!
But the point I want to make is that it doesn’t often fall to these levels. And if it does, odds are the markets will go back up.
That’s why I believe we should turn all of our focus to trades we can take when markets are volatile…
The markets traded higher following encouraging data on Tuesday, ahead of Wednesday’s Federal Open Market Committee meeting — and more in Wednesday’s stock market recap.
On Tuesday, we had consumer confidence data and the Redbook, a private report on retail sales. As I’ve said many times before, retail sales make up two-thirds of our economy, so they’re important numbers to pay attention to because of their ability to impact the markets.
Both reports came in better than expected, setting a positive tone for Wednesday’s retail inventories report and Thursday’s gross domestic product data.
Federal Reserve Chair Jerome Powell will also speak following the central bank’s two-day meeting Wednesday afternoon. He’s expected to signal an interest rate hike as early as March, as well as further tightening on monetary policy.
In this stock market recap video, you'll discover how the market is interpreting key Fed data… whether stocks are set to rise or fall… crucial levels for all three major indices… what to expect from the market on Wednesday… plus my top ETF, complete with option price!
I do a ton of sector analysis and use back-tested, proven strategies to beat the market. I use proprietary formulas based on relative strength to track the top 5 strongest stocks… You know, the ones I send you in my new weekly watchlist. But now I want to know which stocks you’d like to see rankings for! All you have to do is reply directly to this email with your tickers!
Toolbox: 1 Day Trading Indicator That Actually Works: The U-Turn Pattern
I’m always looking for simple strategies that we can apply to day trading with short-term price patterns and indicators. One of the easiest to learn — and one of the first ones I teach new traders — is the U-turn trading pattern.
Whether we believe the markets are headed up or down, they’re a great way for people to ground their trading accounts and reduce volatility and negative exposure…
The information in this email is intended for informational purposes only and does not guarantee specific results as there is a high degree of risk involved with trading. Also, our traders are real traders and may have financial interests in the companies discussed. Please see our Terms and Conditions for more information.
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