| |
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
| |
-->
| |
|
I'm Underwater on This Position — but Market Breadth Says Hold Hey, Graham Lindman here… We’re at one of those moments where the market decides whether it wants to hold or fold. Today, I’m focused on a level I’ve been watching closely. The S&P 500 (SPY) is trading just below its 100-day moving average (MA) — the same support area where we’ve bought prior dips. I stepped into this setup on Friday, and yes, I’m down on the position right now. But I’m not stopping out. Not yet. My Stop Loss Level and What Happens If We Break My line in the sand sits between $660 and $650 — that’s the range that matters for this trade. If we start losing that area with real momentum, I’m out. It’s not about being stubborn — it’s about respecting support that’s consistently acted as a pivot during this uptrend. If the 100-day moving average fails, $660 is where I expect buyers to step in. If we slip lower, $650 becomes the final buffer before the trend structure starts to shift. These levels aren’t random — they’re areas where buyers have historically defended and where risk stays defined. Now, just because I’m bullish doesn’t mean we can’t flush lower first. Markets don’t move in straight lines. If we break this range, we could see a quick elevator down before support catches and we bounce. That’s how inflection points tend to play out. But I’ve got my plan, and I follow it. That’s how you stay disciplined when the market tests your conviction. Why Market Breadth Still Looks Healthy What keeps me steady here is the data under the surface. About 55% of stocks are trading above their 50-day MA. That’s comfortably above the zone where markets typically start breaking down. Roughly 60% of stocks are still above their 200-day MA. That’s right where you want to see participation in a healthy trend. We’re also seeing nearly 20% of stocks hitting new 52-week highs. You don’t see that in a market that’s quietly rolling over. That tells me participation is broad — not just concentrated in a handful of large-cap names. So yes, price action around the moving averages has gotten choppy. But the foundation underneath still looks firm. Seasonality Matters Here February tends to be messy. Historically, this month brings quick pullbacks, false breakdowns and short bursts of volatility before a stronger push into spring. What we’re seeing right now lines up with that script. And when a pullback fits seasonal tendencies while internals stay healthy, it argues for patience — not panic. So yes, I’m underwater on this trade. But I’m not concerned yet. Support is defined. Breadth is constructive. And the seasonal backdrop fits the playbook. This is where you stick to the plan — not react emotionally to short-term noise. And if you want to dive even deeper, you can always join the New Money Crew text chain, where we’ll send you a fourth stock that hits the scanner around midday! |
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Want A Shot At A Deposit In Your Account By Tomorrow? There's almost nothing better than waking up to fresh deposits in your account. I know this because traders who were in on Nate’s No. 1 overnight setup have received 8 of those deposits in a row. ![]() That's eight consecutive times where they collected payouts worth 25% on average overnight. Now, we can't make absolute guarantees on the market here... But if all goes as planned, we might keep this streak up in February. We're already lining new trades up for this week, and if you'd like to see how you can join the next overnight opportunity... Disclaimer: We develop tools and strategies to the best of our ability but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. From 10/02/24 to 01/29/26, the average win rate was 80.2% on live published trades. The average return on options trades was 1.95 % over a one-day hold time, with an average winner of 23.88% Glad to have you in the Crew, Nate Tucci Tucci Trades and New Money Crew Follow along and join the conversation for real-time analysis, trade ideas, market insights and more in my official Telegram channel! Important Note: No one from the Prosperity team or Graham Lindman Trading will ever contact you directly on Telegram. |
|
| |
ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. Nate Tucci Trading provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day. Unsubscribe |
Post a Comment
Post a Comment