Somethings Gotta Give

“Are we in a bear market?”

A good question. But what if I told you that the #SPY ETF (S&P 500) is close to 52-week highs, and closed higher than the same day one year ago?

Almost shocking when you consider the daily headlines of doom and gloom.

Many people are confusing the lack of a bullish rally in the major indices with going down.

The market is not going down. But it’s not going up either.

The big picture is stuck.

The conflicting reality of inflation, higher interest rates and lower corporate margins clashing with a with a stock market that refuses to crash has a lot of smart people scratching their heads.

So what does that mean?

Well for starters, the market is always right. Let’s be super clear about that. Forcing the market to do what you believe should happen is the most expensive belief a speculator can have.

If it doesn’t make sense, stay in cash. It’s the right play if you can’t find trades with an edge.

What if the market breaks out? What if all of the talking heads are wrong and a new bull market emerges?

Which sectors, industry groups and stocks are you stalking for the next leg higher? 

What areas of the market are showing relative strength as the market meander?

Next. Be prepared. Somethings gotta give. 

Learn from recent history. You need to start asking yourself questions.

“What if the back of 2023 is bearish?” What’s your plan?

And more to the point. What does that look like? Will you cut back, hedge, dollar cost average (not my favorite)? Take the capital and invest in other assets?

Next. Improve your skills. 

That’s right, trading is a skill. Once you learn it, you will always have it. Trading is a glorious asset to earn, protect and grow.

While the market remains neutral, we’ve rotated in and out of sectors and produced daily and weekly with predictability.

It’s not luck. We’re prepared and we have a system.

Something is going to give. The dam will burst. Now is the time to get ready.

“I’d rather be prepared for an opportunity that never comes, than not prepared when one does.”

NEW: AI COACHING! // Get ChatSTP Today

Related Articles

Stocks & Options For Breakfast | Bull Market Breakouts

Stocks  Long stock ideas Financials (BAC, GS) with potential for pullbacks but overall bullish  Healthcare (BHVN, JNJ) showing relative strength  Technology (DOCS) early uptrend Short stock ideas Basic materials (AEM, STLD) clearly bearish sector Energy (XOM, CVX) at support levels but potential to go lower  Risk management Position sizing critical in volatile markets  Use stop…

Podcast: Stocks & Options 3-23-24

Trade Stocks With Pete  |  Trade Options With John Summary Navigating the late-stage market cycle: How to stay cautiously bullish while avoiding potential pitfalls   Mastering the art of chart-reading: Discover why respecting technicals is crucial for trading success, no matter your opinions   Traders vs. Investors: Uncover the surprising differences in how they approach…

Options Trading Q&A

0:00 – 6:36 Identifying the Market6:36 – 8:10 Great Idea, Not Expressed Right8:11 – 10:37 Implied Volatility10:39 – 11:38 Credit side11:39 – 15:53 Call Options Off the Bottom15:54 – 21:40 Risk to Reward Ratio (Aarons Question)21:42 – 25:40 Diagonal vs Vertical Spreads25:41 – 34:36 Difference of Equity Traders and Options Trader34:37 – 37:15 Biggest Mistakes with Fast Moving…

Responses

Your email address will not be published. Required fields are marked *