From Fear To Greed In One Day. Don’t Listen To The News.

Welcome back! There’s so many things to talk about but I’ll try to be as brief as I can. I told you repeatedly that because of the 15 month resistance that we have, we’re going to be in for a rocky ride. We’ve been sitting at these levels for several weeks and until we get above that Dow 27000 level and make it a support level, this market is going to get knocked around. You have some rising support where I told you I wouldn’t be looking for shorts. Now you’re getting wedged in there, which will lead to a lot of volatility. Now we’re seeing these negative divergences. We’re making higher highs in price and lower highs in indications. A little bit of bad news comes out and down the hatch it can go. To wrap up that point, we’re going to continue to see this. This is going to be a phenomenal summer and a stock pickers market. If you’re a day trader or active swing trader, this is going to lead to some phenomenal opportunities. Here is one of the things you’re going to start watching out for now. Here’s what we’re seeing before the open. Traders brace for ‘sharp sell’ off and watch out because we’re due for a sell off at the open. But here’s what happens. We already had the sell-off so traders already had a chance to absorb this news throughout the weekend. That’s an important distinction and piece that you need to understand. The market dropped down and went sideways then leading into the U.S. open, the market gave exactly what people were afraid of – a huge sell-off. The market pushes down at the U.S. open and then shoots up from there. Guess what, this is what you saw at the open meaning you should be thinking about shorting. So if you were long and sold your positions, you gave up profits that you could have had. If you went short at the open, then you went short at exactly the wrong time as well. To add insult to injury, you went from it’s the end of the world as we know it to a stunning comeback on hope that the trade deal is not dead.

Keep this in mind. The mainstream media gives you this information well after-the-fact. If you’re an active trader and investor, you need to be thinking ahead of the curve. People knew about this all night and had the chance to sell. It fooled traders. All the bad news is out. This would have been a different story if this broke during the trading session. Then you could see more precipitous selling. It’s a big deal you need to understand.

With that being said, this offers up a lot of opportunities for stock traders and options traders because you get that gap down at the U.S. open. If you look at the Wealth Strength Index at Wealth365.com, you’ll notice Charter barely went down at the open and then held very strongly. If you take a weak stock, they won’t necessarily do so well on the backend of something like that. If you can find strong stocks, that can be great for fresh re-entry opportunities. Make sure you’re paying attention to which ones are strong or weak giving the market.

So, the point with all of this being is watch out because what you’re reading in the news, can be hazardous to your financial health because you’re one of the last to know. Remember, we still have nice rising supports on key areas. This market still is at massive resistance up above as I showed you earlier in the video but we still have rising supports underneath us. We have these whipsaws back and forth. It’s going to give us phenomenal day trades and a stock pickers market. Stay tuned for these updates for these strategies.

Have a great night!

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