Powerful Stock Market History Repeats Itself Again Today

Welcome back! What an exciting day! I’m sure by the title: Powerful Stock Market History Repeats Itself Again Today, you probably think I’m referring to the new highs we set for the Dow – that is not what I’m referring to actually. What I’m referring to is the lesson I gave you last night. I shared this concept of having a market strongly pushing up but the other market that’s key to us is not pushing up. What happened today is repeatable and happened again and again. It’s the beauty of what I do in the live trading room. We had a situation where I was getting people to focus on the quote board. What I was showing people that the S&P was at .30%. We were at .5% on the Russell, the Dow and the NASDAQ. The NASDAQ started to surge. I said that’s great but watch out. This caused people to get really excited as the percent started jumping up and they wanted to jump in long. I said no. We have a negative divergence and the other markets started to fall back. The whole market rolled back accordingly as you can see here in a big way. Once again, avoiding those completely unnecessary losses that so many retail traders take. They see the markets going up but aren’t focused on the other markets that tie along with it. That’s not a good trade from my perspective. It could result in a good short, which ultimately became a three musketeer short.

The moral of the story is I talked about it in last night’s video and it happened again today. It happens often so I like to remind you of it. You can see it in action again today. You can see how quickly people get their heads handed to them. If there is something as the Holy Grail is that I look at the markets the same way you do but I flip it and reverse it. Instead of looking for a fresh buy, I look at it with a skeptical shade. We’re making lower highs with the indicators. How do I jump into this long? Instead, how do I jump into this short or avoid the trade all together.

I wanted to bring that home two nights in a row. IT will help all of you who are struggling. All of these concepts are very useable especially the positive and negative divergence in our swing trade.

This morning was focused on gold and bonds so we’ll see what we can dig up tomorrow in the live trading room or in tomorrow night’s videos. Have a great night!

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