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After This Holiday Rally, You Better Know When To Walk Away

This week’s investor insight will make you think twice about the current stock and bond rally as we head into the end of the year.

We get a lot of questions about if the stock market has bottomed or if it is headed lower and how they can take advantage of the next Major market move. Over the next 6 to 12 months, I expect the market to have violent price swings that will either make or break your financial future. So let me show a handful of charts and show what I expect to unfold using a single asset revesting method.

Let’s dive in.

We’re told that “quitters never win.” But is it always wise to stick with something when it no longer serves us or, worse, continues to harm us?

Many years ago, when Texas hold’em poker was big and online gambling was allowed in Canada, I used to run a poker league and build custom poker tables for people across the United States and Canada. I love poker, and I still play it to this very day, but the game does require skill, a proper mindset, and self-discipline. Without all three of these things, poker is pure gambling. It’s the same when it comes to active trading or investing if you lack the skills, mindset, and self-discipline.

Retired professional poker player Annie Duke, who is also a best-selling author, and decision strategist who advises seed-stage Startups, says that learning when to quit is a critical skill, especially for investors.

Annie states, “Quitting is a good thing when applied at the right time.”

If you’ve been following me for any time, then you know I follow a detailed trading strategy with position and risk management rules. As a result, you won’t find me taking random trades or trading based on emotions. Instead, you’ll find me patiently waiting on the sidelines for a high-probability trade signal to reinvest my capital.

I trade differently. I don’t diversify. I don’t buy-and-hope, and I don’t have any positions at certain times.

What I do is reinvest in assets that are rising in value. And when a particular asset stops moving higher, I give up on the position and exit it immediately. Because I use technical analysis to follow price action, we can quickly and easily determine if an asset is rising or falling. Therefore, I can step aside and let the asset fall and look for a new opportunity that is rising, or hold the falling position and ride it lower for who knows how long…

Unfortunately, most traders and investors do not understand how to read the markets, or they don’t have control of their money. They are at the mercy of what the market does or the skills of whoever controls their capital.

Let me share some of my market insight
and help guide you

On October 21st, I stated that retirement accounts should bottom and rally into the end of the year. Bonds were hitting 11-year lows. In short, anyone holding 20+ year treasury bonds just had more than ten years of investment growth wiped out.

Bonds, the highly touted safe, low-risk asset, fell over 47% from the 2020 high. It caused similar losses to the average investor portfolio comparable to the 2008 financial crisis.

It was the worst selloff ever for treasury bonds that I can see on my charting platform. The real kicker is that the selloff in both stocks and bonds could have been avoided with just a little education and management. Subscribers and I happened to ride the COVID bond rally higher by 19%, exited the position, and moved to cash the day bond prices topped. It was partly luck to exit at the peak, but we would have exited the following trading session if we didn’t lock in profits because we managed our positions and risk. As the price reversed direction, we jumped shipped to one of my favorite positions, which almost no one thinks about or uses – CASH.

2022 has been a painful year for investors, and people are telling me they are scared to look at their investment statements. It now looks like bonds and stocks have started a seasonal rally that could help lift your portfolio as we head into the end of the year, but once it ends, look out!

Bonds and Stock Seasonality Price Movement

Daily Chart of 60/40 Portfolio

You should have seen your account rally 6% or more since Oct 21st, and I think it will continue higher once the market digests the recent move up. While this may excite you, be aware that after this rally, we could see another 20-47% decline in stocks and bonds in 2023. This year-end bounce is nothing more than an opportunity to get out of the antiquated Buy-and-Hope strategy that does not work during a volatile and weakening economic environment.

The next few charts, which are big heavyweight stocks that drive the market higher and pull it lower, should help you see what I see.

AAPL Weekly Chart and Potential Breakdown

Apple is a heavyweight stock. When it moves, it moves the stock market. Currently, AAPL shares are in what I call a STAGE 3 Distribution phase, and if support is broken, then look out below!

TSLA Weekly Chart and Potential Breakdown

Tesla shares are another heavyweight, and its weekly chart paints a bleak future for holders.

META (Facebook) Weekly Chart Breakdown Leads The Way Down

Facebook, or what is now called META, is a heavyweight stock that has already broken down from its STAGE 3 Distribution phase. As you can see, when these mega stocks break down and unwind, individual investors who have their money managed by so-called professionals who don’t know how to manage risk suffer the most.

The drop in META shares has held the tech, social, and even the S&P 500, and Nasdaq from rallying freely to the upside in the past month. When/if AAPL, TSLA, and other heavyweights break down, expect panic on Wall Street.

My general rule of thumb is if someone tells you to diversify into a bunch of different assets, stocks, commodities, bonds, crypto, etc… then they don’t know what they are doing. They are a buy-and-hold believer and willing to let their own money or that of their clients experience the severe price swings the market dishes out.

Billionaire investor warren Buffet says, “Diversification makes very little sense for those who know what they are doing.”

Multimillionaire investor Jim Rogers said, “Diversification is something that stockbrokers came up with to protect themselves, so they wouldn’t get sued for making bad investment choices for clients, and that you can go broke diversifying.”

The Four Stages Of Asset Prices

If you think the 2022 pullback has been distressing, you better buckle up because the bear market has not even technically started yet, from my standard. Instead, in early 2023 we should enter a STAGE 4 Decline. This is when people’s financial future and retirement lifestyles are created or broken, depending on how it’s managed.

Don’t get me wrong, I’m not saying the market will fall in 2023. I’m letting you know it’s very possible, and you best have a plan in place. On the other hand, if the markets have some miraculous recovery and start a new bull market, well, you better have a plan for that also. Either way, you need a plan, and if you are a technical trader who follows price and manages positions, it doesn’t matter what the market does; we are set either way.

If you want to learn more about who you are at a deeper level and what you specifically need to make your personality work best with your trading and investing be sure you read this and do the mini quiz on your trading personality type.

S&P 500 Bear Market Expectations 2023

The S&P 500 chart shows the extreme low that we could possibly reach if the economy and stock market fully unwind. Bonds would sell off as well until the Fed decides to step in and starts lowering the rates to try and save investors, but there will be a delay, and bonds will likely fall sharply before we see that take effect.

CONCLUDING THOUGHTS:

In short, without going off too much on a rant, you can read the three lies we are told by financial professionals that really IRK me. Because of these lies, individual investors must work harder, work longer and often experience painful financial outcomes.

What you may not know is that what you went through in 2008, the 2020 crash, and this year’s correction could have been completely avoided. If you followed a NO BS investing method that tracks price using technical analysis, is simple to follow, and is uber-conservative, then your account would be sitting at a new all-time high watermark as of this week.

The financial industry tells us to do all the wrong things, and almost everyone falls for the BS; it’s so frustrating to watch!

LIE #1: Diversify, Diversify, Diversify

LIE #2: Bonds Are A Safe Investment And Should Represent A Large Portion Of An Investors Portfolio

LIE #3: Speak With An investment Broker Or Advisor Before Placing Any Trade To Be Sure It Is Suitable For Your Personal Circumstances.

It’s total baloney because almost everyone gets the same generic advice, buy-and-hold stocks and bonds, don’t give up on it, ride out the rollercoaster, and you will be fine, trust me…

Who came up with that strategy? Sure, my 10-year-old son could buy some stocks and bonds once, let it ride for 20-30 years, and be ok. He has time and not that much money, but the big question is at what age does the stock and bond, buy-and-hope strategy become a harmful and risky investment strategy? 50-ish years of age is my thinking.

Knowing bear markets can take 3-12 years to recover from, someone who is 50+, planning to retire soon, or is already retired, doesn’t have 10+ years to keep working and saving to avoid withdrawing funds from their retirement account. Also, the fact that they have the most wealth ever in their lifetime, they should be concerned about holding through future bear markets.

Don’t be fooled. Just because everyone else has been brainwashed to buy-and-hold, aka buy-and-hope, and suffers stock market selloffs does not mean you should…

It’s like the average investor has Stockholm syndrome. They have all been beaten up by the markets over and over again. They think that’s how it should be. And in some cases are paying someone to take their money, plop it into the market, and do nothing with it for 10 – 40 years. They pay a % of their life savings each year to someone who has no risk and does not need to do too much of anything, while the investor suffers massive multi-year drawdowns, experiences high levels of stress, and sometimes big losses.

The typical investing experience most people endure is NOT how it should be. There is a better way, and I can show you.

My passion is trading and investing, having been at it for over 25 years. My goal is to help as many investors as possible to preserve their capital during difficult times and also be able to grow their wealth by trading only the most liquid ETFs. My asset revesting signals allow individuals to only hold assets that are rising in value.

Asset Revesting strategy for Wealth Manager involved moving assets between options based on market signals and that assets would be more protected against devaluation with market downturns.

Chris Vermeulen
www.TheTechnicalTraders.com

Disclaimer: This email and any information contained herein should not be considered investment advice. Technical Traders Ltd. and its staff are not registered investment advisors. Under no circumstances should any content from websites, articles, videos, seminars, books or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any security or commodity contract. Our advice is not tailored to the needs of any subscriber so talk with your investment advisor before making trading decisions. Invest at your own risk. I may or may not have positions in any security mentioned at any time and maybe buy sell or hold said security at any time.

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How To Build Wealth Using ETFs Without Knowing How to Trade

Let’s kickstart things and conduct a quick thought experiment, shall we?

Who is wealthier?

Someone who works eighty hours per week and earns $450,000 per year,

or…

Someone who works 20 hours per week and earns $250,000 per year?

Insert the Jeopardy theme song here…!

There is no right or wrong answer because multiple strong cases can be made for both.

If we break things down into absolute terms, the person earning $450,000 has more money. However, the person making $250,000 is more productive per hour and has a lot more available time once the workday is done.

Your choice speaks volumes about who you are as a person, your mindset, and the life stage you are currently experiencing. I encourage you to ponder WHY you chose the answer you did.

For example…

You may be in a mid-life phase, the prime of your income-earning days. You are working hard every day to build your passion business as big as you can. You want to build wealth while the going’s good and while you have the energy to do so. One day you plan to slow down.

Maybe you are a more balanced lifestyle person and would instead choose to make less money, work fewer hours, and enjoy hobbies or adventures outside of work with family, friends, etc. To you, wealth is more about living, not working.

Again, there is no right or wrong answer. We are all in the position you are in and must do what works best for our own situation and investment personality.

Ok, let’s try another thought experiment…

This time, we’ll assume that your investment dividends and interest income pay your lifestyle expenses. Therefore, your income is separated from your time because your bills and activities will get paid even if you do zero work.

Does that seem like a wealthy person and lifestyle to you?

If so, then you likely have an intuitive understanding that wealth is a by-product of assets operating independently of your time. Take a moment to think about that…

Wealth is a by-product of assets operating
independently of your time.

Does this thought provide you the idea of freedom to do the things that excite you, make the hairs stand up on the back of your neck, and allow you to spend more time with those you love?!

It certainly does for me.

With some of my spare time, I give a helping hand to those who are not as fortunate through local charities and fundraisers. I started the 100MenWhoCare group in our town, where we focus on raising $10,000 in 60 minutes with 100 men who donate $100 each.

My daughter Mirabelle and I are part of the BrainFreeze Challenge, where our team is taking the plunge into ice-cold Canadian waters to support Mental Health for Youth programs. Did you know that suicide is the #1 cause of death for young people? I didn’t and was both shocked and saddened by that statistic. Shameless plug alert – I would love it if you helped us support the cause!

I also am an avid inventor who designed and created the world’s first flying jet surfboard – VeFoil!

How do I have time for all of this?

Because my brain thinks and works differently than almost every other trader and investor, maybe even person, I know.

Start making your capital work for you,
and then you can help others.

My life’s work is helping individual investors and financial advisors become wealthier. I help them make more money with less effort and less risk by only holding assets rising in value. When that particular asset trend ends, we reinvest our capital into a different asset that has started a new uptrend.

This asset revesting strategy allows investors to sidestep and even profit during falling stock and bond prices without taking any additional risks. In fact, it can reduce portfolio risk and volatility if you are committed to the revesting process.

What I do is very different from the old Buy-And-Hope investment strategy of the past. You know, the one we all grew up with. The strategy pounded into us as soon as we learned what money was and trumpeted by virtually all investment advice you could find. Only now, instead of the ‘big-money’ we were all but promised, we get to watch as most portfolios take an ugly swan dive and will likely end with a painful bellyflop.

No. Just NO. It does not need to be this way and certainly isn’t in my world.

What I do is the complete opposite. No Diversification, No Buy-and-Hold, No Positions at times, plus I manage positions to control risk and profits. These are things you likely don’t do, and a way of investing you won’t find any advisor doing unless they happen to be one of my clients.

I do this by helping enlightened financial advisors and individual investors embrace the idea that by using technical analysis we are able to follow price trends very closely to know when one trend has ended and a new one has started. I only invest in the most liquid assets (stock indexes, bonds, US Dollar index). I also embrace the use of systems that operate without our time and energy, which continue to work for us whether we are sleeping, playing, or on vacation.

To bring this full circle, this happens the same way that dividends will arrive and be deposited into your brokerage account no matter what you may be doing elsewhere.

Ways income can be automatically generated
with this new way of investing

They are:

  • Dividend payments from index ETFs
  • Bond ETF interest payments
  • Share lending interest income
  • Portfolio growth through revesting trades (we locked in a 5% gain yesterday in SPY)

Now, if you don’t know anything about trading or investing, that’s fine.

And if you value your time and don’t want to think about managing your investments, that’s not a problem either.

I’m all about being as efficient as possible and not having to do anything that can be done for me.

This leads to having an ETF trading strategy executed automatically in your brokerage account. I believe human error is the reason why most traders fail to make consistent money. People’s emotions, lack of self-discipline, missing trades, incorrect trade order execution, etc., all lead to investing underperformance.

For these reasons, I offer autotrading of my primary strategy at no cost. I know it’s the best option for individuals to build wealth on autopilot with less risk and less stress. And I am all for a world where we can spend more time and energy with the people, events, passions, etc., that cause our cup to runneth over.

The bottom line…

Using a multi asset revesting strategy to make your capital work for you while you are boating, golfing, working, sleeping, or traveling is like having another profitable business making you money…only without the headaches.

I explain exactly how this process works below if you want to learn more.

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If you have any questions, I’m always here to answer your questions!

Chris Vermeulen
Chief Investment Officer
www.TheTechnicalTraders.com

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Hi Ho Silver!  Different Ways To Get In On The Action

Precious metal prices – gold, silver – and related miners have been bearish for quite some time now.  It looks like that is starting to change.

When I look at the charts for gold and silver, I see similar periods of consolidation with multiple tests of support.  But even more interesting is the recent upturn in price and moving averages with some new higher highs.  That makes me interested but tentatively bullish on the metals.

There are many ways to participate in this sector.  There is, of course, physical metal – bullion or numismatics.  I’ve always liked the idea of having some physical metal that I can put my hands on.  And there are many secure storage options as well.

The metals sector has several popular ETFs – GLD, GDX, GDXJ, SLV, SILJ, etc.  One approach would be to simply buy shares in whichever one is the Best Asset Now (BAN) one or more of these ETFs.  That’s as easy as buying shares of stock.  But, like owning stock, gains may be slow to come as we participate in the price action tick for tick.

Gold Daily Chart

Silver Daily Chart

As an options trader, I like to give myself a little room to be wrong on price and reduce my cost basis by selling option premiums.  There are two basic ways to do that.  I can buy shares and sell “covered calls” against those shares.  Or I can sell puts, essentially committing to buy shares at the strike price in return for receiving an option premium.  The profit and loss graph for selling a put is the same as for selling a covered call.

I prefer the “selling puts” strategy for its simplicity and relative ease of rolling out in time and up in strike price when there is an uptrend in the underlying shares.   I don’t own any shares with this strategy.  I’m just committing to buy shares at a certain price for a certain time period and getting paid to do that.  So, it’s important to only sell puts for the number of shares I’m willing to own at the strike price sold.

Selling Puts For Consistent Income

While the option selling strategies presented here can work on any stock or ETF that has options, they work best with relatively lower-priced products that are under about $25.  A commodity ETF such as SLV – currently trading around $20 a share — is a good candidate.  SILJ at around $10.50 a share also looks good.

If we sell puts, we may have shares “put” to us at some point and will then own the shares at the strike price we sold minus the premiums collected.  Having shares put to us at a reduced-cost basis is part of the plan.  When we sell an out-of-the-money (OTM) put, we’re methodically nudging the statistics in our favor by “buying low” when there is a pull-back in the underlying.  We can alternately think of selling a put as a standing limit order to buy shares with the limit price equal to the strike price we sold.

If we have shares “put” to us, we can then sell calls against the shares we now own.  And the cost basis of the shares we purchased will have been reduced by the cumulative option premium collected by selling puts.

Trade Management

Writing puts and covered calls are relatively low-maintenance strategies that don’t have to be watched continuously.  Once we write options, we do have to be patient and let time decay in the options we sold work for us.

If the options we sold expire worthless, we can sell new options for some future expiration cycle and collect more premium.

If our sold options are in-the-money (ITM) as expiration approaches, we can defer an assignment by rolling out for additional credit.   In that case, we would buy back the option close to expiration and sell another one further out in time.  We can usually do this for an additional credit because we are selling more time value.

Want your investing done for you on autopilot? Get autotraded asset revesting signals executed in your brokerage account.

Upside and Downside Risks

As with any strategy, it’s important to ask and understand “What could possibly go wrong?” before getting involved.   Selling puts and writing covered calls are neutral to bullish strategies.   There can be sustained down trends, price shocks, and changes in volatility that can affect strategy performance.

There’s always a tradeoff when selling options.  In exchange for collecting option premium, profit is limited to the amount of premium collected plus any appreciation in shares up to the strike price in the case of covered calls.  We may not have a great opportunity to sell option premium in every possible cycle.

Keeping probability in our favor and letting time decay work for us are benefits of selling a put or covered call.   As option sellers, we don’t need large up moves to make a profit.   We have the statistical odds in our favor and option time decay working for us.  The underlying share price can go up, sideways, or even down a bit, and we can still profit.

What To Learn More About Options Trading?

Every day on Options Trading Signals, we do defined risk trades that protect us from black swan events 24/7. Many may think that is what stop losses are for. Well, remember the markets are only open about 1/3 of the hours in a day. Therefore, a stop loss only protects you for 1/3 of each day. Stocks can gap up or down. With options, you are always protected because we do defined risk in a spread. We cover with multiple legs, which are always on once you own.

If you are new to trading or have been trading stock but are interested in options, you can find more information at The Technical Traders – Options Trading Signals Service. Brian, who has been trading options for almost 20 years, sends out real live trade alerts on actual trades, such as TSLA and NVDA, with real money. If ready to subscribe, click here:  TheTechnicalTraders.com.

Enjoy your day!

Brian Benson
Co-Author: Chris Vermeulen
Chief Options Strategist
TheTechnicalTraders.com

Disclaimer: This email and any information contained herein should not be considered investment advice. Technical Traders Ltd. and its staff are not registered investment advisors. Under no circumstances should any content from websites, articles, videos, seminars, books or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any security or commodity contract. Our advice is not tailored to the needs of any subscriber so talk with your investment advisor before making trading decisions. Invest at your own risk. I may or may not have positions in any security mentioned at any time and maybe buy sell or hold said security at any time.

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BrainFreeze Challenge – Polar Plunge!

TheTechnicalTraders team, plus hundreds of others, are leading the charge in awareness and fundraising to help reduce youth suicide and would love your support. The BrainFreeze challenge we will be filming is Nov 26th so time is ticking for us to reach our goal to help as many kids as possible.


Photo: Chris, Val, Elizabeth, Ashley

I’ve been trying to find a new way to help others in need of support for a long time, and until a couple of days ago, I didn’t know what to do, but I know now!!!

I’m Freezin’ for a Reason!
I have decided to take the plunge for youth mental health in the BrainFreeze Challenge on November 26th in the icy great-lakes of Canada – Eh!

I believe in helping others whenever we can, and the cause of supporting Youth Mental Health is to make sure that one day soon, suicide will no longer be the leading cause of death for young people.

Now, if you know anything about me, you’ll know that when I feel that zing of energy or an idea, I go full tilt….and boy, did I feel that zing and get inspired from the dip!

Because I am a huge fan of extreme weather hot tubbing, and I have a rather large 10-person inground spa at my house, I decided to create 
TheTechnicalTraders Hot Tub Team.

Check Out TheTechnicalTraders Team Page:
https://jack.akaraisin.com/ui/brainfreeze2022/t/ttt

On the weekend, I was inspired by two friends (Val and Elizabeth) to do the Brainfreeze challenge after Elizabeth challenged me to a polar dip at my house to see who could stay fully submersed up to our shoulders in the lake. Elizabeth is the queen of cold water, but I took her up on the bet…

Ten minutes later, after floating in the cold lake, she asked if we could both get out together, so we did, and it was a tie. But I technically did wait a split second to let her stand first before I did… but I’m not competitive 🙂

Anyways, Brainfreeze is a yearly fundraising event created by the teams at Jack.org and Surf The Greats. Its mission is to raise money for youth mental health programs, to inspire youth to become advocates for change, and to support youth in their quest to be authentic and brave in their journey to adulthood.

Anyways, the team and I would love for you to join us in the experience. Our goal is to raise $10,000 or more. Donors will receive a video of us all taking the plunge. The team and I are starting to raise funds, and donations on our personal pages all go towards TheTechnicalTraders Team Total. Keep in mind this is Canadian Currency, so $1 CAD is only 73 cents USD.

Water You Waiting For?

Supporting Youth Mental Health is to make sure that one day soon, suicide will no longer be the leading cause of death for young people. Help The Technical Traders Team Make A Difference – Click Here

Chris Vermeulen
Chief Investment Officer
www.TheTechnicalTraders.com

P.S. I know some of you have donated in the past to support the “100 Men Who Care” charity fundraiser I started with a few other guys. We recently supported a homeless shelter for kids with over $8000 in our one-hour gathering and group zoom event. A big thank you for your support. I know that many of you have your own charities/fundraisers/etc you donate to that are important to you. Let’s just keep helping the world one cause at a time, and together we will make a difference.

Disclaimer: This email and any information contained herein should not be considered investment advice. Technical Traders Ltd. and its staff are not registered, investment advisors. Under no circumstances should any content from websites, articles, videos, seminars, books or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any security or commodity contract. Our advice is not tailored to the needs of any subscriber so talk with your investment advisor before making trading decisions. Invest at your own risk. I may or may not have positions in any security mentioned at any time and maybe buy, sell or hold said security at any time.

The Worst Case Scenario for Retired or Nearly Retired Investors Who Are 55+

I just did some research and wrote about it. I should be clear that you may find this article a little unsettling if you are nearing retirement or have already retired. On the other hand, it’s an eye-opener because the financial markets and different asset prices paint an interesting picture.

But, I believe being armed with the proper information like retirement asset revesting knowledge, leads to better outcomes, so I’m sharing this possible scenario that could unfold in the next 3-10 months and last for many years and directly affect our lifestyle.

If you don’t take proper action, you could be exposed to and experience something called the sequence of returns risk, which I will explain in great detail in my soon-to-publish white paper, so be sure to join the free newsletter. So, let’s jump into things!

There is a concept that the US Fed may be pushed into raising rates above nominal inflation rates to stall inflationary trends. Historically, the US Federal Reserve had raised rates aggressively to near or above annual inflation rates before the US economy moved away from inflation trends.

The Potential Scenario As Told By The Charts and History

Suppose US Inflation trends continue to stay elevated throughout the end of 2022 and into early 2023. In that case, the US Fed may continue to raise Fed Funds Rates (FFR) to unimaginable levels more quickly than many traders/investors consider possible. Could you imagine an FFR rate above 6.5%? How about 8.5%?

What would that do to the Mortgage/Housing market? How would consumers react to credit card interest rates above 24% and mortgages above 10%? Do you think this could happen before inflation trends break downward?

The reality is that the markets and future have a way of surprising us and doing what we once thought was not possible. So being open to some of these extreme measures and situations is something we should consider and consider what they could do to our businesses, lifestyles, and retirement.

Historically, this must happen for the US Fed to break the persistent inflationary trends in the US – take a look at this chart.

The best-case scenario given the historical example is that Annual Inflation trends move aggressively to the downside by Q1:2023 or earlier. That will allow the US Fed to move away from more aggressive rate increases, which could significantly disrupt US & Global asset markets (pretty much everything).

Suppose Annual Inflation stays above 6~7% throughout the end of 2022 and into early 2023. In that case, I believe it is very likely the US Federal Reserve will be pushed to continue raising rates until a definite downward trend is established in inflation.

Algos, Illiquidity, Derivatives Are Active Culprits

There are two examples showing the US Fed acted ahead of a major downturn in inflation: one in the late 1980s and another in late 2007. Both instances were unique in the sense that the late 1980s presented similar sets of circumstances. Computerized trading, illiquidity, and excessive Derivatives exposure prompted the 1987 Black Monday crash and the 2007-08 Global Financial Crisis. (Source: https://historynewsnetwork.org/article/895)

Current Stage 3 Topping Pattern May Turn Into Stage 4 Decline

My research suggests the US markets are fragile given the current Inflationary trends and pending Federal Reserve rate increases. As I told above, the best-case example is to see Inflation levels dramatically decline before the end of Q1:2023. It is almost essential that current inflation levels drop back to 2~3% very quickly if we are going to see any measurable slowdown in Fed rate increases.

Secondly, the continued speculation by traders/investors remains very high, in my opinion. Given the historical example, traders should be pulling capital away from risks very quickly and attempting to wait out any potential Fed rate decisions. Below, I’ve highlighted where I believe we are on the Stock Market Stages chart. This is not the time to become overly aggressive with your retirement account/nest egg.

Many traders and investors are now buying this pullback in stocks, thinking it’s a buy-the-dip type of play. I think things are about to get ugly, and what we have seen thus far in 2022 is just the 12-year bull market ending, but the downtrend has not even started yet.

The time to buy the hottest sectors, like in 2020, will eventually come, and when it does, the Best Asset Now strategy (BAN) can generate explosive growth for traders, but now is not the time.

Proprietary Investor Strategy Confirms Cycle Trends

My proprietary Technical Investor strategy (TTI) has moved into GREEN trending bars – aligning very closely with the MAGENTA ARROW on the Stock Market Stages chart above. I’ve drawn both a GREEN & RED arrow on this chart to highlight the potential trending outcomes that likely depend on how quickly Inflation levels drop.

If Annual Inflation levels drop below 3% before we start Q2:2023, then I believe we may see a softer US Fed and more significant potential for a recovery in the US/Global markets over the next 18+ months. 

On the other hand, suppose Annual Inflation levels stay above 6~7% over the next 6+ months. In that case, I believe the US Federal Reserve will attempt to continue to raise rates aggressively – eventually resulting in a “bear market” breakdown event in the US/Global asset markets.

Comparing 2008 Bear Market Breakdown With 2022 Price Action

The last time we experienced a major Inflationary event where the US Federal Reserve was not actively supporting the US economy with QE policies was in 2007-08. This event prompted a -57% decline in the SPY before bottoming out and a -55% decline in the QQQ. Many of you lived through that market collapse and have strong feelings about how destructive that move was for everyone.

2022 Bear Market Breakdown

This time, after 12+ years of QE, prompting the “Everything Bubble,” – just imagine what could happen if my research is correct. But let me be very here. I am not forecasting, predicting, or saying this will happen. I do things differently when it comes to trading and investing. I only own assets and hold positions that are rising in value. I do this by following price charts and managing risk and positions.

You won’t ever catch me trying to pick a bottom, averaging down into losing positions, and you won’t find me trying to pick a top, either. What you will experience if you follow my work is that I always research and know all the possibilities an asset could move, and I plan to navigate each one safely. Once the price charts confirm a direction, I position my portfolio to profit from the new trend, which can be up or down.

A Tough Year Even for Experienced Investors

This year alone, the S&P 500 is down over 18%, and treasury bond ETF TLT is down 28%. As a result, anyone investor using the buy-and-hold strategy with any mix of stocks/bonds in their portfolio is under tremendous pressure and likely starting to worry about outliving their retirement funds. 

Here is a little background on the market markets for you. First, there have been 26 bear markets since 1929, with an average loss of 35.62 percent and an average duration of 289 days. Mind you, some of those bear markets were only a few months long, while others were multi-year declines, with some taking 5, 12, and even 17 years to return to breakeven. 

But the reality is breaking even with your assets is still a significant loss. After many years of being in a drawdown like that, don’t forget you are paying 0.50% – 2% annual fees from ETFs, mutual funds, and possibly advisor fees. Simple math shows that with a 17-year drawdown spending 1+% year to hold these losing positions, you still have a 17+% loss when assets return to breakeven because of these costs.

I know all this sounds bleak, and rightly so, it is. But there is good news. Market corrections and bear markets can be identified early and safely navigated if you know what to look for and follow the market VS. buy and hope, or try to pick market bottoms and tops.

2022 has been a very tough year to make money from the markets, not because of the market decline but because of the stage 3 phase in which the stock market is currently. It does not know if it wants to find a bottom and rally or roll over and start a steep bear market swan dive.

You can see how my Consistent Growth Strategy (CGS) has preserved our capital during these difficult times.

Concluding Thoughts:

In short, the world and even more so, the financial markets and assets have a habit of applying the maximum pain to investors before reversing direction. In fact, there is a “Max Pain” calculation in the options market to know where the maximum pain/losses will be for the stock market, and it’s crazy scary how the market will reach this price level during options expiry days on many cases.

The bottom line here is that the worst thing that could happen to most investors and capital in the markets now would be a multi-year bear market and drawdown in the markets, which would cripple anyone nearing retirement and everyone already retired. Having your nest egg cut in half will send shockwaves worldwide to the largest group of investors, the baby boomers, and anyone retired. In addition, it will likely create a flood of people looking for jobs to subsidize their retirement and crush many dreams, and that’s just the beginning of potentially a big unraveling of the economy, I think.

Labor rates will fall as millions of individuals look for work, we will be in a recession, and businesses will be laying off millions of employees, making it even harder to get a job. We are already seeing layoffs taking place. Then we could see the real estate market (residential and commercial) starting to fall apart. Things start to get a little depressing beyond that, so I’ll stop here, but you get my gist, I hope.

The average investor is positioned for higher prices with the buy-and-hold strategy. The critical thing I am trying to share with you is what could happen on the downside if things continue to erode and that you should think about how your lifestyle could change in the next 3-10 months if/when this happens and if you think you will be comfortable with your situation. 

Every week I remind investors I work with that now is not the time to expect to make money. Instead, it is about capital preservation. Focus on not losing; growth will naturally come in due time.

If you have any questions, my team and I are here to help you safely navigate both bull markets and bear markets with our CGS Investing Strategy.

Retired Asset Revester turned out to be a perfect strategy for achieving goals, then money worked for them, growing consistently even during a bear market.

Chris Vermeulen
Chief Investment Officer
www.TheTechnicalTraders.com

Disclaimer: This and any information contained herein should not be considered investment advice. Technical Traders Ltd. and its staff are not registered investment advisors. Under no circumstances should any content from websites, articles, videos, seminars, books or emails from Technical Traders Ltd. or its affiliates be used or interpreted as a recommendation to buy or sell any security or commodity contract. Our advice is not tailored to the needs of any subscriber so talk with your investment advisor before making trading decisions. Invest at your own risk. I may or may not have positions in any security mentioned at any time and maybe buy sell or hold said security at any

Are The US Markets in Stage #4 Of The Excess Phase Peak Pattern?

In 2020 & 2021, we published a very well-received series of articles related to a longer-term pattern we called the Excess Phase Peak pattern. At that time, we highlighted the five (5) components of the Excess Phase Peak pattern and provided a number of examples showing how it usually played out for traders.

You can review our first article: How To Spot The End Of An Excess Phase.

One more article to review is Revisiting The Excess Phase Peak Pattern, which contains links to many of our previous Excess Phase articles. We received so many comments and emails from this article that we thought now would be a great time to bring it forward once more. It highlights how the SPY appears to be moving into a Stage #4 Excess Phase Peak pattern again. Recently we’ve seen the SPY move through Phases 1, 2, & 3. Now, we need to see if the next breakdown in price will start or confirm the Phase #4 price breach.

Why Is The Excess Phase Peak Important?

The Excess Phase Peak pattern is a very common transitional phase for the markets where psychology and economic trends shift over time. Global markets typically require periods of pause, reversion, or a reset/revaluation event to wash away excesses. We’ve seen these types of setups happen near the DOT COM and 2007-08 market peaks. What happens is traders are slow to catch onto the shifting phases of the Excess Phase Peak and sometimes get trapped thinking, “this is the bottom – time to buy.”

The reality is that as long as the individual phases of the Excess Phase Peak continue to validate (or confirm), then we should continue to expect the next phase to execute as well. In other words, unless the Excess Phase Peak pattern is invalidated somehow, it is very likely to continue to execute, resulting in an ultimate bottom in price many months from now.

The 5-Phases Of The Excess Phase Peak Pattern

The Excess Phase Peak Pattern starts off in a very strong rally phase. This rally phase normally lasts well over 12 to 24 months and is usually driven by an extreme speculative phase in the markets.

Once a price peak is reached and the markets roll downward by more than 7~10%, that’s when we should start to apply the five unique phases of the Excess Phase Peak Pattern. If each subsequent phase validates after the peak, then the Excess Phase Peak Pattern is continuing. If any phase is invalidated, then the pattern has likely ended. For example, if we start by completing Phase #1 & #2, then the market rallies to a new all-time high – that would invalidate the Excess Phase Peak Pattern.

Here are the Phases of the Excess Phase Peak Pattern:

  1. The Excess Phase Rally Peak
  2. A breakdown from the Excess Phase Peak sets up a FLAG/Pennant recovery phase.
  3. Sets up the Intermediate support level – the last line of defense for price.
  4. Price retests #3 support & breaches the support level – starting a new downtrend.
  5. The final breakdown of the price is below the Phase 4 support level. This usually starts a broad market selling phase to an ultimate bottom.

Now, let’s take a look at the 2007-09 SPY market peak to see how these phases played out.

2007-2009 Excess Phase Peak Pattern

Highlighted on the chart below, Phase #1 & #2 played out perfectly, with a lower high for Phase #2 and a Phase #3 breakdown. By the time Phase #2 broke downward, we should have been keenly aware of the potential for a Phase #3 support level to set up and extend.

Phase #3 can sometimes result in an upward-sloping support channel (like a Bear Flag), but in this case, it is validated as a horizontal support level. We could have used the May 2008 peak as a reversal/breakdown trigger showing us an early Phase #3 change in trend. Having said that, until the Phase #3 support level is breached – these could turn into false breakdowns.

Once Phase #3 support is breached, and we clearly start a deeper downward price trend (moving into the Phase #4 search for the ultimate bottom), traders need to stay very cautious of risks. Phase #3 is one of the most troubling and difficult phases to navigate. It always seems like a “perfect new bottom in price” – until Phase #4 hits.

Ultimately, a Phase #5 bottom sets up (the ultimate bottom), and this usually coincides with extreme selling pressures. Often, the US or foreign governments are involved in trying to contain global risks or address global corporate/financial concerns. We must wait for confirmation of a bottom before we can really take advantage of the lower price levels – but this can be accomplished using technical indicators and price theory.

Excess phase peak pattern

The Current 2022 Excess Phase Peak Pattern Setup

On the chart below, I estimate we are in the midst of an early Phase #3 potential reversal setup. We’ve already seen a very clear Phase #1 peak, a -13.80% downtrend setting up the Phase #2 bullish Flag/Pennant trend. Then we watch as the Phase #2 breakdown took place, resulting in another -21.60% price decline. Those lows set up the current Phase #3 base/support level near $363.

I’m cautiously watching the blue-dashed trend line as a potential early warning trigger for the Phase #3 bullish recovery cycle. Usually, within a Phase #3 recovery, after establishing critical support, the rally phase becomes very important to validate/confirm the potential Phase #4 & #5 processes.

If the Excess Phase Peak Pattern is going to invalidate at this point, the critical support level will stay unbroken, and a new upward price trend will be established from the Phase #3 support/bottom. So, this is when we need to watch very cautiously for any significant shift in central bank policies, foreign capital risks, shifting sentiment, or anything else that may provide the needed support for the markets to keep rallying higher. Otherwise, we should expect the Excess Phase Peak to continue unfolding.

Excess phase peak pattern setup

In Conclusion

Traders and Investors should stay very cautious in this phase of the markets. Going “all-in” with a bullish or bearish expectation right now can be very dangerous to your bottom line. I found my tactical asset revesting strategy provides above-average growth and capital protection.

Learn why I rely on my proprietary CGS, BAN, and TTI strategies to assist in identifying opportunities in various market trends and how I use these to find opportunities to trade within the Excess Phase Peak Pattern. Volatility is still quite high, and there are opportunities for great trades if you understand risk factors.

LEARN FROM OUR TEAM OF SEASONED TRADERS

In today’s market environment, it’s imperative to assess our trading plans, portfolio holdings, and cash reserves. As professional technical traders, we always follow the price. At first glance, this seems very straightforward and simple. But emotions can interfere with a trader’s success when they buck the trend (price). Remember, our ego aside, protecting our hard-earned capital is essential to our survival and success.

Successfully managing our drawdowns ensures our trading success. The larger the loss, the more difficult it will be to make up. Consider the following:

  • A loss of 10% requires an 11% gain to recover.
  • A 50% loss requires a 100% gain to recover.
  • A 60% loss requires an even more daunting 150% gain to simply break even.

Recovery time also varies significantly depending upon the magnitude of the drawdown:

  • A 10% drawdown can typically be recovered in weeks to a few months.
  • A 50% drawdown may take many years to recover.

Depending on a trader’s age, they may not have the time to wait nor the patience for a market recovery. Successful traders know it’s critical to keep drawdowns with reason, as most have learned this principle the hard way.

Sign up for my free trading newsletter, so you don’t miss the next opportunity!

We invite you to join our group of active traders who invest conservatively together. They learn and profit from our three ETF Technical Trading Strategies. We can help you protect and grow your wealth in any type of market condition. Click on the following link to learn how: www.TheTechnicalTraders.com.

Benefits of Retirement Asset Revesting are to reduce account volatility while increasing and creating more consistent growth while stabilizing an investor’s emotional journey.

Chris Vermeulen
Founder & Chief Market Strategist

Discovering The World Of Options – Buying Or Selling

Long before weekly options were a thing when ticks were still in 16ths, and we downloaded batches of chart data over a dial-up modem…I “discovered” the world of options.

Like most options newcomers, I first learned about buying options – either Calls or Puts – to hopefully profit in a directional move of the underlying stock. I’d buy Calls to profit from an increase in the underlying’s price and Puts to profit from a decrease in the underlying’s price. Simple, yes? (Okay, maybe there’s a bit more to it than that.)

Soon after, I learned about selling options – about how I could “outsmart” the market by being a seller of options rather than a buyer. Ah, those were the days — of option-selling thrills and sudden “learning experiences.”

To Buy Or Sell Options

Option selling strategies can work well if your objective is steady, repeatable income. Selling options rather than buying does have advantages. As theta time decay works in favor of the option seller, premium sellers tend to have a higher probability of a profit. The tradeoff is that the profit is limited to the amount of net option premium collected.

Selling options – Puts or Calls – also comes with a potential obligation to either provide or buy the stock at the option strike price. Those obligations could present substantial risk depending on the underlying stock, implied volatility, position size, and how the trade is structured.

Being the “smart” young trader I was, I soon realized I could look for stocks with very high option premiums and focus on selling those. My trading platform even made it easy to create scans based on high implied volatility to find them.

It’s not hard to find extreme option premiums on small stocks. Quite often, there is a pending big news event. For example, a small pharmaceutical company that has its only product in trials and has FDA approval pending. In a situation like that, where the company’s whole future could ride on approval news, we’re likely to find astronomical option premiums. Don’t be tempted.

What could possibly go wrong? If the approval falls through for some reason, the entire company could be out of business in short order. And option sellers can be left “holding the bag.” It happens.

There are no giveaways in the options market. When premiums are high, they are high for a reason. When we buy options, we have risk up to the amount of premium paid. When we sell options, we could have a much greater risk of buying soon-to-be-worthless shares at the strike price.

Tips for selling option premium

Avoid Illiquid Product

If you see a stock with very thinly traded options, take it as a warning sign. If you want steady, consistent results, stick with larger, more well-known stocks with good liquidity. I regularly look at S&P 500 and Nasdaq 100 stocks for candidates. That’s an excellent place to start when looking for premium-selling opportunities. Stocks with weekly options, and reasonable participation in those options, tend to be better candidates.

When there’s good liquidity in the options, you’ll see decent volume and open interest across a range of strike prices and expiration dates. These options should have narrow bid/ask spreads, sometimes as little as a penny wide. You can get in and out of trades or extend duration by rolling at fair prices.

When the bid/ask spreads are extremely wide, it could be just you vs. the option Market Maker. Option Market Makers are the buyers/sellers of last resort. Market Makers generally hedge their directional risk as their core business is to make money not from directional moves but rather from the bid/ask spreads. So, if it’s just you and the Market Maker trying to agree on a price, don’t expect any mercy. Market Makers have kids to get through college too.

Avoid Extreme Premiums

Learn to recognize when premiums are extreme. The implied volatility will be high versus the historical volatility. When premiums look too good to be true, look closer. There is always a reason.

This is not to say you can’t sell expensive option premium.

But, for example, don’t sell Puts on more stock than you’re willing to own, even if the stock goes to $0.

Five Rules for Option Sellers

  1. Adopt a long-term mindset. We want our option selling strategies to be repeatable and sustainable so that we can stay profitably “in the business” for the long term.
  2. Don’t sell premiums on the hottest stocks you can find just because the premiums are huge and tempting.
  3. On any trade, mind your position size. If the stock makes an outsized move or even goes to $0, will you be able to shrug off the loss? Size accordingly.
  4. Always understand your worst-case risk. Stock prices can do things that we thought very unlikely when we opened the trade.
  5. Trade liquid products. I can’t emphasize enough how important it can be to get fair prices when buying, selling, or rolling. We don’t want to start our trades with the distinct disadvantage of not being able to get “fair” prices.

Sign up for my free trading newsletter, so you don’t miss the next opportunity!

WANT TO LEARN MORE ABOUT OPTIONS TRADING?

Every day on Options Trading Signals, we do defined risk trades that protect us from black swan events 24/7. Many may think that is what stop losses are for. Well, remember the markets are only open about 1/3 of the hours in a day. Therefore, a stop loss only protects you for 1/3 of each day. Stocks can gap up or down. With options, you are always protected because we do defined risk in a spread. We cover with multiple legs, which are always on once you own.   

Our Options Trading Specialist, Brian Benson, continues to knock his trades out of the park. His current win rate is 90%, meaning of the last 20 trades, 18 have finished in the money!

If you are new to trading or have been trading stock but are interested in options, you can find more information at The Technical Traders – Options Trading Signals Service. Brian, who has been trading options for almost 20 years, sends out real live trade alerts on actual trades, such as TSLA and NVDA, with real money. Ready to subscribe, click here:  TheTechnicalTraders.com.

A wide range of assets qualify for Single Asset Revesting, including indexes, sectors, individual stocks, bonds, commodities, currencies, or groups of related assets such as precious metals, which move together as a group.

Enjoy your day!

Chris Vermeulen
Founder & Chief Market Strategist
TheTechnicalTraders.com

Crude Oil Prices – Will They Hold Above Key Support Level Or Begin To Unwind?

Talk of a Global Recession may prompt a broad decline in Crude Oil prices as the excesses of the past 10+ years unwind. This unwinding process pushed to the forefront for traders and investors has been prompted by a massive inflationary expansion after the COVID-19 lockdowns. How will it play out in the short-term and long-term?

Unwinding Excess Price Cycle Phase May Push Crude Oil Below $60 ppb

I believe Crude Oil will contract as the initial reduction in demand associated with high-priced gasoline and oil products and the threat of a Global Recession recede. This decline in Crude Oil prices is complicated as China/Asia economic and COVID crisis events continue to disrupt consumer discretionary income and asset valuation levels.

Crude Oil prices are an excellent measure of consumer engagement and activity worldwide. As an economy grows, demand for Crude Oil increases as manufacturers, suppliers, service & support companies, and shipping companies must keep up. When an economy slows, or consumers decrease spending habits, Crude Oil starts declining as overall demand decreases.

The best way to interpret this is that consumers spend willingly when stocks and home prices skyrocket. Yet, they turn away from spending when stocks and home prices turn downward. It is a natural, psychological reaction to unknowns and stress.

Critical Support Near $87 May soon Be Breached

This Daily Crude Oil Chart highlights the key price highs and lows as Fractal levels. It is essential to understand that the nearest real support level below $87 is just above $61 for Crude Oil. If Crude Oil continues to slide downward, I believe a strong downward price trend may occur if the $87 support level is breached.

This would also suggest that a broad energy sector decline could take place over a 30~60-day period as Crude Oil attempts to identify new support. Yet, I believe this downward trend will be temporary in the longer-term scope of Crude Oil trends.

After the 2007-08 Global Financial Crisis, Crude Oil collapsed by -77%, from $145 to $34, then rallied +232% to over $113 by 2011. If a Global Recession phase continues through the end of 2022 or into 2023, I suggest the recovery phase will prompt a solid recovery in Crude Oil prices over the next 3+ years.

Not many investors survived the 2008 bear market using an advisor, which is why individuals have started to focus on advisorless asset revesting.

Crude Oil Futures Weekly Chart

Post-COVID Excesses Seem Similar To The 2007-08 Market Peak

The initial contraction in the US markets throughout the start of the 2007-08 Global Financial Crisis occurred during an extended peaking pattern in the US stock market. It began to gain downward momentum as the US financial system started breaking down (Lehman, Bear Sterns, & Others). The collapse in the financial markets broke consumer expectations and spending habits as demand for commodities collapsed.

This same type of market malaise seems to be currently taking place as the post-COVID rally phase has run its course and the global markets slide into a sideways price malaise – waiting for the “Lehman Moment.”

I suspect the current demand destruction related to inflationary trends, high gasoline prices, and the threat of another global house price peak may be sending consumers into a similar contraction cycle. This is why I believe Crude Oil will slide below the $87 price level and attempt to find new support near $61 before we see any real upward price trends in the energy sector.

Crude Oil Futures Daily Chart

Alternate Energy May Surprise While Oil Moves Downward

Providing an opportunity for traders, Solar, Battery, and other new forms of energy may experience a boom cycle while Crude Oil contracts. Crude Oil is used in all forms of manufacturing, transportation, and other aspects of the global economy. Yet, while Crude Oil contracts, alternative energy sources may experience a rising price cycle.

President Joe Biden just signed the Inflation Reduction Act into law, pushing a massive $369 billion into new energy security and climate change (Source: Smartasset.com). This new investment in alternative energy sources, green energy, and increased Crude Oil supply will dramatically shift opportunities within the Energy Sector.

TAN, the Invesco Solar Energy ETF, may rally more than 15% to levels above $101 before possibly continuing higher to retest the $120 to $125 2021 highs.

TAN - Invesco Solar ETF Weekly Chart

Learn how our Total ETF Portfolio strategies can help you more efficiently protect and trade these big sector trends while keeping you away from high-risk setups.

LEARN FROM OUR TEAM OF SEASONED TRADERS

In today’s market environment, it’s imperative to assess our trading plans, portfolio holdings, and cash reserves. As professional technical traders, we always follow the price. At first glance, this seems very straightforward and simple. But emotions can interfere with a trader’s success when they buck the trend (price). Remember, our ego aside, protecting our hard-earned capital is essential to our survival and success.

Successfully managing our drawdowns ensures our trading success. The larger the loss, the more difficult it will be to make up. Consider the following:

  • A loss of 10% requires an 11% gain to recover.
  • A 50% loss requires a 100% gain to recover.
  • A 60% loss requires an even more daunting 150% gain to simply break even.

Recovery time also varies significantly depending upon the magnitude of the drawdown:

  • A 10% drawdown can typically be recovered in weeks to a few months.
  • A 50% drawdown may take many years to recover.

Depending on a trader’s age, they may not have the time to wait nor the patience for a market recovery. Successful traders know it’s critical to keep drawdowns with reason, as most have learned this principle the hard way.

Sign up for my free trading newsletter, so you don’t miss the next opportunity!

We invite you to join our group of active traders who invest conservatively together. They learn and profit from our three ETF Technical Trading Strategies. We can help you protect and grow your wealth in any type of market condition. Click on the following link to learn how: www.TheTechnicalTraders.com.

Tactical Asset Revesting through technical analysis provides clarity on market direction and risks while removing the guesswork from trading.

Chris Vermeulen
Founder & Chief Market Strategist

ABT – Options Trader Tip Of The Week

In the trader tip video below, Brian is having a look at ABT (Abbott Laboratories) charts. ABT has been going through a period of consolidation since about the end of June. More recently, in the last several days, ABT has been looking a little more bullish, turning to the upside.

One thing we could do here is to buy shares of the stock if you want to leverage a position. We can also buy an end-the-money call and give a few weeks to let these positions work. The last alternative would be doing a bullish put vertical credit spread.

TO LEARN MORE ABOUT THE ABT trade setup – WATCH THE VIDEO

Subscribers: Please let us know what you would like to learn, and we will add it to the roster of our weekly Technical Trader Tips!

Non-subscribers: Please enjoy these micro-lessons as a way to further your education and understanding of how a technical trader…well…trades!

TO EXPLORE THE STRATEGIES THAT BRIAN USES, PLEASE VISIT Optionstradingsignals.com. YOU’VE GOT MORE TO GAIN THAN TO LOSE WHEN SEEKING INFORMATION!

Individuals who utilize Vanguard Asset Revesting as part of their retirement portfolio experience smaller drawdowns, less financial stress, and higher returns.

Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.

MJ – Trader Tip Of The Week – Video

In the trader tip video below, Chris dives into MJ which is the Alternative Harvest ETF. MJ was a hot commodity back in 2020 but has then fizzled out and become one of those sectors that continues to slide, making new multi-year lows. With that said, we have seen gross stocks start to come to life over the past couple of weeks.

We’ve had many great trades and closed out a lot of great gross sector ETF trades already. Overall, MJ is giving a new trigger that can potentially see a 10% pop and rally.

TO LEARN MORE ABOUT THE MJ Alternative Harvest ETF – WATCH THE VIDEO

Subscribers: Please let us know what you would like to learn, and we will add it to the roster of our weekly Technical Trader Tips!

Non-subscribers: Please enjoy these micro-lessons as a way to further your education and understanding of how a technical trader…well…trades!

TO EXPLORE THE STRATEGIES THAT CHRIS USES, PLEASE VISIT THE TECHNICAL TRADERS. YOU’VE GOT MORE TO GAIN THAN TO LOSE WHEN SEEKING INFORMATION!

Disclaimer: None of this material is meant to be construed as investment advice. It is for education and entertainment purposes only. The video is accurate as of the posting date but may not be accurate in the future.