Right now in my paid research services, we almost always trade market extremes; the more extreme the move, the bigger the profits – like the 200% gain we made on VIAB the other day.
But the kinds of extremes we play depend in large part on the market's "narrative," the prevailing sentiments driving stock prices – up or down. That's why we align the bulk of our trades with that narrative.
At the moment, we're mostly looking at strong stocks, in quality companies, caught up in broader mechanical pullbacks. When the stock "snaps back" we see gains on the price and even bigger profits on trades we make on those shares.
It sounds simple, and it's tough to argue with the profits. All this is happening because the market is telling us that it favors moves higher right now, and so a bullish overall stance is the right one to take.
But there are some troubling signs out there – some gray clouds out in the distance – that every investor needs to know about…
About the Author
Nationally recognized technical trader. Background in engineering, system designs, and risk reduction. 26 years in the markets.