Dear Reader,
After a few weeks, we finally had a positive turn in the S&P 500. But the market is taking profits today as we start to assess the state of the economy. I'm long a few positions for the moment, but this will be a very challenging next few days.
Mike Burry knows what I'm talking about.
Let's dive into the moves of the market on Thursday. (click here to receive Garrett's premarket flashpoint report)
Keeping It Short
We're back at a three-week high, and it doesn't really feel all that positive. The S&P 500 and the Nasdaq both pushed higher, but the Russell 2000 is lagging a bit. We are still in a low-volume environment - with the SPY volume at 72% of traditional volume.
The market is largely preparing for tomorrow's PCE Inflation number. I think that the market is largely expecting this number to be elevated. But I get the sense that the figure doesn't matter. A lower number will likely signal the end of rate hikes for the year.
A figure that beats expectations will largely be ignored on the back of expectations that the May meeting will produce the last rate hike of the year. Meanwhile, the focus is largely centered right now on the banking system and the efforts to contain a credit crisis.
Right now, I'm following the signal. I know that can be difficult... even as the market pulls back during a day-trading session. (get your hyperturn list ready)
Today's Momentum Reading
WORLD'S BIGGEST INDICATORS
Broad Market: Red
S&P 500: Yellow
Recap: The World's Biggest Indicator (Momentum) is Yellow...
We're positive on the S&P 500, but the market has seen a bit of profit taking today. I'm looking for a broader rebound in the final hours today.
Long Shot Trade
Buy to Open the Robinhood (HOOD) April 6, 2023 $9.50 call for under $0.20. Remember, this is a low-probability trade, so please be conservative and manage the trade appropriately. (learn higher probability of success trading with me in flashpoint trader)
What You Missed
Let me tell you a story about Western Digital Corp. (Nasdaq:WDC).
This story has nothing to do with how the tech stock shot up 5% yesterday.
It's about how this scientifically-constructed technology found a 139% winning trade on this stock - with a minimum investment of 70 bucks.
WDC was trading around $38.50 on February 28... and this trading tech identified a high-probability trade opportunity.
Tom Gentile bought a single trade for 70 bucks.
19 days later, it had dropped to $35.
And he sold that $70 trade for a total profit of 139%.
And he owes it all to the revolutionary technology called Quantum Scripts.
For most traders, 139% is a wild and extraordinary win. But in the past 11 months of trading Quantum Scripts, it's not even in the top five:
Tom has yet to find a technology that can compete with the kind of gains Quantum Scripts has produced.
Stay Liquid,
Garrett
The post A Swing Positive on S&P 500 Presents Us with a Trade appeared first on Midday Momentum.
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.