Forming counter-attack plans

Welcome to Tuesday Folks,

After what I know was a painful trading environment for a lot of unprepared traders, I know that it would have been nice to be able to enjoy the beautiful weather that has become synonymous with late September.

But, Mother Nature just hasn’t been cooperating, at least along the eastern seaboard as Tropical Storm Ophelia SLOWLY makes its way through the area 🌧️.

While we were treated to a little bit of a respite in the market’s recent sell-off on Monday, storm clouds are brewing once again this morning as futures look ready to gap lower at the open.

If you’ve been following Uncle Jeff, though, this is exactly what you want to see after I started my members off with my idea of the week, which was to buy QQQ puts.

You could easily have made the argument that the market was “oversold” coming into this week, so it’s no surprise that the market staged a bit of a dead cat bounce😿on Monday.

But if 20+ years of trading have taught me anything it’s that oversold conditions can persist when there has been a structural trend breakdown.

Now, what I am about to say may surprise you, but let it be one of the many invaluable lessons that Uncle Jeff passes along to you on your journey.

Negativity is building, and that is a good thing if you are looking for the market to start formulating a bottom.

You want sentiment to become so extreme that there simply aren't anymore bearish traders left to sell the market.

But like many things in trading, building a bottom is a process, and we’re just not there yet.

In fact, my AI indicators simply aren’t showing a recovery yet, so I remain on the bearish side of this market.

One of the TOP things I am eyeing this week to get a gauge on confidence, specifically the confidence of the consumer, is Costco’s (COST) earnings.

As a trained economist I know that at times like this, when the wealth effect is being threatened, nothing is more important to watch than the health of the consumer.

Teachable Moment:

The wealth effect, or peoples’ willingness to spend on discretionary items, rises and falls as the value of their assets rise and fall. Simply put, consumers feel more financially secure when the value of their homes or investments increase.

Now that Uncle Jeff has dropped some important behavioral education on you, I think you can now grasp how important it is to watch COST earnings for any signs that the consumer is pulling back on spending.

If you are going to survive in this market, you have to be nimble as you develop your counter-attack plans.

You have to know multiple strategies that take advantage of the multiple factors that affect trading results.

And that’s why I (and all of my partners) use multiple strategies to navigate the ups and downs of the Market.

So if you want to hear about my number one strategy (the one I even taught to my own son this summer)...

Come join me in Alpha Hunter, where I’m pursuing a very aggressive goal of banking $10k a month for a total of 12 months (I’m three months in so NOW is the perfect time to get in for October’s reset, which we are all looking forward to!!!).

You can jump in Straight Away HERE at these prices (hint: I would just buy the yearly because if I don’t make my super-ambitious goal, I will give you another year for free, but I’m hustling my butt off to get there nevertheless…):

So don’t wait any longer – October is almost here!!!

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