Trust price, not news

Tues 2EST Kaufman I Never.Give.Up 💪

Happy Monday, everyone!

When it comes to trading and investing, there are two main schools of thought when it comes to price action:

1. Markets are efficient

2. Markets tend to overshoot

For clarity, the first viewpoint is based on the belief that the price of a financial instrument reflects all known information at any given time, and that timing trades is impossible.

In contrast, the second is based on the belief that prices tend to overshoot their mean due to important psychological drivers like fear and greed.

 As a trained economist, you’d think that I’d be on board with the first school of thought, since it is deeply rooted in fundamental principles.

But, as a trader, I know that markets exhibit price patterns that result from the millions of individual and institutional investors that trade them.

I also know that one of the best trade setups occur after markets witness a big rally, and are no longer able to sustain that rally in the face of growing uncertainty.

Well, even before Iran sent a volley of missiles and drones toward Israel this past weekend, the market was already witnessing the greatest slowdown since the massive 32% rally off the November lows.

I am not going to sit here and tell you that I know exactly what’s going to happen next.

But I will tell you that, after 20+ years of executing trading strategies during many situations such as this, price action does not lie.

In the coming weeks to months, you are going to be bombarded by sensationalized headlines geared toward generating fear.

Even if, behind the scenes, some ground is being made to prevent an all-out war in the Middle East, that’s just what the media does.

But your job as a trader MUST be not to overreact.

And to do this you’ll need to know how to “read the tape.”

That is to say you’ll need to understand when supply and demand have reached a point where the next great setup has emerged for you to pounce on.

And I found a perfect one on Tuesday last week.

That’s when I immediately began to educate my Alpha Hunter members about what I was seeing and how I planned to take a rare stance against the market. 

While I do have an arsenal of indicators that I can reveal as the reason for this, the chart I am about to show you was what I based my final decision on.  

When it comes to trading, simple is best, and this chart offers a perfect example of this.

This next chart is a daily chart of QQQ, the NASDAQ 100 ETF.

What it reveals is that, up until last week, every dip off of the November lows has been bought without hesitation.

Then, all of a sudden, that began to change last week.

And THE signal that buyer interest had begun to fade was the QQQ’s inability to hold the support of its 20-day moving average.

I am a firm believer that, “Nothing good happens under the 20 averages,” because of how important this line is as a measure of the market’s sentiment of the previous trading month (there are 20-21 trading days per month).

Members that followed along with me last week know full well that trends begin and end with this critical line. 

Now, even though last week’s training was a “members only” event, I want to share the recording of it below.  

In this Alpha Hunter lesson from Tuesday, I’ll show you the easy ways I use to spot market reversals.

You can see I had a pretty good read last week on how to trade QQQs bearishly during the live session I had on Tuesday with Alpha Hunter members.

Folks, betting against a bull market is something I rarely do, and that’s why this training session was so valuable.

I explained the exact trade I was looking to make on it and WHY … sent out this alert just after the session was over:

Added to my position just a little later when I saw a good opportunity:

Don’t worry if you don’t understand the mechanics of these trades – that is what I am here to teach you!

The day after I made this trade, I was up well over $5000…

I went on to lock up over $7000 in profits on this short position on Friday last week.

At this point, that is the actual booked profit on the trade. No one can take that away from me.

Because the top of QQQ’s massive “bearish engulfing” candle from April 4th shown below is still a very strong level to use to judge the market’s ongoing bearishness, – I’m just getting started!

As long as this level holds, I can continue to “harvest profits” each week and add more to it through the first week of May.

As I set up the trade for this coming week, you can see it has already gained over $2000 by the close on Friday…

While I don’t know what will happen precisely this week, if QQQ continues to trade under that 20-day line and slips even more, I could make nearly $20,000 more this week, and then I still won’t be done with it!

This is a great time for you to take advantage of a very special opportunity to join me in Alpha Hunter.

Here, you will find that I have discounted the 2-year membership plan by nearly 50% for you.

When the dip buying becomes less reliable, as is the case right now, this is when unprepared traders struggle.

That means this is also the best possible environment to learn from a 20+ year veteran trader and educator.

Learn to get on the right side of the trade.

Make the move to join Alpha Hunter right now, and don’t let another crucial opportunity get away from you.

To YOUR success,

P.S. As always, for questions about any of our services, contact our amazing sales team at 1-800-585-4488 / [email protected]. They’d love to hear from you!

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