Howdy traders, it’s Bryce here.
There’s a key indicator to watch right now …
It will help us pinpoint hot plays and assess sentiment.
I check it every morning to gauge market strength before I plan a trade.
There are some days that won’t offer as many setups. And that’s fine …
Instead, it’s imperative we use downtime to study and prepare for when the market heats up.
And thanks to this free indicator, I’ve got a good idea of whether the day will be slow or red hot.
For example, yesterday morning we didn’t see very many opportunities.
Here’s how it works …
Market Strength
The larger stock market doesn’t directly relate to our lower-priced niche … but the sentiment has a distinct trickle-down effect.
For that reason …
Every time I wake up I check major indices like the …
- S&P 500 ETF Trust (NYSE: SPY)
- SPDR Dow Jones Industrial Average ETF Trust (NYSE: DIA)
- Invesco QQQ Trust (NASDAQ: QQQ)
In the morning, if prices are gapping up and on a bullish trajectory, I can expect that bullish price action to manifest among lower-priced stocks.
Last Friday the markets gave a lackluster performance at the height of their run.
That’s why it was understandable for market players to show wariness on Monday morning. We’ve got a whole week ahead of us and the current bull market could be described as a tad over-extended.
Major indices are still in a consolidation period. Once they choose a direction the volatility will return.
Until then … we might see more runners like Tupperware Brands Corporation (NYSE: TUP).
And by that, I mean: random spikes from heavily shorted stocks.
The plays can be lucrative as long as we trade with risk in mind. But they’re not ideal for beginners.
Here’s my main message, don’t feel forced to trade if there aren’t any good plays.
Tim Sykes always says to “trade like you’re retired”.
That mindset helps us choose the best plays. We only trade (come out of retirement) if there’s a stock that’s too good to miss.
Besides, there will be more opportunities later in the week …
Thursday Opportunity
I’m sure by now you’ve heard about artificial intelligence.
The tech sector is using the innovation’s momentum to push higher. And it’s quickly seeping into different sectors.
We’re starting to see its effect on finance.
Specifically in our niche …
On Thursday at 8 PM Eastern, lead trainer with StocksToTrade, Tim Bohen will give a live presentation on a huge AI breakthrough.
If you’re reluctant to trade while the market ping pongs and consolidates, sign up for Thursday’s webinar to prepare for the momentum we want.
Artificial intelligence is still a young technology. It’s only been around for a few months. We’re at the beginning of this momentum.
Reserve your spot for Thursday and get ahead of the curve.
See you in the next letter.