Hey traders, it’s Matt here.
The market slid lower again last week.
The S&P 500 ETF Trust (NYSE: SPY) showed us a drastic pullback as major tech companies like Alphabet Inc. (NASDAQ: GOOG) and Tesla Inc. (NASDAQ: TSLA) reported lack-luster earnings.
Take a look at the SPY chart below, every candle represents one trading day:
SPY chart multi-month, 1-day candles Source: StocksToTrade
But there’s a reason to be excited about this week …
There are catalysts at work right now that could cause a HUGE market rally.
We’ve been waiting for this for months!
And finally, a wave of bullish momentum is about to hit the market.
U.S.A. For The Win!
Latest reports show inflation easing and the U.S. economy is still growing!
See the headlines below:
Some analysts are calling it a “Goldilocks” economy.
To translate: It seems the U.S. is skirting a recession while bringing down inflation simultaneously.
It’s the best case scenario right now.
And as a result, a FED interest-rate cut is still very much on the table in 2024.
This bullish economic data could be the catalyst that markets need to rally this week. Things are looking good!
We’re wading through the highest interest rates Americans have seen in over a decade. Take a look at the chart below:
The high interest rates are supposed to discourage new business investment, lowering demand, and theoretically prices should slow to meet the lower demand.
We’ve been waiting for lower interest rates to cause a market rally. But we first need inflation to drop comfortably between 2% and 3%.
For the first time in months, it looks like we could be close to a lower FED decision …
How To Capitalize
First of all, we need to identify the bullish momentum in the market.
There’s no need to try and predict whether the FED will lower interest rates. For savvy traders, there’s more than enough time to react once the market starts to spike.
We’re still looking for the same plays …
- A low float, less than 10 million shares.
- Spiking +20% on the day.
- With hot news.
- A trading volume of at least 1 million shares.
- Popular pattern recognition.
For traders like Bryce and myself, looking for these runners is like second nature. We’ve been doing it for so long.
But for new traders, it’s easy to get distracted.
Three of My Favorite Stocks Scans
Are you tired of feeling overwhelmed by the countless trading strategies and patterns? Well, we’ve developed three new scans that search the entire market for stocks with specific criteria that match some of my favorite patterns.
That way you can focus on stocks that not only have the potential to run — but have the potential to follow a pattern so that you can actually trade it.
There are a lot of stocks moving every day. And it can be difficult for a new trader to tell the difference between a runner that follows our framework and one that doesn’t.
Luckily … In 2024, new traders can use AI to find and track the hottest runners.
I didn’t have this tool when I started trading. Neither did Bryce. We were on our own to find the best setups!
If I had AI when I started … My trading journey would have been A LOT different.
I might have passed the $1 million milestone even earlier!
>> Use AI to build smart positions on the hottest stocks in the market <<
Start to pay attention before the next market rally. Otherwise you could miss it!!
Cheers,
Matt Monaco
*Past performance does not indicate future results