You may be wondering … Why are stocks getting so destroyed today?
Ultimately, it all comes down to one word … inflation.
The rapid surge in the cost of nearly everything has majorly affected the price action in the markets throughout the entirety of 2022.
Let’s look at recent history for some perspective…
Last month, the July consumer price index (CPI) — a key inflation metric — came in at 8.5%, representing a 0% month-over-month increase in the prices of goods and services.
The market rallied in response.
Today, the August CPI numbers came in at 0.1%, representing a 0.6% month-over-month increase…
And the S&P 500 ETF Trust (NYSEARCA: SPY) is down a whopping 3% following the print.
I can’t say I didn’t warn you…
I’ve been predicting a re-test of the market’s June lows, and today could be the initial crack that leads to the major downside I’ve been waiting for.
Seven Coins Set to Mint Historical Returns
While everyone else is focused on the record number inflation…
And terrible economic policies being enforced by our current Presidency…
Matt Monaco believes that 99.99% of folks are about to miss out on what’s likely to be the biggest wealth creation event of the decade.
And they’re hosting an emergency broadcast titled the “Final Crypto Shock” on Wednesday, September 14th at 8pm ET.
Where you’ll learn exactly what’s going on, what to expect, and the top 7 coins to buy to potentially turn just a few hundred dollars into windfalls of profits over the coming months.
You won’t want to miss it.
But with crazy volatility comes specific considerations for Evolvers. You can’t trade a massive correction like you would a normal week in the markets.
Keep reading and I’ll show you two critical steps I recommend taking to maximize your trading during this extra-volatile period for stocks…
Step #1: See Bounces as Re-Entry Opportunities
Let’s say you’re trading puts on a stock and it’s tanking…
Sounds pretty good, right?
You’ve hopefully booked profits quickly on the way down.
And this is where a lot of traders pack up and call it a day, but that’s a mistake.
If you simply move on to another chart at this point, you’re potentially leaving money on the table.
Instead, you should think about waiting for the chart to rise back into resistance … and then buy more puts.
Bottom line: I want you to start seeing bounces as re-entry opportunities.
If you’ve followed my trading for a while, you’ve probably noticed that I trade many of the same tickers over and over again.
Oftentimes, I’ll trade puts on a stock only to buy more puts into a bounce later that week.
Take the ProShares Bitcoin Strategy ETF (NYSEARCA: BITO), for example…
I’ve traded this ticker more times than I can count, almost always buying puts.
I trade the downside, close the position out, wait until the chart bounces (like it has over the past few weeks), then buy puts again…
This is how I’ve made nearly $4 million in the markets…
And on that topic, this is a SUPER IMPORTANT week for crypto. Why?
My mentor, Tim Sykes, has been studying the crypto market along with millionaire trader Matt Monaco and they’ve discovered something incredible. They’re having an emergency meeting tomorrow to discuss all the juicy details…
You won’t wanna miss Tim and Matt’s conference — The Final Crypto Shock — TOMORROW, September 14 at 8 p.m. Eastern … click here to sign up BEFORE IT’S TOO LATE!
So, next time you’ve closed out a puts trade, don’t assume the play’s over because one wave has ended. Another’s likely coming.
Take the bounces for what they are — opportunities to re-trade a winning setup.
Step #2: Trust Your Gut
I predicted this downside move in the markets, but I didn’t nail a juicy puts trade today.
Bottom line: I wish I’d capitalized harder on my foresight.
$127k in just 24 hours?! 😳
Did you catch the Shadow Trades Summit with Tim Sykes and Mark Croock?
Mark pulled back the curtain on his shadow trades strategy…
Detailing step by step how he was able to make $127,000 in just 24 hours, during the middle of a market crash!
Here’s how YOU can do that … by trusting your gut.
The stock market will constantly try to fake you out of your conviction. This is especially true this year. Don’t let it succeed in doing so.
Intuition is priceless for traders. If you have a strong feeling, it’s important to consider acting on it.
Will your gut always be correct? Of course not. No one has a 100% success rate in the stock market.
But as you gain more experience studying and trading, you should notice your gut predictions becoming more accurate.
This is an example of skill and experience coalescing with your intuition. It’s a major ‘a-ha moment’ for many traders. It’s what I’d like every Evolver to aspire to.
Just look at my top student, Jenny Smith. She’s a perfect example of exactly what I’m talking about, and now she’s enjoying the fruits of her labor…
— Jenny Smith (@jpsmith5804) September 12, 2022
If you can be like Jenny … combining your data, technical analysis, and intuition into an airtight game plan … you’ll be potentially unstoppable.
On the other hand, if you don’t trust your gut or have confidence in your convictions … you’ll probably become part of the 90% of traders that FAIL!
In case you haven’t noticed, this isn’t a normal market.
If you don’t consider the unique ramifications of the current backdrop, you’re setting yourself up for disaster.
Take my advice. Follow these steps and you’ll be prepared while other traders are panicking.