Dear Reader,
One day, someone will make it make sense. Today is not that day.
After the worst week of the year, the markets squeezed higher in the first hour of trading.
The markets “celebrated” an absolutely dismal Durable Goods report that showed that the U.S. economy is really in trouble. Last week’s worst performers are pushing higher, sucking all the air out of the big move lower that dominated last week.
The Buy-the-Dip crowd continues showing an irrational willingness to buy junk at all costs. This feels like it’s setting up for another selloff as funds use any short-term pops to sell into strength. While momentum is negative – the trend is lower highs and lower lows.
It can be very hard to stomach these short-squeeze moves. But it’s part of the process.
Let’s talk about how to take advantage of this environment.
Holding Still
Low volume has been the name of the game. After last week’s selloff, the market this morning took a pop higher on lower volume. The Dow Jones stood under 75% relative volume this morning. That’s not exactly bullish. It’s just more manipulation.
I do feel like I’m going a tad insane sometimes when I’m watching capital exiting the market on a net level, yet the S&P 500 or the Russell 2000 squeezes higher. But this is just the way this operates nowadays. Toss on record levels of options trading and low-volume bidding, and you end up in an environment where logic just flies out the window.
This is really starting to feel like 2007-08 to me. We have an economy that is falling off a cliff but a market that just keeps screaming “Yolo.” We have funds that are using short-term pops to sell into willing retail hands. We have a new narrative that keeps arguing that the Fed will make some magical move (the market NEVER goes up after a Fed pivot, yet somehow, we’ll see some magical shift?)
Today’s Momentum Reading
Recap: The World’s Biggest Indicator (Momentum) is Red…
We’ve seen some low-volume bidding today on the back of the worst week since 2022. It’s not surprising to see some retail traders chase this noise. But I’m still being very cautious. I think there is a challenge right now for investors to really understand how institutions are behaving. The lack of volume in this market is very concerning. As I noted, we are largely flying blind by a lack of institutional data due to a cyberattack against the CFTC.
Today’s Trade
The market is on the move making it difficult to recommend anything at the moment. Watch the show at 12:30 pm ET and we’ll see if we can find something.
What You Missed
The situation with Russia and Ukraine is escalating quickly – and it’s too easy to get caught up in the emotions of it all.
The smartest thing you can do is focus on putting yourself in the best position possible…right now we focus on this…
New sanctions on Russian trade are creating a massive shift in global markets.
Around $4 trillion could move from Russian hands to American companies – giving us brand-new opportunities to cash in.
I’m doing a special live briefing tonight at 8 p.m. (ET) to help my followers war-proof their portfolios.
Tonight I’ll break down what’s happening in Ukraine, how new sanctions could pump trillions into the US economy, and I’ll show you the best opportunities to profit.
Click here to RSVP for tonight’s 8 pm livestream.
We’re seeing massive shifts in the global money flow.
Tonight, I’ll go over the changes we’re seeing
We’re seeing new increases in demand in energy, agriculture, automakers, semiconductors, and military tech.
Now is the time to position yourself in front of these new money flows.
The livestream won’t cost you anything to attend, but our seats are limited due to our server capacity. So act fast, and receive my Flashpoint Fortunes – East Palestine Train Derailment Report, just follow the instructions here.
Stay Liquid,
Garrett
