Dear Reader,
I know, I know. How can the S&P 500 move higher in a negative momentum environment?
Well, how many times can the executives at NVIDIA (NVDA) say “AI” on a conference call?
The answer is 75.
NVDA barely beat lower expectations set by Wall Street, saw a 21% drop in its revenue year-over-year, and witnessed weakness in its data center business.
The result was a 14.5% jump in the stock. Its PE Ratio has hit 133x. It’s trading at a price to revenue now north of 20x.
There’s nothing you can do about this sort of market behavior. Except maintain conviction.
With momentum still negative and the PCE data coming tomorrow, it’s easier to keep a clear head.
Holding Still
What happens if momentum turns positive by the end of the day?
Well, we manage our risk, and we cut our positions. That can be difficult to do.
But we don’t have any control over the YOLO elements of this market.
In fact, risk management might mean a bigger loss than expected. But in this environment, we are betting small. We’re aiming for ideal conditions while capital is leaving the market.
If you want to understand how momentum works, I’ll dig deeper into it today.
Tune in at 12:30 pm.
Today’s Momentum Reading
Recap: The World’s Biggest Indicator (Momentum) is Red…
The market leveraged the irrationality of Nvidia and Alibaba’s earnings to attract more buyers before returning to its regularly scheduled program. As I highlighted yesterday, once capital decides to exit the market in structured fashion, it’s difficult to just flip the switch back positive. I am closely monitoring the dollar (UUP), which is performing strongly this month
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
Markets are irrational and can move against expectations.
That’s why I’m doubling down on my recent hyper turn signal with 4 new trade alerts I just issued.
My signal uses multiple momentum triggers to confirm market direction.
And I consider it the best way to see where the market is going.
More importantly…
I found that the biggest trading opportunities pop up immediately after a hyper turn.
That’s the sweet spot for some huge gains.
And this is what I’m targeting on today’s 4 new plays.
Now look, it doesn’t matter whether the market is going up or down.
Because once the hyper turn appears, a whole category of trades opens up, like the ones I’m playing today.
And the profit potential is through the roof.
This is how you go for the big bucks in today’s unpredictable market environment.
If you’re not using hyper turns to trade, you’re missing out.
Add hyper turns to your trading arsenal and get my 4 new trades today.
Stay Liquid,
Garrett
