The Most Powerful Patterns in the Stock Market These 5 unique patterns have proven to be incredibly historically accurate. Most investors have no idea which price patterns work and which donât⦠And it may SHOCK you when you see which one performs best. [LEARN THIS TODAY]( By clicking the link above you agree to periodic updates from WealthPress and its partners ([privacy policy]( How to Escape the Trap of Chasing the Wrong Stock Market Weekly Market Overview As an investor, you might keep a close watch on the Dow Jones Industrial Average, yet this doesn't necessarily provide an accurate picture of overall market performance or your own investment trajectory. The 2023 stock market paints a bifurcated image: a thriving sector dominated by tech companies and a languishing rest. This year, the Dow has risen a modest 1.2%, while the S&P 500 has soared above 9%, excluding reinvested dividends. The disparity between the indexes is the largest since 1945, according to Bespoke Investment Group. In this landscape, it's tempting to embrace high-risk strategies in an attempt to match the market's top performers. The temptation is clear considering high-valued growth stocks have surged 21%. Cathie Wood's ARK Innovation fund and MicroSectors FANG+, both with a focus on high-value tech stocks, have increased by 25% and 53%, respectively. Contrastingly, value stocks have fallen 2%, even underperforming the Dow. Much of the Dow's underperformance is due to its unique structure, which gives greater weight to high-priced stocks rather than company size. UnitedHealth Group, despite its 10% share price drop this year, significantly influences the Dow due to its high trading price, unlike in the S&P 500 where its weight is only just over 1%. Apple, though it has grown 35%, has a less substantial impact on the Dow because of its lower share price, even though it comprises 7.4% of the S&P 500. Howard Silverblatt, a senior index analyst from S&P Dow Jones Indices, emphasizes the Dow's eccentricity, noting that if weighted by market value, Apple would make up 24.8% of the index, and Microsoft would constitute 22.6%. This highlights that 2023 has been a rewarding year for investors heavily invested in leading tech stocks, while others may find themselves lagging. Concentrating on underperformance can induce a phenomenon known as 'loss chasing', where investors undertake increased risks to reach break-even, often leading to potentially risky investments. Choosing to stop this behavior triggers the same brain regions associated with pain and disgust, hence why it's difficult to quit even when aware of the detrimental effects. Recently, the Health Care Select Sector SPDR ETF received $1.2 billion in new money, suggesting some investors might be doubling down on losses, banking on a quick rebound. Other investors have sought refuge in long-term Treasury bonds, which have seen almost 10% growth this year. However, this approach could backfire if the Federal Reserve doesn't cut interest rates soon. Investing inherently involves accepting losses, which is often a psychological battle. Defining a loss depends on your reference pointâyour original investment, 2022 year-end figures, the lows of March 2020, or another benchmark. A loss might seem severe over one period but less so when viewed from a different time horizon. By adjusting your reference point, you might find you're not as far behind the market as it seems. Therefore, before venturing into 'loss chasing', consider whether you're indeed dealing with a loss, and save yourself the trouble of having further losses. If you missed yesterday's free market overview, Jeff and Richard went over a litany of great topics including - Market Overview - Mapping Out Key Levels - Is your system or strategy profitable? - How to use Trade Expectancy to level up your trading game - And our most requested segment âShare your favorite Symbol"! Plus the only free weekly Roundtable Q&A in the industry Click the button below to see the recorded version and don't forget that the weekly market overview is FREE to attend every Tuesday night. The only interactive market overview in the industry complete with Q&A and never a sales pitch! Just hard-core market chat and education, 100% free! A quick snapshot taken from our weekly Market Overview. Can you guess what stock this is? [TAKE ME TO THE MARKET OVERVIEW (FREE VIDEO)]( Sponsored
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-Doug D Another real review from a loyal customer at Altos Trading Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street
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USA Disclaimer: The Altos Trading Alert Newsletter is published as an information service for subscribers, and it includes opinions as to buying, selling and holding various stocks and other securities. However, the publishers of the Altos Trading Alert Newsletter are not brokers or investment advisers, and do not provide investment advice or recommendations directed to any particular subscriber or in view of the particular circumstances of any particular person. Altos Trading, including its owner, does not participate in any trades issued through the alert services. Subscribers to Altos Trading or any other persons who buy, sell or hold securities should do so with caution and consult with a broker or investment adviser before doing so. Trading securities and options involves risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade securities and options, and must meet suitability requirements. Past results are not necessarily indicative of future performance. Performance figures are based on actual recommendations. Due to the time critical nature of trading, brokerage fees, and the activity of other subscribers, there is no guarantee that subscribers will mirror the performance of the service. Performance numbers shown are based on trades subscribers could enter based on the trade alerts. Altos Trading, LLC assumes no responsibility for any losses incurred by any individual or entity as a result of trade alerts or strategies taught through courses or coaching services. 7154 W State Street
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