SPY on the Market: Markets Like Stability

You are receiving this email because you signed up to receive our free e-letter DayTradeSPY's SPY on the Market, or you purchased a product or service from its publisher, Eagle Financial Publications. [SPY-on-the-market-banner-1200] [Trading Room]( [Pick of the Day]( [Inner Circle]( [Ultimate Trading Workshop]( [SPY Signal]( SPY on the Market: Markets Like Stability by Hugh Grossman and Ahren Stephens 07/18/2024 SPONSORED CONTENT [I Can’t Believe A Ticker Like This Exists]( Years ago, I came across a stock market ticker… One that has been my “edge” ever since… I trade it over and over again, every week… And thanks to this one ticker, I hit on 93.6% of my trades in 2023. [Here’s how you can too.]( Markets can handle good news and even bad news. What the stock market abhors is instability. Investors can deal with the status quo; they loathe change. An example is the surprise left-wing coalition surge in the recent election in France that blocked Marine LePen’s quest to bring her far-right party, National Rally, to power in the National Assembly. As a result, French stocks turned higher. Why? Because no single group secured a working majority. That means that likely not much will get changed. Closer to home, after the Trump/Biden debate, the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) dropped a bit until the mainstream media recognized Biden’s alleged debate loss and accepted a probable Trump win, suggesting his presidency would be good for the market. Even if Biden were to be reelected, we may well see a divided government, which all but assures not much gets done on this side of the pond either, hence a rising stock market. Analysts uncovered three divided-government outcomes with a statistically significant relationship to market performance. The following two scenarios corresponded to positive absolute returns in excess of long-term average results: a) Democratic control of the White House with full Republican control of Congress, and b) Democratic control of the White House with split party control of the Senate and House. The one, albeit unlikely, scenario that corresponded to modestly below long-term averages is a Republican control of the White House with a full Democratic control of Congress. [One options strategy. 10 minutes to set up. 94% win rate]( Is there a simpler way – a faster way – and a more lucrative way to trade options? If so, I’ve yet to see it. For those who’ve traded a call or put option before, this system is... Simple: Open an email. Fast: Enter the options symbol into a trading account. Place the trade shortly after the opening bell. Lucrative: I’ve hit on 94% of my trades with it. [Click here for more info.]( In general, markets respond to possible individual and corporate tax policies and spending priorities, especially in energy. Potential changes in infrastructure and defense, future programs such as Social Security, Medicare, Medicaid and health care, including the future of the Affordable Care Act, will also influence markets. Investors are concerned about regulations, immigration policy, geopolitical conflicts and China, including the potential for additional tariffs. The likelihood of changes in these areas will affect market prices. These days, markets are highly sensitive to the future of interest rates in the near term, as evidenced by Fed Chair Powell’s recent testimony of strengthening confidence that inflation is moving sustainably toward 2%. With his testimony, SPY continued to hit record highs. He even mentioned that inflation need not actually hit the 2% mark for him to consider lowering interest rates. This comment shot SPY up several points, instilling even more confidence. How does all this affect day trading SPY options? Even as we determine short-term trends, we still like to keep a watchful eye on longer term market direction. I recently consoled a gentleman who had purchased 100 put options “because SPY was at the top of the chart and could only reverse back down.” I really could not decide which argument to attack first, his ignorance of how charts expand to accommodate the price action or his lack of understanding of how fundamentals govern longer-term market trajectories. I explained how, if I was in his shoes, I would seriously think about cutting my losses, even though he was down considerably. This would not even qualify for a repair as the odds were totally against SPY dropping in the time frame he needed it to go. With the imminent election of Trump as the GOP front-runner, markets are feeling the positive vibe and are already positioning for his presidential win. During his previous presidency, the Dow made 126 new highs. To keep perspective, since Election Day, and up until his inauguration day, Biden saw the sharpest gain on record in the S&P 500 of 12.8%. This confirms the theory that markets like to rise in election years. They feel that either winner will lead to some positive move. [It's hot gains season]( Exciting trades are exploding. With Nvidia's record-breaking surge making it the world's most valuable public company, the market is heating up with opportunities. The excitement around A.I.'s potential is creating waves that elite Options traders are riding to big wins. Want to know how top Options traders leverage A.I. for these gains?  Our complimentary live session will reveal the strategies and tools they use to stay ahead. Join over 100,000 traders who have already attended and benefited from this training and [Discover how top Options traders leverage A.I. in July for big wins](. We look at events and conditions such as these in our Trading Room. Securing an overall feel for the market direction and sentiment is critical to success. Then, if SPY counters that direction, we consider it a pullback or retracement, with an eye on the overall orientation, and start looking for the ideal time to enter a position. This is just one of the many things we discuss. Education is important, but acting on that knowledge of fundamentals is key. The longer you spend in the Trading Room, the better trader you will become. A question I often hear is how much knowledge is required to be in the Trading Room. If you know what calls and puts are, you are qualified. [Click here]( for details to subscribe. If you are unsure, [click here]( to join us at 8 p.m., ET, Sunday night for our Introductory Webinar. Sincerely, [Hugh Grossman][Ahren Stephens] Hugh Grossman and Ahren Stephens Editors, [Trading Room]( [Pick of the Day]( [Inner Circle]( and [Signal]( About Hugh and Ahren: [Hugh Grossman]Hugh Grossman has manned the helm of DayTradeSPY for over a decade now. A self-taught trader, who turned master trader, has learned everything about trading the SPY (the SPDR S&P 500 ETF). Hugh has been guiding his subscribers of Inner Circle, Pick of the Day, DayTradeSPY Signal, and the Trading Room to daily profits since 2010. [Ahren Stephens]Ahren Stephens has been studying the markets since his teens. He opened his first trading account at the age of 18 and has studied the stock market, forex market, and commodities markets for more than 20 years. Ahren is a licensed commodity broker, and was most recently an analyst at an award-winning, multi-million-dollar firm. With his knowledge he has been guiding his subscribers of Inner Circle, Pick of the Day, and the Trading Room to daily profits. 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