Trading The SPY? Use This Simple Momentum Trick

[] The Federal Reserve raised interest rates on Thursday, which drove the market much lower. Investors and traders should use the RSI to find good buys. [View in browser]( . The Federal Reserve raised interest rates on Thursday, which drove the market much lower. Investors and traders should use the RSI to find good buys. [View in browser]( . . [] [Havens Investment Letter] [] [Havens Investment Letter] [] [] [] 70% Win Rate Trading the Crown Jewel of Tech Stocks That is the power of the remarkable system that California tech genius Micah Lamar calls "the Perfect Apple Trade." Recently, he even identified a 30% on AAPL over four days, even while the S&P 500 tanked. [See this incredible system in action here]( [] --------------------------------------------------------------- [] 70% Win Rate Trading the Crown Jewel of Tech Stocks That is the power of the remarkable system that California tech genius Micah Lamar calls "the Perfect Apple Trade." Recently, he even identified a 30% on AAPL over four days, even while the S&P 500 tanked. [See this incredible system in action here]( [] --------------------------------------------------------------- [] [] Trading The SPY? Use This Simple Momentum Trick [Garrett Pic] Dear Investor, Market momentum is Red. Cash remains your best option… as I’ll explain… Today, the markets took another nosedive after attempting to adjust to the Federal Reserve’s 75-point rate hike for June. The markets have already largely priced in another 75-point hike for July. However, speculation now exists that the Fed might only cut in July by 50 basis points due to concerns about a slowdown in the U.S. economy. Consumers are cutting back on spending. Businesses are laying off workers. And the Atlanta Fed Bank cut its GDP forecast for the second quarter to 0.0%. We are likely in a “technical” recession, and the odds of a deeper dive into 2023 are increasing by the day. I don’t think the Fed can control inflation without the help of Congress or the White House. However, we are not prioritizing supply-side solutions like business tax cuts or slashing regulations (particularly on the environmental side) to streamline more oil-and-gas production and more refinery capacity. The Fed will go it alone. And it will deliver a sledgehammer to the markets in the process because of inflationary spending by the government. The Biden administration has planned a $5 trillion budget on top of $3.5 trillion in taxes in 2023. That spending gap of $1.5 trillion is inflationary by default, and the Fed must combat that pressure. With all this in mind, I remind you that the stock market is not the economy… And the economy is not the stock market. So, while all this bad economic news continues, the market might pop in the coming days for a few reasons. Here’s what I want you to watch. Overbought and Oversold Today was one of the worst days I’ve seen for the market in a long time. The reason: Not only was momentum negative, but buying pressure was also effectively non-existent. The S&P 500 had zero companies jumping by 5% or more. Yet 142 companies – or roughly 28% of the entire index – fell more than 5% on the day. Meanwhile, in the broad market of 6,150 stocks – just three hit 52-week highs. Exactly 1,516 hit new 52-week lows. This truly is the great deflation of the equity bubble of the last three years. While this selloff continues, I want you to watch one key number. The Relative Strength Index (RSI). This momentum indicator is a simple tool to define overbought and oversold levels based on price. While I also use the Money Flow Index (MFI) and the MACD 12, 26, and 9 as momentum tools, the RSI is a good starting place for people learning how to trade on momentum. The RSI is defined by a range of 0 to 100. When a stock, exchange-traded fund (ETF), or other index-based asset’s RSI goes above 70, the stock is considered “overbought.” At this time, many traders might look to short the asset or take profits off the table. If the RSI is under 30, that asset is considered “oversold.” At that point, short-sellers may look to buy back the stock, put options traders close positions, and investors might look to buy the stock on “the dip.” For the S&P 500, I think you should watch the RSI of the SPDR S&P 500 ETF Trust (SPY) from a volume and price momentum level. Typically, when the RSI of the SPY dances around the 30 level, it precedes a short-term pop. This can be a combination of short-covering and people buying the dip. The SPY’s reading is sitting at 31.2, just shy of oversold territory. If, by chance, we see a rally start on Friday, don’t be afraid to day trade for a move higher. With that in mind, remember that momentum is negative, and the lack of buying should concern investors and traders alike. It will take time for momentum to get back into the green. Of course, today’s lack of buying signals that the markets don’t believe that the Fed can just raise interest rates without causing problems elsewhere. As I’ve noted, the Fed hasn’t aggressively raised rates in the past without helping to fuel a crisis somewhere else on the planet (or here in the United States). So at this moment, cash remains in a stable position. In Conclusion There are multiple momentum tools that you can use to help best identify exit and entry points. In addition, you should learn more about the best ways to trade in a bear market and negative momentum. I’ll be discussing both issues at length in the weeks ahead. For now, continue to exercise caution, and remember that you can build positions for the long haul. So many fortunes were made in a bear market. It’s time to build yours. Enjoy your day, [Garrett Sig] Garrett {NAME} Chief Analyst, American Markets [] --------------------------------------------------------------- [] [] Trading The SPY? Use This Simple Momentum Trick [Garrett Pic] Dear Investor, Market momentum is Red. Cash remains your best option… as I’ll explain… Today, the markets took another nosedive after attempting to adjust to the Federal Reserve’s 75-point rate hike for June. The markets have already largely priced in another 75-point hike for July. However, speculation now exists that the Fed might only cut in July by 50 basis points due to concerns about a slowdown in the U.S. economy. Consumers are cutting back on spending. Businesses are laying off workers. And the Atlanta Fed Bank cut its GDP forecast for the second quarter to 0.0%. We are likely in a “technical” recession, and the odds of a deeper dive into 2023 are increasing by the day. I don’t think the Fed can control inflation without the help of Congress or the White House. However, we are not prioritizing supply-side solutions like business tax cuts or slashing regulations (particularly on the environmental side) to streamline more oil-and-gas production and more refinery capacity. The Fed will go it alone. And it will deliver a sledgehammer to the markets in the process because of inflationary spending by the government. The Biden administration has planned a $5 trillion budget on top of $3.5 trillion in taxes in 2023. That spending gap of $1.5 trillion is inflationary by default, and the Fed must combat that pressure. With all this in mind, I remind you that the stock market is not the economy… And the economy is not the stock market. So, while all this bad economic news continues, the market might pop in the coming days for a few reasons. Here’s what I want you to watch. Overbought and Oversold Today was one of the worst days I’ve seen for the market in a long time. The reason: Not only was momentum negative, but buying pressure was also effectively non-existent. The S&P 500 had zero companies jumping by 5% or more. Yet 142 companies – or roughly 28% of the entire index – fell more than 5% on the day. Meanwhile, in the broad market of 6,150 stocks – just three hit 52-week highs. Exactly 1,516 hit new 52-week lows. This truly is the great deflation of the equity bubble of the last three years. While this selloff continues, I want you to watch one key number. The Relative Strength Index (RSI). This momentum indicator is a simple tool to define overbought and oversold levels based on price. While I also use the Money Flow Index (MFI) and the MACD 12, 26, and 9 as momentum tools, the RSI is a good starting place for people learning how to trade on momentum. The RSI is defined by a range of 0 to 100. When a stock, exchange-traded fund (ETF), or other index-based asset’s RSI goes above 70, the stock is considered “overbought.” At this time, many traders might look to short the asset or take profits off the table. If the RSI is under 30, that asset is considered “oversold.” At that point, short-sellers may look to buy back the stock, put options traders close positions, and investors might look to buy the stock on “the dip.” For the S&P 500, I think you should watch the RSI of the SPDR S&P 500 ETF Trust (SPY) from a volume and price momentum level. Typically, when the RSI of the SPY dances around the 30 level, it precedes a short-term pop. This can be a combination of short-covering and people buying the dip. The SPY’s reading is sitting at 31.2, just shy of oversold territory. If, by chance, we see a rally start on Friday, don’t be afraid to day trade for a move higher. With that in mind, remember that momentum is negative, and the lack of buying should concern investors and traders alike. It will take time for momentum to get back into the green. Of course, today’s lack of buying signals that the markets don’t believe that the Fed can just raise interest rates without causing problems elsewhere. As I’ve noted, the Fed hasn’t aggressively raised rates in the past without helping to fuel a crisis somewhere else on the planet (or here in the United States). So at this moment, cash remains in a stable position. In Conclusion There are multiple momentum tools that you can use to help best identify exit and entry points. In addition, you should learn more about the best ways to trade in a bear market and negative momentum. I’ll be discussing both issues at length in the weeks ahead. For now, continue to exercise caution, and remember that you can build positions for the long haul. So many fortunes were made in a bear market. It’s time to build yours. Enjoy your day, [Garrett Sig] Garrett {NAME} Chief Analyst, American Markets --------------------------------------------------------------- [] "NO MORE Altcoins" Crypto Workshop [jeffry alt coin]( [Heed this top crypto trader's warning!]( --------------------------------------------------------------- [] [] "NO MORE Altcoins" Crypto Workshop [jeffry alt coin]( [Heed this top crypto trader's warning!]( --------------------------------------------------------------- [] [] [] “NO MORE Altcoins” Crypto Workshop Jeffry Turnmire wants to give you a dire crypto warning: [>> “STOP Buying Altcoins!” <<]( This BTC miner and crypto enthusiast is sharing why this common crypto strategy can be a huge minefield. But, he’s got a higher-probability strategy that he’s wants to share... 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DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: {EMAIL} [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States [] © 2022 Godesburg Financial Publishing, Inc. DISCLAIMER: COMMUNICATIONS FROM GODESBURG FINANCIAL PUBLISHING (GFP) ARE FOR EDUCATIONAL AND INFORMATIONAL PURPOSES ONLY – NOT INVESTMENT ADVICE: GFP and all the services it offers are for educational and informational purposes only and should NOT be understood to be securities-related offers or solicitations. None of GFP’s communications should be considered or used as personalized investment advice. GFP recommends that you speak with a licensed professional before making any investment decision. RESULTS PRESENTED ARE NOT NECCESSARILY TYPICAL OR VERIFIED: GFP communications may include information regarding the historical trading performance of gurus in their services (all verified by a third party), as well as testimonials of non-employees depicting profitable investments and trades that are believed to be true based on the representations of the persons providing the testimonial of their own free will. Please be aware that the claims regarding investing or trading results of non-employees are not tracked by GFP nor can they be verified. As always, past performance is not necessarily indicative of future results. Therefore, results presented in this email should NOT be considered TYPICAL. Actual results can and will vary based on everything from experience, ability, risk mitigation practices, and market volatility... to the amount of money exposed in the investment or trade. Investing and trading are speculative and carry serious risk. You may lose some, all - or possibly more - than your original investment or trade. GODESBURG FINANCIAL PUBLISHING IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER: GFP, including its owners and employees, are NOT registered as securities broker-dealers, brokers, or any sort of registered investment advisors with the U.S. Securities and Exchange Commission, any state securities regulatory authorities, or any self-regulatory organizations. GODESBURG FINANCIAL PUBLISHING EMPLOYEES MAY HOLD SECURITIES DISCUSSED: If a writer holds any securities in a communication, it will be disclosed along with the information on the potential investment or trade. HIR, its owners or employees, have not been - or ever will be - paid by the issuer of a security mentioned in our services or communications. GFP, its owners and employees are paid entirely or in part from commissions based on sales of their services to subscribers. For more information, please visit [our disclaimer page here.]( Sent to: {EMAIL} [Unsubscribe]( Godesburg Financial Publishing Inc., 251 Little Falls Drive, Wilmington, DE 19808, United States