Why This Market Compression Means a Big Move

It has caught my eye. [Jeff Clark's Market Minute]( Why This Market Compression Means a Big Move By Imre Gams, analyst, Market Minute Over the weekend, an unexpected price chart caught my eye… I’m talking about the iShares U.S. Aerospace & Defense ETF (ITA). According to iShares.com, ITA provides investors exposure to U.S. companies that manufacture commercial and military aircraft and other defense equipment. Among the ETF’s top holdings are stocks like Raytheon (RTX), Lockheed Martin Corp (LMT), and Boeing (BA)… (If you’d like more information on this ETF, [here is a link to the iShares website]( Recommended Link [Invest Directly In The NEXT Generation of Tech Giants – BEFORE They Go Public]( [image]( Millionaire Teeka Tiwari called Apple in 2003... 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But first, let’s look at the price chart to see the setup I’m talking about… [chart] [(Click here to expand image)]( There are two key features I’ve highlighted on this price chart: - This is the prior all-time high at 119.90 from February 2020 (horizontal red line). This price level is my expected upside target on this technical setup. - The second feature are the three moving averages – the 20, 50, and 200-period moving averages (MA – blue, red, and green squiggly lines). And now, they’re completing one of my favorite technical patterns that I call moving average compression. This kind of compression occurs when prices trade sideways for an extended time. Then, all the moving averages will clump together and go flat. That’s what’s happened since the start of 2022. But what’s more exciting is what the pattern tells us about what’s next… Let me explain further... Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. I love this pattern because it almost always results in a big move. When the moving averages compress, it’s like the market becomes a coiled spring… ready to explode and release all that energy immediately. And it looks like that moment has finally arrived… [‘Failure to Comply’ – Are You Next to be Banned?]( You can see how prices have recently shot higher and started to distance themselves from the moving averages. The momentum that’s built up over the last few months of sideways trading should be enough to get the ETF back to its all-time high. And I’m going to keep a close eye on it. Happy Trading, Imre Gams Analyst, Market Minute Reader Mailbag In today’s mailbag, Jeff Clark Trader member Daniel thanks Jeff… Hello Jeff, it was by sheer luck that I opened the referral email from "Breakthrough Investor" with your interview on the One Stock Retirement. I'm retired with only a small amount of money to invest, but I do have time to spend (life can be boring, as you said, in retirement). There’s so much advice… my inbox is overloaded with comments and more than I can process. Your approach is so refreshing, sensible, intelligent, and practical for the average person like me who doesn’t wish to become a fulltime investor but realizes that sitting on the sidelines doesn't make sense either. And playing it safe really won't get me anywhere before I die. I’m anxiously beginning to study your training, which on its face seems very right. I hope my first impression of your motivation, skill, and intelligent approach proves to be real. I believe in leading, observing, volunteering, and encouraging and I’m anxious to see if you’re exemplary of this. You certainly seem to be. Thank you for being a leader who has observed and learned for years and is now volunteering your assistance, training, and expertise as you encourage the rest of us with hope. – Daniel M. And Market Minute subscriber Mercy shares her thoughts on financial freedom… I’ve always been very afraid of retiring "poor." Your story is extremely encouraging and the promise of the possibility of financial freedom and a “relaxed” retirement makes it even better. Best wishes! – Mercy N. Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… [Opportunity Announcement]( What does a chip shortage mean for investors? And where are the opportunities? 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