A Quick Evening Update on Momentum

Today's Watchlist: IWM, NVDA, CHPT, ALB, NUE, MGM, WYNN, LVS [Image](   [ARCHIVES]( LIVE]( [Twitter]( [Youtube]( [Instagram]( [Tiktok]( [Discord]( [LinkedIn]( [Biden’s 30X30 Wealth Grab]( Three of the richest men in America have teamed up with the President on a little-known bill called 30X30… a bill that is actively swindling you and the rest of America out of millions. On February 22, Shah Gilani is putting an end to this rig. [Be there.](   February 21, 2023 Dear Reader Good Evening, The markets experienced a selloff today, and I wanted to update you on where we stand for momentum. As always, we keep a close eye on the number of stocks [breaking out versus those breaking down]( in unique fashions. We also take into account [several other indicators]( to better understand the market's direction, which is currently YELLOW, albeit likely red once the market is closed and I have a chance to look at the data. I'll be looking for confirmation of a negative switch this evening, and we'll likely start shorting things with more frequency tomorrow at Flashpoint Trader. ([click here to join risk-free]( People are curious about how far the market can drop, but first, let's look at the underlying issues. James Bullard commented that a 50 basis point hike might be in store for the Fed’s March meeting, which could make the market go down considerably and quickly. All risk assets, including crypto and companies trading at more than ten times sales, will be hit hard if the Fed Funds Rate rises to 5.4% as the market is still pricing in rate cuts for 2023. It seems logical to expect another 10-point drop on the IWM, followed by a potential squeeze, then another selloff that may take us to new lows. Chargepoint (CHPT), with a 6% move today, is starting to sell off significantly. The stock went from $20 to $8 in 3.5 weeks in April. The company is unprofitable, has a price-to-sales ratio over 11, and has a massive short float that has increased year over year. Additionally, most of the shorts have been squeezed out over the last few weeks. When institutional investors begin to exit, the retail investors' reaction is the next thing to watch out for. The difference between retail and institutional investors is that retail panics easily, and their sell-offs are less structured. The S&P 500 has started to move into a negative momentum event, and the selloff is happening in a structured pattern, avoiding the buy-the-dip crowd. This looks like ETFs dropping passive investment types, which may result in some level of crowding into mega-cap names like Apple, Microsoft, and Meta. Remember, as Apple bleeds off today, 403 ETFs have the stock in their fund. If Apple continues to sell off, those funds must start selling assets to keep their concentration in order. So, this could go wrong relatively quickly. Looking at momentum from a daily perspective, the RSI, MACD, MFI, and ADX all indicate a negative trend. Mike Wilson at Morgan Stanley says that stocks are in a death zone. This means that they are at the top of Mount Everest and running out of oxygen. These companies are moving much faster than justified by their price-to-earnings ratios. Retail investors will likely panic soon and start dumping positions, resulting in short-term outflows. If you want an excellent list of companies to target when momentum turns negative, [check out our negative hyperturn list]( at Hyper Momentum Trader. There may be some bottom bidding and squeezing in the days to come, so if you are going net short, make sure to keep some stops in place. And in the meantime, I’ll continue monitoring momentum and keep you updated with any developments. Talk Soon! Garrett {NAME}   IMPROVING SECTORS: Not a Dang Thang   WEAKENING SECTORS: Everything   WATCHLIST: IWM, NVDA, CHPT, ALB, NUE, MGM, WYNN, LVS   [YouTube]( Did you miss the show? No worries, we’ve got you covered.   [“You’ve Been Duped!”]( Wall Street wants you to trade like everyone else. But they’re secretly using this “No Money Down” trading technique that pays you instant cash – guaranteed! This 30-year trading veteran wants to show you how it works… [Click here to join his 4 Days to $400 Challenge]( REPORTS   [Welcome to Momentum]( [Trading Momentum]( [Trading Fundamentals]( [Trading the Fed]( [Trading Insiders]( WATCH REPLAYS   [Only 38 cents to Get In]( This is a top AI trade of 2023 [See why here:]( [Watch the Show!]( [Sneak A Peek Inside Flashpoint Trader](   You are receiving this e-mail at {EMAIL}, as part of your subscription to Midday Momentum. To remove your email from this list: [unsubscribe here]( Please do not reply to this email as this address is not monitored. 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