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Dear trader,
The question on nearly every traderâs mind right now is⦠Has the market found a bottom?
Analysts over at Goldman Sachs believe that S&P will finish the year strong by closing things out 19% above where it sits right now.
It all depends on a variety of factors, though.
That includes whether the spread of the virus begins to slow, whether the Fed and congress take enough action to support the U.S. economy, and whether investor sentiment becomes more positive.
But here at RagingBull, we donât try to call long-term tops and bottoms. After all, anything could happen over the next few months.
What we can do, however, is do our best to gauge whether or not things have leveled out in the short term.
Last week, one of our pro traders was a perfect example of this approach.
Nate Bear Found a Temporary Bottom and Scored Two 150% and 250% Wins
Last Monday morning, Nate got his Weekly Money Multiplier members up to speed on his view of the markets.
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Rather than getting bogged down by long-term predictions about the market movement, Nate did two things that were critical to his success during the week:
1. He shortened his time frame
2. He focused on only his best setups
With those two things in mind, he put two of his best trade ideas into play and was successful.
Nate took a big winner on DAL for 150% and SPCE for 250%.
He alerted his subscribers last Tuesday, the very next day, that it was a good time to exit those trades...
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Nate proved here that being patient with his setups and not getting too greedy is key to being successful in these market conditions.
Have a look at the setups for these two trades:
DAL:
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Nate based this trade on an oversold chart and a catalyst. He felt that DAL would do better than the overall market due to specific circumstances.
His idea was that when congress got the stimulus bill passed, it would include a bailout for the airlines and this would cause at least temporarily pop the stock.
He didnât think it was outrageous that it could happen within the week, and it wasnât. His position soared 150%.
SPCE:
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For this SPCE trade, Nate relied on his bread and butter TPS setup.
If you arenât familiar with Nateâs work already, TPS stands for trend, pattern, and squeeze.
In the image above, the yellow arrow represents the trend. Itâs where a stock has started to gain momentum and offers the possibility of a continuation.
The orange line represents a pattern of consolidation where the stock is getting primed for a breakout to new highs.
And the orange box around the bars shows that a squeeze is about to take place.
Weâre talking about a short squeeze.
A short squeeze occurs when a large number of shorts in a stock are forced to cover their position because the stock is trading higher.
The combination of longs trying to get in and shorts buying to close out creates immense buying pressure that pushes stocks to âsqueeze higher.â
With this in mind, Nathan believes that stocks with high short interest are some of the best to play, which was exactly the case with SPCE.
Want to see one of Nathanâs LIVE breakdowns of a TPS setup?
Nathan puts on TPS setups every week through his LottoX service.
It made him $1.3 million dollars last year...
And Itâs so powerful, our RagingBull co-founder, Jason Bond, is now applying it to his trading.
Nathan goes for 100% or more in these LottoX trades â and while he doesnât always take those gains, he sometimes makes 600, 700, and 800+ percent.
Just watch the video below to see an example of how Nathan put these trades into action.
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Not ready to join Nathanâs LottoX for the annual or unlimited period?
For a limited time, Nathan is running [a quarterly offer for LottoX.](
That means heâs allowing you to [try out his service for just 3 months]( so you donât have to pay for a minimum of one whole year.
[Get your quarterly offer here.](
Kyle wisely decided not to get too greedy on this trade and was able to pull off a great W the very next day.
Many of Kyleâs subscribers took a great win on this play as wellâ¦
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To your success,
The RagingBull.com Team
RagingBull, LLC
62 Calef Hwy. #233, Lee, NH 03861
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