Ways to Spot Short-, Medium-, and Long-Term Trades

You are receiving this email because you signed up to receive emails from True Market Insiders, rebranding to Sector Edge. [Unsubscribe here]( Keep the emails you value from falling into your spam folder. [Whitelist True Market Insiders](. Forgot your login information? Click [here](. [Image] Weekly Market Update Today is Feb. 5, 2022 Hey TMI Subscriber, It was an awfully noisy week on Wall Street with earnings announcements, the capture of an ISIS terrorist in Syria, growing tensions between Russia and the US, and the anticipation of rising interest rates. The best way to drown out all that static is to focus on what’s actually happening in the market. And the place to start focusing is on the [New York Stock Exchange Bullish Percentage Index (NYSE BPI)](. This is free to subscribers of TMI, but on our premium sector research platform, Sector Prophets Pro, you have access to the BPI charts for all the other major market indices as well. You also have access to the BPI charts for all 45 sectors that make up our investing universe. While the NYSE BPI isn’t meant to dictate if you should buy or sell (and it’s not a device for timing the market)... It is a great barometer of risk and will tell you whether to play offense or defense. Here’s what it’s saying today. As you can see below, on Feb. 1 the NYSE BPI flipped from an O-column (bearish) to an X-column (bullish). Less than two weeks ago, following a 21-day stay in X’s, the NYSE BPI flipped to O’s. But then, just 12 days after that (following three days of market gains) the chart flipped again into X’s. In other words, volatility is rearing its ugly head just like it did last year. This tells us that longer-term, risk is to the downside. But this latest reversal into X’s also shows us that, short-term, risk is to the upside. If you consider yourself a long-term investor, that is, if you measure your trading horizon in months to years, you should still be playing defense because the primary trend of the market is down. You can also use sector breadth to determine risk. Sectors can move contrary to the broader market, so it’s worth exploring individual industry groups as well. To see what sectors are bullish or bearish, take a look at the image below. This is the view of the US Industry Bell Curve during trading on Thursday. The Bell Curve is one of the premium tools you get with Sector Prophets Pro. It shows the breadth of the market at a glance. Red boxes indicate sectors where Supply (the bears) is in control, and the blue ones show sectors where Demand (the bulls) is in control. Twenty-seven sectors are in blue, while 18 are in red. Let’s focus on the Oil Service sector for this exercise. If you’re an intermediate-term trader (weeks to months), you can consult the %30-Week Moving Average. This shows the percentage of stocks within a given universe that are trading above their 30-week (or 150-day) moving average. Check out where stocks in the Oil Service sector stand with respect to their 30-week MA. The chart is in a rising column of X’s and on a Buy signal. So, if you’re a medium-term trader, this shows you the sector is strong. From there, you can drill down even further using our SPP tools and find the strongest individual stocks and ETFs within the Oil Services. And as you can see from the chart below, this is an example of a Sector good for an intermediate trade. As for short-term trades, you’ll want to focus on the %10 Week Moving Average (which is also in a rising column of X’s). This is the most sensitive of the breadth indicators. Stocks and sectors will move above or below this shorter-term indicator ahead of a move in their 30-week MAs and BPIs. With so much volatility in today’s market, we’re seeing big daily moves on the upside and downside so it’s best to consult other indicators as well. One way to anticipate a short-term move is to look for sector groups reaching washed out (oversold) levels (below 30% on the 10-week MA charts). Energy Other, below, is an example. This is worth paying attention to because, when the market or a sector is that oversold, it can spring back up quickly. There you have it. Ways to gauge short-, intermediate- and long-term trading opportunities. Finally, if you’re not familiar with the indicator we use to spot big money moves in options and how to profit from the knowledge, [get more details by clicking here](. Now, enjoy the most recent TMI articles. This Week in True Market Insider Jan. 31 - Feb. 4, 2022 [Micro-Cap Monday: That Time I Acted Like A D*ck - Bill Spencer]( Some people believe that technical analysis refers to constellations lining up in the right place, at the right time in the sky. Bill Spencer wants you to know that TA has nothing to do with astrology and [everything about pinpointing market trends](. [Technical Tuesday: The Perfect Setup - How Stocks Are “Rhyming” Right Now — Chris Rowe]( On one hand, Chris Rowe warns that there’s still plenty of downside potential in the market. On the other hand, if you stay two steps ahead, you’ll find plenty of investment opportunities even in this volatile market. [See which sector he’s eying today](. [Profit from the Lessons of a Legendary Trader — Tim Fortier]( Back in the 1950s, Nicholas Darvas turned a gift of $10,000 into $2 million in 18 months. The method he used became known as the Darvas Box, and Tim Fortier shows you how to use this same approach to [score your own profits.]( [Here’s a Slick Way to Make High Oil Prices Work in Your Favor— Costas Bocelli]( With analysts calling for $100+ per barrel for crude oil, one company Costas Bocelli likes could be a [diamond in the rough]( in the traditional energy sector in 2022. [Tailwinds Pushing Banks, This ETF Higher — Karen Riccio]( With rising interest rates, and a big shift toward digitization that may result in higher profit margins, the time is right to invest in the Banks sector. Find out which [ETF Karen Riccio likes for this climate](. Related Articles [Kohl's, target of activist investors, gets a buyout offer]( [Microsoft makes a big bet that it can fix Activision Blizzard's troubled culture]( [2022 power and utilities industry outlook]( [Cash Parking Choices: A Look At SHY And Alternatives]( [The inside story of how ETFs weathered the March 2020 storm]( Copyright © 2021 True Market Insiders, All rights reserved. Our mailing address is: 7901 4th St. N STE 6113 St. Petersburg, FL 33702 Want to change how you receive these emails? You can [change your preferences here]( DISCLAIMER The information contained herein has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (express or implied) or information in this material without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. True Market Insiders LLC is not an investment advisor and is not licensed to give specific financial advice. The chairman of True Market Insiders, Chris Rowe, is also the CEO, CIO and owner of Rowe Wealth Management LLC, which is not owned by and is not the owner of True Market Insiders. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources believed to be reliable (“information providers”). However, such information has not been verified by True Market Insiders or the information provider and TMM and the information providers make no representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein. TMM and the information provider accept no liability to the recipient whatsoever whether in contract, in tort, for negligence, or otherwise for any direct, indirect, consequential, or special loss of any kind arising out of the use of this document or its contents or of the recipient relying on any such recommendation or information (except insofar as any statutory liability cannot be excluded). Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities, commodities or exchange traded products. This document does not purport to be complete description of the securities or commodities, markets or developments to which reference is made. Unless otherwise stated, performance numbers are based on pure price returns, not inclusive of dividends, fees, or other expenses. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. You should consider this strategy’s investment objectives, risks, charges and expenses before investing. The examples and information presented do not take into consideration commissions, tax implications, or other transaction costs. The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Some performance information presented is the result of back-tested performance. Back-tested performance is hypothetical (it does not reflect trading in actual accounts) and is provided for informational purposes to illustrate the effects of the True Market Insiders LLC strategy during a specific period. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative Strength is a measure of price momentum based on historical price activity. Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon. Back-tested performance results have certain limitations. Such results do not represent the impact of material economic and market factors might have on an investor’s decision making process if the investors were actually managing money. Back-testing performance also differs from actual performance because it is achieved through retroactive application of a model investment methodology designed with the benefit of hindsight. True Market Insiders believes the data used in the testing to be from credible, reliable sources, however; True Market Insiders makes no representation or warranties of any kind as to the accuracy of such data. All available data representing the full platform of investment options is used for testing purposes.