Market Milestones: The Traders Plan Weekly Review

[Image] Good morning , Look out team, the bulls are on parade. I know I started this email with that exact line last week. It's a new email though, I promise. I say it again because the parade never stopped. The bulls have been drinking Red Bull all night and day, buying every dip, marching through trend lines, propelling RSI to levels not seen in months and pushing the SPY within 1% of the average yearly return of the S&P 500. This is what we get from a market where tons of traders are short, there is tons of cash on the sidelines and everyone starts to get FOMO. All this to say, now is probably not the best time to buy. Wait for some dips, be patient and let the trades come to you. Golden Cross The famous golden cross has just occurred on the SPY. What that means is the 50Dsma has crossed bullish above the 200Dsma. Let's look at some previous golden crosses and see what happened. The most recent occurrence was on July 8th, 2020. We rose 50% to a new high before the year long 2022 sell off. If you sold when the death cross happened, the opposite of the golden cross, you would have captured a 32% gain over that period. The golden cross before that occurred on March 29th, 2019. This one led to a 18% rally to the peak before Covid. These numbers all assume you call the top, which you won't. If you are buying the golden cross and selling the death cross then you only made 5% over this 15 month time frame. The next one happened on April 16th, 2016 and led to a scorching 41% rally to the highs before the death cross happened. If you bought the GC and sold the DC you still would have made 32% over a 2.5 year period which is nothing to scoff at. We got a false signal on December 18th, 2015 which would have led to a 6% loss if you got out on the soon to follow death cross. As long as you took the next signal, things worked out just fine for you. The next golden cross happened on January 31st, 2012 and was another epic buy signal. This time it led to a 60% run to its peak and a 48% return until the next death cross. We could go on all day like this and turn this email into a full length book, I won't, but we could. The main point is that often times once these particular moving averages cross each other, the bottom has come in and there is still plenty of room to the upside. Put these two moving averages on your chart and take a trip back in time to get more perspective on this fancily named moving average crossover. [2020 Golden Cross]( [2019 Golden Cross]( [2016 Golden Cross]( [2015 Golden Cross]( [2012 Golden Cross]( ETF of the Week Our ETF of the week this week is Global X Robotics & Artificial Intelligence ETF (BOTZ). You can find more about BOTZ [here](. BOTZ like most of the market ETF and many of the stock out there is trying to put in an inverse head and shoulders pattern. This one could be an interesting play with all the recent hype about Chat GPT, OpenAI, and artificial intelligence in general. Just like everything else right now, trying to snag it on a dip looks like the play. If we can get it on a nice dip, there looks to be a good amount of upside potential on this one. [BOTZ Weekly Chart]( [BOTZ Daily Chart]( Trade with a PLAN! Sincerely, The Traders Plan Team support@thetradersplan.com Disclosure: You are responsible for your own trading decisions. ALWAYS, do your own research before investing in any of the above securities. This is not a solicitation to buy/sell ETFs or securities. NEVER invest money in ETFs or stocks that you can't afford to lose. You can lose all of your capital by trading any securities mentioned. These ETFs/securities are very volatile and gain and lose value quickly. We reserve the right to freely trade in any mentioned ETFs or securities. We are not compensated by any mentioned companies. We trade ETFs and securities based on our opinion of intrinsic/possible future value only. We are not registered investment advisors, so always do your own research before buying any securities. Unable to view? Read it [online]( If you no longer wish to receive mail from us, you can [unsubscribe]( Sent from: Real Life Trading in Nashville TN 37221