Steady Income Investments

Jeff Bishop Weekly Money Multiplier Strategy | All Eyes on Powell and The Fed

Well, the markets are trading higher today and rebounding from the August “sell-off”… and all seems to be fine in terms of macros… for now.

Treasury yields are rebounding – stymying fears of a possible recession… and the U.S. agreed to extend its temporary ban on doing business with Chinese telecom giant Huawei.

Not only that, Trump came out and said, “I don’t think we’re having a recession.”

But I’m not playing that he said, Xi said game.

I’m looking for actual data points that could affect the market… ways that can make me money in all this volatility.

You see, we still have some conflicting signals in the market right now… but we’ll get some clarity this week, as we will get the minutes from last month’s Fed meeting – when it cut rates for the first time in a decade.

Not only that, we’ve got the Fed’s annual Jackson Hole Economic Policy Symposium taking place Aug. 22 – 24.

We’ve seen Fed Chair Jerome Powell has moved markets before… and he could move them again this week.

All eyes will be on Powell this week, as he will speak for the first time since the bond markets were sent into a frenzy – sounding the recession siren – which spilled over to stocks.

So what am I looking for specifically in these Fed events and how can we take advantage?

All Eyes on Powell and The Fed

Sure, we’re getting a bounce in the market to kick off the week… but there is one man who can change it all – Powell.

First things first, we’ll get a recap of last month’s Fed meeting… and we should see some language clues that will let us know exactly where the market is headed. Either way, the market is headed, you can use this simple options strategy to potentially double your money, week after week.

We’re still seeing signs of economic strength. After all, inflation and retail sales picked up in July.

However, we’re still in the midst of the U.S. – China trade war… and even though there are signs of optimism, that can all change with a tweet from Trump, or comments from Xi.

With that being said, there is a lot of conflicting data… and that is one of the few reasons that caused all the back and forth action in the market.

The big questions now are how the Fed is going to adapt and what’s the monetary policy going to look like?

If you recall, Powell gave the market what it wanted last month… but it confused the market because the message was muddled. Powell didn’t give the markets too many clues about future rate cuts…

… after the initial pop, we saw markets convulse and sell off into the close on the Fed meeting day.

If you look at the hourly chart in SPY… it looks like the Fed actually sparked all this back and forth action.

Right now, I’m going to be looking closely at this chart, as we’ve got some key levels to watch. The $294 level is going to be a heavily-watched level. We’ve seen SPY try to break back above it three times already.

It’s quite clear the bears aren’t backing down here. I’ll be watching my money pattern and the $294 resistance level very closely, which will allow me to uncover opportunities in this back and forth market.

But where do we go from here?

The one thing that could actually make or break the market right now is the language changes in the Fed Minutes.

We saw a 25 basis point cut, upbeat sentiment about the economy, as well as a confusing press conference.

In the Fed meeting minutes, there are a few scenarios that could happen:

The minutes show that the Fed is leaning more on the dovish side and looking for more rate cuts as an “insurance” policy for the Trade War risks
The Fed remains prepared, but will wait for economic data points before they make any monetary policy moves
The Federal Reserve shocks the market and uses a more hawkish tone – potentially causing the market to sell-off

Some specific language clues include:

“Patient” – We’ve heard the Fed use this word a lot, and we’re going to see if it brings it back into play.
“Transitory”
“Is rising at a moderate rate” – We’ve seen the Fed change this a few times. For example, back in June, the Fed changed its language from “… the economic activity rose at a solid rate” to “… the economic activity is rising at a moderate rate”
“Growth”
“Have been soft”
“Declined”
“Uncertainties” or “risks” about the economic outlook
“The Committee will monitor implications of incoming information”
“Will act as appropriate”
“Mid-cycle adjustment”

This is going to be one of the most important Fed minutes of the year because we will get more details as to how the Fed will make moves during the fourth quarter of 2019 into 2020.

Not only that, we’ve got the Fed’s annual Jackson Hole Economic Symposium, and that is where Powell will speak on the economy, which can give us even more clues as to where rates are headed.

Right now, we’re seeing traders looking for a no-rate-change decision in the Fed’s next monetary policy meeting in September.

Traders are pricing in a 95% chance of no rate changes… and just 5% for a 0.25% basis point cut…

… and it seems like they’re all waiting for what Powell will say this Friday before they make any moves… because as we all know, anyone comment could change the direction of not only the interest rate and bond markets but the stock market as well.

So what can we expect in Powell’s speech?

Is Powell Going to Bend the Knee to the Market?

Federal Reserve Chair Powell will have a lot of material to pull out of his grab bag of topics. On Friday, there is going to a special speech on the challenges for monetary policy right now.

Of course, there are a lot of risks on the table… the Trade War which has sparked a deglobalization shock, low interest rates indicating a potential recession, a massive amount of global debt ($16.7T in negative-yielding bonds).

Not only that, we’ve got some geopolitical tensions going on throughout the world… something the Fed cannot influence whatsoever.

The market has been calling for lower interest rates… and the big question is whether Powell will bend the knee and fold to the market… and actually look for more and bigger rate cuts down the road.

However, it’s not a zero-sum game for the Fed… it’s a lose-lose situation.

If they cut rates when the economy is strong, everyone will know that the Fed has caved in to the pressure from Trump and the market.

On the other hand, if it doesn’t raise rates, it could actually cause the market to crash as traders have been pricing in rate cuts for quite some time now.

We really don’t know what Powell can say or do… but he will likely focus on the different monetary policies in different countries and how they can affect the overall market.

What I do know is that I’ll be looking closely for clues as to whether the Fed will reconsider its interest rate cuts as an “insurance” policy. I’ll also be looking for their comments on external risks… which can cause contagion risk and potentially spark a massive crash.

You’re probably wondering, Jeff, how are you going to play this?

I’m going to stick with my bread-and-butter… something that has worked for me when there are big Fed events.

With SPY, we’re really in no man’s land still. There is a big resistance level at $294… and until we get above that, there is still a risk of the market pulling back to the Death Line… and if Powell says anything “negative”, it could pull the market back to that level.

Not only that, I’ll be watching the iShares 20+ Year Treasury Bond ETF (TLT). Right now, the money pattern is setting up in TLT, and I’ll be watching this very closely.

Why do I just stick to a few names when I’m looking to trade around the Fed?

It simplifies trading for me… and I’ve actually been successful trading these names.

(Want to simplify your trading and lock in winners like these? Bullseye Trades is my highest conviction trade idea delivered to you once a week. The goal is simple– return triple digits and try again next week. Since the launch, every single alert has been a monster winner. And I couldn’t be happier.)

With the Fed having two big events this week… all eyes will be on them this week, as it’ll give us clues as to where the market is headed. No matter what direction the market goes, I’ll be ready to use my alpha-generating strategies.

Source: WeeklyMoneyMultiplier.com | Original Link

Petra Picks PLATINUM | Spot a Trend Change With These 3 Simple Tools

Stocks are set to gap up this morning… but some of the big questions to ask now are:

Do we see the same type of volatility as last week?
Will the uptrend continue or reverse?

With such a long bull market, many people haven’t thought about this… rather, they’ve stuck to the “buy the dip” mentality.

After all, stocks are “always” going up, right?

Well in the long term view, sure.

However, there are a lot of short-term shifts in trends and volatility… and there can be violent moves in either direction.

Your financial advisor lets your money weather the storms and bets on the long term, your 401k is out of your hands.

There is nothing wrong with investing for the long term… but what about all the action in between that time frame?

That, my friend, is where you can take control and profit off short-term trends in your discretionary trading account. This is where the fun is had and big returns are made.

The last thing you want to do is be caught up in the euphoria when everyone is buying – following the herd mentality – and all of a sudden the market cracks and heads lower…

… leaving you stuck holding the bag, trying to figure out how to manage your risk, and whether you should double down – causing you a lot of stress.

However, it doesn’t have to be that way.

What if there was an easy way for you to spot the changes in trends – before they happen – using simple charting tools?

Well, there is… and I am going to share with you three of my surefire ways to spot a trend change, so you can have the same vision as the professionals.

And don’t worry, they are very simple tools and visuals that anyone can use.

Spot a Trend Change With These 3 Simple Tools

With all the back and forth action we’re seeing… it’s time to take a step back and get back to the basics with Trendlines, Moving Average Crosses, and Support and Resistance. It doesn’t take complicated tools or professional analysis to spot trends and changes in trends.

All you need is to do is pull up a chart and overlay some simple indicators. When you do that, you develop a trading strategy that actually works, allowing you to time your entries and exits to near perfection.

1) Trendlines

We all know the trend is your friend. That’s kind of the point of this conversation. We want to stay on the same side of the market as our friend… the trend.

So what’s a trend?

Simply, it’s the direction of a stock or market’s price over a specific period… and you will generally see higher highs and higher lows in an uptrend (lower highs and lower lows in a downtrend).

You can simply look at a chart and see the trend.

Check out the chart below in Weight Waters (WW). It’s very clear that the price is moving up in the first half of the chart, and down in the second half. To help with analysis, I will show you how to draw the trendline… so you can easily see it.

Drawing a trendline – Start at the lowest low and draw a straight line under the lows trying to hit the major higher lows. This is an uptrend… as shown in the chart below.

Once you see a stock break below the uptrend line (the blue line), it lets you know that the stock may be running out of steam and could pull back… and that’s exactly what we saw in WW.

That was easy right?

You can do this on any chart and now you have a good visual of the trend. Let’s take a look at moving average crosses.

2) Moving Average Crossover

One of the most popular trading tools is the moving average… and one that I tend to use a lot.

The best thing about moving average crossovers?

They’re a great way to identify the direction… before it happens.

As you can see in the chart below… the two moving averages are moving up in the direction of the trend.

But we have the trendline for that, so I’m going to share a special way to use the moving average to help us spot when the trend is changing… The Moving Average Cross…

What’s a cross? Simply put, it’s when one moving average crosses over another moving average.

In the chart above I have added 2 popular moving averages.

The 10-period simple moving average (blue line) and the 30-period simple moving average (red line). Being a weekly chart the “period” is weekly. So 10 weeks and 30 weeks – this gives you a long-term view of how the stock has been doing.

You can see during the uptrend, the moving averages have some space in between each other. Generally, you’ll see the short-term moving average above the longer-term moving average (10 is short-term, 30 is long-term).

Now, look at the point where the 10 crosses the 30… this is alerting us to a potential change in the trend…

I say potential because they can cross back and forth if the stock price settles in a range for a while. This is why we use all 3 charting tools to increase your chances of success. Next, let’s look at Support and Resistance.

3) Support and Resistance

Support is an area where demand is higher than supply. Therefore supporting the stock price at that level.

Resistance is an area where supply is higher than demand. Therefore creating a ceiling for the stock price.

Stock prices tend to pause and many times reverse at these levels due to the supply and demand imbalances.

Often times when a stock price breaks one of these levels, it then becomes the opposite.

What I mean by that is when a price breaks through a resistance level, it tends to become a support level as the buyers won out and then created higher demand in that area to keep the stock above where they bought it.

Okay, that’s the basic theory…

… but how do you spot key support and resistance levels?

When you look at a chart, you will notice places where a price goes to and gets stuck many times.

Every time it gets there, it can’t quite make a move past. These are the areas of support and resistance. Support being a price range where the stock has had a tough time breaking below and resistance an area the stock can’t get above.

You can look at the chart below and see how I placed a horizontal line through an area where the price had trouble going through on the way up… and when it did, it showed some support at that same level.

Here we have identified an area of support and resistance.

Putting It All Together

Now I am going to show you the magic that happens when you put them all together.

Let’s look at an example.

Below is the chart we have been looking at this whole time to see each of the tools on its own…

… let’s see what happens when we lay them all on the same chart.

What do you see?

Each one of these tools used together gives us a much clearer picture of the trend, and more importantly, when the trend changes.

I am looking for 3 things here:

Price breaks the trendline
Price breaks through support and holds below
The moving averages cross down

Look at the chart again.

You can see where the price breaks the blue trendline that we easily added to the chart.

Around the same time price goes below the support line, notice that the price goes back above it, but fails to stay above, creating resistance there… next, the 10-week moving average crosses below the 30-week moving average…

Once all 3 of these things happen you can see that momentum has flipped and the trend has changed direction.

And what was a trend again?

The direction of the price, generally with higher highs and higher lows (in an uptrend)…

So one last note for verification on the trend… take a look at the chart below for a closer look at the price action…you will notice that as these 3 things all happen, the higher highs and higher lows turn into lower highs and lower lows, thus changing the direction of the trend and beginning a new downtrend.

With the market pullback, recession talk, and global issues all coming to the front, what is next for stocks?

Is the economy actually fine and do we run higher from here?

You don’t have to be uncertain about the trend or if it has changed… you can use these three tools so you don’t find yourself jumping back and forth not knowing.

It’s quite simple, and right now is a great time to put this to use…

Why?

Well, with the market volatility, many traders go back and forth because they are trying to guess the trend and if it’s changing… you don’t need to be so jumpy. In my Tranquil Trading system, I share all you need to find profitable trades by spotting patterns using three simple lines… which lets you know where to enter, stop-out and take profits.

Source: PetraPicks.com | Original Link

Jeff Bishop Weekly Money Multiplier Strategy | Money-Making Opportunities in This Volatile Environment

It doesn’t matter if you traded currencies, precious metals, bonds, or stocks— it was a wild week of action in the financial markets…many are blaming the trade war as the catalyst… but I’ve been around the block long enough to know it’s never one thing.

And despite the Dow Jones experiencing its fourth-largest loss ever this week… there was plenty of back and forth action… as the SPY, QQQ and the Dow finished down just 0.54%, 0.94%, and 1.53%, on the week.

But that doesn’t tell the full story, so here’s a more detailed rundown:

The Dow dropped 390 points-breaking below a key psychological level (26,000), while the SPY fell through its key level of $290 on Monday– a reaction to bond yields plummeting.
On Tuesday, Trump came out and announced a delay on tariffs for certain Chinese goods until Dec. 15, sending the market higher by over 1.4%
By Wednesday, long-term Treasury yields were hitting record lows… causing the Dow to have its fourth-worst decline in history – will you be ready if stocks crash?
On Thursday, stocks took a breather and finished the day, more or less, flat.
Some dip buyers crawled in on Friday, pushing stocks higher, as the Dow closed up by 1.2% and the S&P 500 finished 1.44% higher.

There are a lot of questions that traders have on their minds right now…

Is all this back and forth price action in the stock market the new normal?
What’s actually going on in the market– and are there any clear patterns that can help us make money during this stretch?
What are the upcoming catalysts for the week and what should you be looking out for?

I attempt to answer those questions, as well as, fill you in on where I’m putting my hard-earned money to work.

One Tweet or Comment Can Make or Break This Market

It’s the weekend… and that’s when the twitter fingers start firing. It seems like almost every weekend for quite some time now, Trump makes some comment about the economy or trade war… and the markets react… or we get a comment from Trump’s frenemy, Chinese President Xi.

Right now, traders are on edge and watching the “he said, Xi said” game very closely.

You see, the thing that really sparked this sell-off was the U.S. looked to slap 10% tariffs on $300B worth of Chinese goods… leading to China devaluing its currency… followed by a drop in bond yields as traders were fearful that the Trade War could cause a recession.

However, that all changed after Trump said the talks with China were “productive”, as well as the delay on the tariffs on some Chinese goods until Dec. 15.

There’s still a lot of back and forth going on… and just because there were some positive comments, it doesn’t mean the sentiment can’t change in a heartbeat… and that’s actually baked into the market currently.

How is it baked in?

Well, we’re neither in a downtrend or uptrend. In fact, we’re still in no man’s land.

Why?

Well, take a look at the daily chart in the SPDR S&P 500 ETF (SPY).

If you look at the chart above, SPY is trading between two key levels right now… $290 and the Death Line at $282. Sure, we’re close to $290, but that’s a resistance level.

You see, at that level, traders may be willing to bet against the market… and if the bears win, it wouldn’t be surprising to see SPY get to the Death Line.

Why is that red line so important?

Well, if we break below that… we could see a sharp move down in the market…

… and one negative comment about the trade war, from either side, could spark that.

Until we see a move above or below those key levels… this choppy market could be the new norm for the short term.

The key here is to wait for a clear move above or below those levels.

However, once we get a clear direction, whether the market runs higher or crashes, I’ll be ready to take advantage using my best setups.

There Are Still Money-Making Opportunities in This Environment

In times like these… the best thing to do is focus on your best setups and trade smaller than normal, as well as having a trade plan and respecting your stops.

Here’s what I mean by that.

When you have stops… you have to respect that. I made sure to make my stop a little bit wider than usual to take into account the volatility. Not only that, I had on a smaller position than I normally would have on. By doing that, you can reduce your risk in markets like these.

When you stick to your plan… your best setups could produce winners like this.

(If you’re looking to make money in this market environment and simplify your trading, you can get my highest-conviction trade idea delivered straight to you through email and text every week. Click here to find out more.)

Even though the market is all over the place, I’m still seeing a lot of opportunities out there… using my alpha-generating strategies

For example, one trade that I made was GOOGL.

GOOGL is looking pretty strong to me at these levels.

Big buybacks were announced, a great business that is outpacing overall economic growth… and we have a great chart pattern, as you can see above.

There’s a nice flag setting up… and generally, the next move from here is higher.

I have a strong thesis and a plan in place… so I’m going to stick to it… and I’m also minimizing my risk.

Now, there’s going to be a lot going on next week… so let’s take a look at some of the upcoming economic catalysts.

We’ve got the Fed minutes on Wednesday… and that should add another degree of volatility to the market as traders will be looking for language clues and more details as to where rate cuts could be headed. This is going to be one of the most important Fed minutes of 2019.

Economic Calendar

Monday, Aug. 19

No Major Economic Data Released

Tuesday, Aug. 20

7:45 AM EST ICSC Weekly Retail Sales
8:55 AM EST Johnson/Redbook Weekly Sales
4:30 PM EST API Weekly Inventory Data

Wednesday, Aug. 21

7:00 AM EST MBA Mortgage Applications Data
10:00 AM EST Existing Home Sales
10:30 AM EST Weekly DOE Inventory Data
2:00 PM EST FOMC Meeting Minutes from the July 30-31st meeting

Thursday, Aug. 22

8:30 AM EST Weekly Jobless Claims
9:45 AM EST Markit US Composite & Services & Manufacturing PMI
10:00 AM EST Leading Index for July
10:30 AM EST Weekly EIA Natural Gas Inventory Data
11:00 AM EST Kansas City Fed Manufacturing Activity

Other Key Economic Catalyst

Annual Federal Reserve Policy Symposium in Jackson Hole, WY

Friday, Aug. 23

10:00 AM EST New Home Sales MoM for July
1:00 PM EST Baker Hughes Weekly Rig Count

Now, we’ve also got some large companies reporting earnings, like Baidu (BIDU), Home Depot (HD), Lowe’s Companies (LOW), and Target (TGT)… which can give us a better idea of how the underlying economy is actually doing.

Earnings Calendar

Note: AC stands for After Market Close, and BO stands for Before Market Open. Implied movement is based on weekly options expiring Friday. The average percentage move after earnings is based on the last 8 earnings, unless otherwise stated.

It’s a tough market out there… and if you’ve been struggling… that’s okay. Now isn’t the time to panic… it’s the time to pivot and look for strategies making money in this environment.

If you’re fearful of a potential market pullback and looking for a simple strategy that allows you to take advantage of crashing stocks… then check out how my trading system can help you profit during a market selloff.

Source: WeeklyMoneyMultiplier.com | Original Link

Dollar Ace Review | Kyle Dennis Reveals His New Options Trading Strategy

You’re about to get your hands on the biggest breakthrough in options trading.

A “fail-proof” system that identifies sub $1 option contracts that are priced in your favor due to “insider” information.

The story behind these contracts is simple.

Kyle Dennis, millionaire trader and educator, has been tracking the activity of the biggest funds and came across a scanning technique that exposes their buying and selling patterns ahead of key events that directly affect stock price.

Because of this, he can accurately predict which contracts can double or triple quickly!

Imagine a $1000 position doubling or tripling within a few days…

And then doing that all over again consistently!

The power of this strategy can’t be ignored and all it takes is about 5 minutes a day to implement.

Leave the heavy lifting up to Kyle. He’s use to it.

He’s taught over 10,000 people how to trade and this is his newest evolution.

Dollar Ace. Click HERE for Details!

Current traders can’t get enough of him! He, himself, has turned $15,000 into $7 million in less than 6 years, and now people are outpacing his gains!

Just ask Vidashara…

If you’re looking for an easy-to-apply system that can double or triple your money every week, you’ve come to the right place.

Limited capacity…Register Now for Kyle’s Event on August 22nd at 8:30PM ET.

Jeff Bishop Weekly Money Multiplier Strategy | The Trade War Has Already Damaged the Markets

Stock futures are pointing to a higher open this morning, but despite the bullish price action– there has been significant structural damage done to the market that we need to talk about.

So much so… that I wouldn’t be surprised if the market reverses and even goes negative today.

And according to the world’s largest hedge fund manager, Ray Dalio, the U.S. is expected to dip into a recession before 2020.

Of course, that’s just one (powerful) person’s opinion, and no one has a crystal ball. But as traders, our job isn’t to forecast, it’s to seize opportunities in the market.

And despite all the gloom and doom talk you’ve been hearing recently, just know there are plenty of strategies that focus solely on capturing alpha in a market downturn… and I will teach you how to master and profit off of them.

But first, there are a slew of charts that I need to go over with you, not only to prepare you for the upcoming trading day, but for the days and weeks to come.

There are key levels, that you should be aware of, that show you signs to look for to either get aggressively bullish or bearish.

The Trade War Has Already Damaged the Markets

Even though the market bounced yesterday… as Walmart Inc (WMT) pulled stocks higher after its earnings beat and strong guidance… and gapping up today… it doesn’t mean it’s all glitz and glory for the market.

As we all know… one company doing well isn’t a real indication that the overall market will do well… and comments on renewed trade talks can change very quickly.

We’re still in the midst of a full-fledged trade war… and there’s still a chance that we see a quick correction in the market… and a potential recession.

Before I get into the reason behind this selloff, why the market is acting the way it is, and where we go from here… I need to bring something to your attention… something that will tell us which direction the market will actually move.

I’m talking about the Death Line, and we’re still pretty close to it.

Why are traders focused on the key level at $282 – also known as the Death Line?

Well, if you look at the chart above… you’ll notice that SPY has actually bounced off the red line (the Death Line) on the hourly chart multiple times. Yesterday, we saw the bulls hold the line as they fended off the bears.

Today, we’re seeing some “buy the dippers” come into the market, as it’s set to open up around the $287 level. However, if you look at the chart above, that’s a key resistance level… and it wouldn’t be surprising to see the market pullback after it reaches that level.

You see, there are only so many traders who will be willing to jump into the fire and start buying stocks with all this volatility…

… if the bears win the battle and SPY breaks below the Death Line, it wouldn’t be surprising to see a sharp move lower… and I can use my system to take advantage of crashing stocks.

So what brought us to this Death Line?

It’s all been due to a game of “He said, Xi said”. What I mean by that is what Trump and Chinese President Xi have been saying and doing.

Both sides are treating the Trade War as a zero-sum game… and it’s hurting the market.

You see, China and the U.S. want to make their own rules… and neither side is incentivized to take a deal right now.

Why should China bend the knee to the U.S. when it’s raising tariffs on Chinese goods?

Why should the U.S. bend the knee to China when it’s taking advantage of U.S. consumers?

Neither side wants to bow down… and both want to come out of the Trade War as the clear-cut winner.

Consequently, we’ve seen a lot of back and forth action between Trump and Xi as each side is trying to get the upper hand… one day Trump is slapping on tariffs… in an attempt to force China into a trade deal…

… a few days later, we’re seeing China weaken its currency to levels it hasn’t seen since 2008 to prevent tariffs from affecting its economy.

Two weeks ago, Trump came out and said the U.S. would impose 10% tariffs on $300B worth of Chinese goods… and China retaliated by introducing a new powerful weapon to the Trade War on Aug. 5 – its currency.

By weakening its currency below a key psychological level at 7 Chinese Yuan, it sent shockwaves across the globe and caused all this volatility… pushing SPY down to the Death Line at $282…

Thereafter, we saw Trump try to support the market and take some risk off the table by pushing those tariffs until December 15… however, that tactic didn’t work, as the markets have continued to be put under a lot of pressure.

The Trade War has been hurting the economy… and we’re just now starting to feel the effects of it

We’re finally figuring out the real cost of an all-out trade war… and traders are finally taking note of this.

In a market that’s as intertwined as this one… there really isn’t going to be a side that wins and doesn’t take some damage.

Why?

Well, think about it this way… tariffs have negative effects on not only the end-consumer but also producers.

So when the U.S. raises tariffs, it actually hurts the overall economy, as consumers will be less likely to spend money and spur economic growth since they don’t want to pay higher prices. Not only that, it ends up costing companies money… pushing them to look for ways to cut their expenses.

And the trade war has been actually hurting the economy for a while… all happening right under our noses.

You see, the trade war has directly impacted economic growth.

According to Moody’s Analytics, the trade war with China has already eliminated 300,000 jobs and caused GDP growth to drop by 0.30%.

It might not sound like a lot to you… but a few quarters of stagnant or contracting GDP growth is the definition of a recession… and if tariffs continue to be slapped on by either side… it could impact GDP growth by as much as 0.70%.

That added another degree of volatility to the market that we can still take advantage of, as the yield curve confirmed all this with one of its largest sirens earlier this week.

We saw the 10-Year Yield get below not only the 3-Month Yield… but also the 2-Year Yield.

Typically, we see this action in the bond market prior to recessions. In fact, every single recession that happened over the last 50 years or so was preceded by an inverted yield curve (longer-term yields falling below shorter-term yields).

Source: New York Fed

The price action in the bond markets sent stocks plummeting and forced SPY down to the Death Line… as traders were fearful of a recession and panic selling stocks to take some risk off the table.

It’s quite clear that the trade war has been affecting the economy… and you’re probably on the edge of your seat right now wondering, “Jeff, where do we go from here… what happens next?”

The Key is in the Death Line

We’ve already seen how chaotic a devaluation of China’s currency can be… and it could use the same tactic if Trump threatens China again with tariffs, which would essentially nullify the tariff… causing a standstill and a frenzy in the markets.

We could also see both sides engaging in peace talks again and coming to a short-term agreement, which could cause the market to bounce.

Sure the market is gapping up for this morning…

… but it seems like neither side will give in… and all it takes is one tweet or one thing Xi says to send the market lower.

With that being said, I’m going to remain nimble and look for stock-specific plays until I see a clear direction in the market.

Here are the charts I’m looking at currently…

You saw this chart earlier, and it’s going to be a key level. If SPY breaks below this, look for a rush of sellers. On the other hand, if it holds that level and starts to bounce… it’ll attract the “buy the dippers”, which we’re seeing this morning.

However, as we all know… one bullish day doesn’t mean we’re trending higher because there are still a lot of risks on the table.

If you’re into tech stocks… then you’re going to want to keep an eye on the Death Line (just below the $180 level) in the PowerShares QQQ Trust (QQQ) – the tech-tracking ETF. Sure, QQQ is set to gap up to $185, but that’s right at a key resistance level… and just like SPY, QQQ could pull back from there.

If I decide to make any market moves… I’m going to let my clients know exactly what I’m doing. I’ll tell you one thing, no matter which direction the market goes… there is money to be made.

That’s the beauty of being an options trader… I’m not locked into being a bull or a bear… I can navigate the markets and use my alpha-generating strategies if we break below the Death Line or if stocks rebound.

Source: WeeklyMoneyMultiplier.com | Original Link

Jason Bond Weekly Windfalls | How to Beat This Volatile Market?

Make no mistake about it… yesterday was as brutal as it gets for the stock market. In fact, it was the fourth-worst close (-800.49 points) in the +100 year history of the Dow Jones Industrial Average.

And while I consider myself a pretty nimble trader there was very little time to maneuver with stocks gapping down at the open and dumping all day long.

I started off the week hot – up a significant amount – but saw those profits wash away in a matter of hours.

All I can tell you is that the market sentiment is ugly right now.

Can it change?

Of course it can, but it can also get a lot worse.

And despite yesterday being the worst single-day decline the stock market has had all year– the VIX, the market’s fear index, closed at 22.10.

Now, I am not going to give you a lesson on the VIX, but I will say this, the VIX rises when panic and fear dominate market sentiment.

Earlier, I mentioned that yesterday’s close was the fourth worst for the Dow in its +100 year history.

Well prior to that, and now the fifth-worst close, occurred on December 4th, 2018, when it dropped by 799.36 points. Now, I bring it up because, at the time, the VIX closed at 20.74.

However, it didn’t peak until weeks later, where on December 24th it traded above 36, which was also the day the market bottomed.

I’m not implying that history is going to repeat itself. But I am saying things could get worse and you should be prepared.

But first, I’ve put together a list of the top 3 do’s and don’ts— that will not only position you to profit, but potentially save you a lot of money too.

First things first

Make sure you are trading with risk capital.

What does that mean?

It’s money you can afford to lose. As an adult, you should know what that means.

DO: Trade Stocks Not Correlated to Macro News

CNBC had a special last night, “Markets in Turmoil,” and if you look at a lot of the stocks they talk about on their programs– I can see the reason for the special.

(You’d be hard-pressed to find a large-cap stock that was up yesterday)

However, what if you looked elsewhere– like small-cap momentum stocks – what my Jason Bond Picks service specializes in – you’d be amazed at how many stocks move opposite from the overall market.

For example, take a look at the stocks that lead Wall Street yesterday:

(The leaders consisted of small-cap momentum stocks, my bread and butter)

Remember when I mentioned how investor sentiment was even worse last December?

Good.

Because I was kicking butt trading small-cap momentum stocks back then:

(I primarily trade momentum stocks using three easy to learn stock patterns, if you’d like to learn what they are then watch this.)

Look, I don’t claim to be an economist who can talk to you about an inverted yield curve, the Chinese yuan, or any of that jazz.

The reason why I’ve been able to hit $400K in trading profits this year is because I keep it simple and stick to my strengths. I can teach you to do the same.

Don’t Panic

A lot of what is going on right now is sentiment-based. Just a few weeks ago everyone was celebrating a rate cut from the Fed.

Who is to say they don’t do it again given the recent weakness the market has experienced.

Or what if President Trump is able to actually strike a trade deal with Chinese officials– what do you think will happen to stocks then?

They’ll probably shoot back up. Now, I’m not saying that you should expect that, but sentiment can turn around fast, as it’s proven. And because of that, you shouldn’t panic.

If you are uncomfortable with your exposure, then consider lightening some of your positions up. Or even learn strategies that profit when stocks crash, like Jeff Bishop teaches in this video.

They say the market takes the stairs up and the elevator down. Well, if that’s the case, then stocks may experience a violent sell-off, but it will be short-lived if anything.

DO: Stick to Defined Risk Strategies

While my Weekly Windfalls strategy isn’t perfect, I can go to sleep at night knowing exactly how much I can lose on every single trade– right down to the penny.

And the beauty behind the strategy is that it isn’t based on a particular market trend. You can structure bearish and bullish trades and they can be equally as effective and profitable.

Watch this to learn more about it.

Don’t Try To Be A Hero

I don’t know any traders who have made their living by picking tops or bottoms – as romantic as it sounds.

The market clearly isn’t rational, so why try to trade like it is?

Don’t jump out because you think it’s going to get worse and then believe you’ll have the skills to get back in before the turnaround.

DO: Make Adjustments

Stocks are moving faster and are experiencing larger swings. So consider reducing your position sizing on trades.

For example, let’s say you typically give yourself a $0.50 stop on a trade.

However, the increase in volatility means you have to give your trade more room– so you adjust the stop to $0.80.

But to make it work, you MUST decrease your share size accordingly.

Adjusting your share size (or contract size if you trade options) and modifying your stops are two steps you can take to improve your trading right away.

However, there are other improvements you can make too.

For example, consider changing your trade hold time. What I mean is, if stocks are moving off news headlines and tweets– which we have no control over– then why not just take profits quicker when you get them.

Another adjustment is for those who have portfolios. If you must hold overnights then consider having a balance of longs and shorts. An idea that should work exceptionally well for my Weekly Windfalls service.

In other words, become more nimble.

Don’t try to do it on your own

This is my best year trading since launching the Jason Bond Picks trading service, and of course, I can give you a number of reasons why I think that is.

But near the top of the list has to be my network of traders. I can’t tell you how many times I leaned on Kyle Dennis or Nathan Bear to pick up a trading idea, or technique that helped me add an extra five to six figures to my trading results.

Why try to trade this market alone when you don’t have to?

The best athletes in the world practice together and the best traders in the world trade together. Imagine having little to no stock market experience but are able to rub elbows with multi-millionaire traders for tips, trade alerts, and knowledge – you’ll cut the learning curve down to the bare minimum.

I leave you with these words of encouragement: You are in control. If you don’t like this market then go to cash. No one is forcing you to trade.

However, I’ll be trading stocks and options… and excited about the opportunities this market volatility will give us.

If you’d like to trade momentum stocks alongside me, you can – when you join Jason Bond Picks, you’ll gain access to a feed of my life portfolio, as well as receive my trade alerts in real-time.

However, if you’re interested in trading options with me, then you’ve got to go with my Weekly Windfalls service.

That is if you want something that is “set-it-and-forget-it”, highly reliable, extremely profitable, wins often, and promotes a risk-defined strategy. If so, then click here to join now.

[Ed. Note: Jason Bond runs
JasonBondPicks.com and is a swing trader of small-cap stocks. In 2015 he earned a 180% return on his money. Then in 2016 he turned a $100,000 account into $430,000! Discover How He Did It]

Source: JasonBondPicks.com | Original Link

Kyle Dennis Small Account Challenge | Millionaire Roadmap

Yesterday marked the first day of my Small Account Challenge in the Millionaire Roadmap. It’s where I take a small trading account ($8,132) and try to build it up to $1,000,000.

Sounds crazy… or like some sort of marketing gimmick…

But it’s not.

In fact, I’ve done several of these challenges in the past. And while $1,000,000 might sound like a lot to most folks… my average trading profits over the last five years has been significantly greater than that.

Now, I’m not telling you this to brag… but more so to let you know that I have a process to turn my latest Small Account Challenge into a success.

Furthermore, I teach the mindset needed to grow a small account. And show you how to break it down in levels– so that you’re not overwhelmed and stressed out.

Three Stages of Turning $8,132 into $1,000,000

If you haven’t heard yet, I’m taking on my final Small Account Challenge. This small account challenge is going to be a little different… I’m going to try to replicate the success that I had when I got my first million.

Here’s a little background: I started with $15,000 and tried to trade alone… only to realize I didn’t know a whole lot about trading and my account dwindled down to just $8,132.

At that point… I wanted to quit… but I actually found Jason Bond and became his first Millionaire Roadmap student… and I knew I just needed to remain goal-oriented and I would make my dreams turn into a reality.

In just a few short years, I turned that initial $15,000 (keep in mind I was down nearly 50% at one point) into $7M… the first million was the hardest, and the others were a lot easier.

I didn’t make my first million overnight, however… I had goals along the way… and today, I’m going to show you some of the steps I’m going to take to turn $8,132 into $1,000,000.

Develop the Right Mindset

The first thing you need to do is have the right mindset. You see, when people think about turning ~$8,000 into $1,000,000 in the markets… they think they just need to hit one massive trade and they’ll become an overnight success…

… or they think, I just need to make a series of trades in a short period and that $8,000 is going to magically double multiple times until you get to $1M.

However, you can’t think like that… and I’ve experienced that first hand. You have to be calculated.

The way to think about it is turning $8,000 into $25,000… then $25,000 into $250,000 and then $250,000 and beyond.

When you break it down this way… it actually simplifies your trading. You see, along each step of the way… I’m using different profit buckets – different money-making strategies.

Level 1 – Growing from $8,000 to $25,000

The first goal in this challenge is to turn $8,000 into $25,000.

Why did I break the small account challenge into three parts?

Well, there are levels to trading… and there are some strategies that you can’t use depending on the amount of capital you have.

You see, when you have a small account… you can’t really day trade. More specifically, you can’t place more than 3 day trades within 5 trading days.

Chalk that up to the Pattern Day Trader (PDT) rule. Basically, if you buy and sell a stock the same day more than three times within five business days, you risk your account being frozen.

So how do we prevent this from happening?

Well, we simply swing trade. What that means is we buy a stock and look to hold it for 1-3 days. With swing trades, you can build your account up fairly quickly because you can take 10 – 30% profits in such a short period

This provides us with strict guidelines and allows me to focus on one of my most profitable strategies to get to $25,000 so I can “unlock” some more profit buckets.

For example, one of my strategies is the catalyst runup… in which I spot multiple catalysts and pair them with a chart pattern. Generally what happens is I buy the stock and it starts to move higher into the catalyst.

For the most part, I will be sticking to this strategy until I can build this small account up to $25,000… and I’m going to keep things real simple by focusing on four chart patterns. The goal here is to grind the portfolio higher.

Level 2 – The Road from $25K to $250,000

Once you advance and get to $25,000… things get a little bit easier.

Why?

Well, after you get to $25,000… you “unlock” a lot of different trading strategies out there. The best part is once you get above $25,000 you get rid of the pesky Pattern Day Trader (PDT) rule.

You see, the PDT rule only applies to those who have a trading account below $25,000.

So once you get above that threshold, you can trade a little bit more actively and take on more catalyst trades.

Basically, you’ll have more profit buckets – you can swing trade, day trade and even have longer-term holds. In other words, you’ll have more ways to make money and maximize your returns.

Ultimately, you can be taking trades that help you generate returns like this…

Thereafter, as I build that account up and get closer to the next stage… I can add another profit bucket into the rotation, like my options strategies…

The first two levels will be the ones where you’ll actually see the most progress. Once you get over the $25K mark… and the $250K market… you’ll start to realize how much opportunity is actually out there… and the last stage can actually be smooth sailing.

Level 3 – $250K and Beyond

Once you get your account up to $250K… a lot of doors open.

You can still stick to your money-makers – for me, that’s mainly catalyst trades, options, swing trades, and day trades.

However, you can add even more profit buckets into your trading arsenal. That means you can do longer-term investing, selling puts and calls, taking on different types of options spreads trades and look for new ideas and strategies.

In this stage, you’re really honing in on your skills and becoming an expert in trading… and that’s when you hit home runs like this…

If you have a small account… it’s possible to turn it into a 7-figure account. All you need to do is develop the right mindset, a winning strategy or two, and then break it down into stages.

If you’re serious about joining me as I build my small account up to 7-figures, then for a limited time… we’re opening up the Millionaire Roadmap application process, all you have to do is click here for details.

Don’t wait for this account to reach five and six figures first… get in on the ground floor and let’s take on this journey together.

[Ed.note: Kyle Dennis runs BiotechBreakouts.com. He is an event-based trader, who prefers low-priced and small-cap biotech stocks.

To learn more JOIN THIS SPECIAL ONLINE EVENT: 3-Step Plan Kyle Used to Turn $15,253 into $2,855,475 and download his FREE “The $2.9 Million Biotech Trader Playbook here!]

Source: BiotechBreakouts.com | Original Link

Jason Bond Weekly Windfalls | Avoid These 3 Trading Mistakes

It’s easy to make mistakes when stocks are moving all over the place–reacting to headlines and tweets.

This morning, I’m going to cover three errors that I’m seeing traders make in this market, and offer my advice on how to overcome them.

Here they are:

Problem 1: Overtrading

Do you plan your trade and trade your plan?

Overt trading is when you jump in and out of too many trades, many of which weren’t even planned for.

What are some reasons why we might overtrade?

We keep losing, so we continue to trade in hopes of getting that money back
We don’t have a clearly defined edge, so we assume that more trading equals more opportunities
We blindly follow others, and don’t take ownership for our decisions
We try to force an outcome that isn’t there
We are not patient, and want fast results right away

The Fix:

Write down what your edge trades are. For example, here are my edge trades for my Jason Bond Picks service. And focus on those setups exclusively. My Jason Bond Picks service focuses on 3 highly profitable setups, which you can learn more about here
Review your trades. If you review your trades one by one and identify the reasons why you got in them, then analyze your plan and execution. Eliminate the trades that don’t make sense after review
If you have a real problem, then give yourself a hard number. For example, “today I’m going to limit myself to 3 trades and will only take this setup if it comes”
Take a break. Overtrading can often be attributed to going on “tilt” or some other form of frustration

Problem 2: Not taking your trades

Instead of overtrading, some traders become too scared to put on “their” trades.

The perfect setup arises, but they are too afraid to pull the trigger.

Here are some of the main reasons why this happens to traders:

Maybe they’ve experienced a series of losses
Having doubts about the strategy
Lost in something else and are scared to lose more
Lack of confidence in overall trading

The Fix:

Two weeks ago I took a bath on some of my Weekly Windfalls trades. They were slightly bullish positions that turned south after all the tweets and headlines on trade talks hit the tape. It wiped out several hard days of hard work.

However, I had tested the strategy out. And I knew, from time to time, that would encounter drawbacks. But I also knew that in order to win with my Weekly Windfalls strategy, I must play the numbers.

For example, if I lose a trade or two, the numbers tell me I will be right on the next 8-9. If you had numbers backing that up, would you be scared to lose or take the next trade?

I wasn’t… and that’s how I managed to have one of my best trading performances of the year– last week.

(New Jason Bond Picks Alerts are coming later today and throughout the week. Not a member? Join Now)

A great shooter like Klay Thompson of the Warriors won’t stop shooting if he misses his first couple of shots.

And that’s how you should be too with your trading when you know that you are trading with an edge. If you need to get your confidence back up, then try going back in with a smaller position size to get started.

Problem 3: Not Making Adjustments

If stocks are moving more than they usually do, then you have to make adjustments. It’s that simple.

For example, if a stock typically moves in a $1 range, and now it’s moving in a $2 range– then you have to either make adjustments to your position sizing or where you set your stop– to adjust for the volatility.

And since it’s a news-driven market, consider taking profits earlier because they can reverse off a tweet or breaking news story.

One of the mistakes that I made a few weeks ago was not being balanced with my options portfolio. I should have had a combo of long and short bias positions. Instead, I was too long on bias, and that ended up costing me.

However, I made the adjustment the following week, and proceeded to have my best trading week of the year, despite all the market madness.

I’m on pace to have my best year ever as a trader, as I’m now up $424K year-to-date. I’ve been able to get here by making adjustments, asking questions, learning, and surrounding myself with traders better than me.

Now, whether you’re trading momentum stocks or options, there will be plenty of opportunities this week, so stay patient, and be ready to get after it guys and gals.

Source: JasonBondPicks.com | Original Link

Jeff Bishop Weekly Money Multiplier Strategy | Is the Bond Market Signaling A Recession?

The market’s fear index, the VIX, exploded on Monday, rising nearly 17% and closing at 21.07. Now, the more investors experience panic and fear– the higher the VIX goes. And according to this sentiment indicator, yesterday was the sixth scariest close of the year.

But do you know what else was alarming?

Global bond yields are at the lowest levels in over 100 years. And yesterday, U.S. Treasury yields took another bath– as the yield curve flattened to its lowest levels since 2007. The 30-year treasury bond yield is also nearing all-time lows.

It’s this type of action that has some economists believing we are on the brink of a recession.

Do they have a reason to be concerned?

Should you add protection to your portfolio?

Is a “buy the dip” moment on the horizon?

I’ll answer those questions and more in a little bit.

But before I do, I should say this: don’t worry about what you can’t control and focus on what you can.

If you learn the skills to make money when stocks are trading sideways, bearish, or bullish– you don’t panic– you just adjust your strategy to fit that market condition.

Is the Bond Market Signaling A Recession?

U.S. Treasury yields collapsed yesterday… and stocks were weak yet again, as there are concerns about the U.S. – China trade war and global political tensions. That said, we’ve seen a lot of traders bid up bonds in an attempt to protect their portfolios.

What that actually signals to us is that traders might actually be afraid of a stock market crash.

You see, the yield curve is sounding a warning siren… the loudest siren the markets have heard since 2007 – prior to the global financial crisis.

Here’s what I’m talking about…

Source: New York Fed

If you look at the chart above (keep in mind this data is reported monthly), as of August 2, you’ll notice that the Treasury Spread between the 10 Year Treasury Bond and the 3-Month Treasury Bill is negative.

In other words, we have an inverted yield curve. This occurs when short-term Treasury bond yields are higher than long-term ones, exactly like we’re seeing now.

If you think about it, it doesn’t make a whole lot of sense… typically you get better yields (higher interest rates) if you’re buying longer-term bonds due to the added risk.

The way an inverted yield curve works is that investors and traders expect lower interest rates in the future (they’re expecting the Fed to cut rates and have concerns about economic growth) than they are anticipating in the near future (say 3 months from now).

As traders’ expectations for economic growth to slow down, bonds become more attractive because they act as a hedge to portfolios. In turn, this actually drives yields lower.

Typically, we see an inverted yield curve prior to recessions…

Right now we’re seeing the 10-Year Treasury Yield at 1.639% (as it collapsed yesterday)… and the 3-Month Treasury Yield at 1.989%.

Just take a look at the price action in the 3-Month U.S. Treasury Yield this year so far…

… now compare that to 2007 (as we were heading into the financial crisis)…

Check out the 10-Year Treasury Yield so far this year…

… and back in 2007.

We’re seeing the similar action in both the 3-Month and 10-Year yields right now as we saw back in 2007 right before the last financial crisis.

It’s not just a one-off, we typically see short-term bond yields climb above longer-term yields ahead of economic downturns…

… if you refer back to this chart… you’ll notice that every time the 3-Month and 10-Year Treasury Yield spread broke below 0… a recession followed.

If you look in the chart above (the vertical lines signal the recessions).

February 2006 – We saw the yield curve inverted for the first time… thereafter, the global financial crisis followed in 2007 – 2009.
July 2000 – The yield curve inverted for the first time… and we saw the internet bubble pop and a recession.
May 1989 – Yield curve was yet again inverted prior to the 8-month long recession in the U.S. from 1990 to 1991.

You get the idea.

However, you might be wondering, Jeff if you’ve seen this signal before, does that mean you’re piled in on the short side?

Well, not quite yet. You see, the move actually takes a bit of time to materialize.

You see, short-term yields can rise above longer-term yields well before the economy shows signs of slowing down… so before I place large bets on a potential stock market crash, I’m going to remain patient and continue monitoring the situation.

Right now, some exchange-traded funds (ETFs) I’ll be keeping an eye on with yields include the SPDR S&P 500 ETF (SPY), PowerShares QQQ Trust (QQQ), iShares 20+Year Treasury Bond ETF (TLT), and the VIX.

Here are some charts I’m watching right now…

I’m going to remain patient and wait for a clear signal before I get into any trades. For the most part, I’ll be looking for my money pattern and keeping an eye on key levels… and I’m looking for fast triple-digit returns…

If you want to start making money on new ideas and increase your chances of producing triple-digit winners,you’ll want to check out my latest breakthrough trading system – Weekly Money Multiplier.

Source: WeeklyMoneyMultiplier.com | Original Link

Kyle Dennis FDA Insider Alerts | How I Made $11K Using This Trade War Proof Strategy

Right now stocks are moving on fear and uncertainty. And of course, that sends volatility through the roof.

It also means that most stocks will be correlated. For example, it’s not uncommon to see every sector trade lower when we have macro news dominate the stock market–like it is now.

So how can you win in this market without getting sucked into all the macro news we’re seeing?

Simple.

Trade ultra-specific catalysts– like biotech stocks

For example, while most traders were dodging bullets, watching their screen flash red, and how much lower can this market go– I was busy taking profits to the tune of $11K.

(Tired of trading a macro news-related market? I don’t blame you. That’s why I have been sticking to biotechs and booking profits along the way. Ready for my next alert? Join Now)

Now, I’m going to share with you:

What I saw in NBRV and FOMX
The trade setup
The reason why I got in
And how you can you repeat this strategy over and over again.

How I Made $11K Using This Trade War Proof Strategy

It was another wild Monday for stocks and traders have been struggling to figure out where the market is headed… not only that, there’s so many landmines out there that you need to be able to pivot once something isn’t working.

In this news-driven market, I know trying to play large-cap stocks or trade ETFs is going to be difficult… instead, I trade a market that hasn’t been getting too much attention from the mainstream media.

I’m taking on catalyst event trades, more specifically, those surrounding U.S. Food and Drug Administration (FDA) data releases in biotech and pharmaceutical stocks.

Why?

Well, I know that these catalyst event trades won’t be impacted by macro variables… like the U.S. – China trade war, the Chinese yuan weakening to levels it hasn’t seen since 2008, or concerns about slowing economic growth.

You see, these biotech and pharmaceutical stocks are typically very small and traders are solely focused on company-specific news.

Think about it like this, if a biotech company is in the research and development (R&D) stages and primarily looking to get its treatment approved by the FDA… traders will only be focused on company-specific news, not what’s going on around the world.

My strategy is super simple, yet highly effective.

All I have to do is spot the catalyst ahead of time, look at the charts and come up with a trading plan.

For example, I look to BioPharmCatalyst for their FDA Calendar. Basically, this calendar shows me any upcoming events that could potentially move a stock.

Once I find the catalyst, I look at the charts. If I see an upcoming catalyst, I want to see what the price action has been like over the past few days or weeks… and if I see a bullish setup with an upcoming catalyst, I’ll look to build a position.

For example, I actually spotted an upcoming catalyst event last week in Nabriva Therapeutics (NBRV). The company is expected to have an FDA approval date in mid-August… and I actually spotted a bullish pattern.

The stock has been consolidating and I actually saw it pull into an uptrend line, which was where I bought shares. At that level, I figured it was a good risk-reward, and my profit target was $2.40 or higher (the resistance level).

While the market was selling off yesterday morning… NBRV was actually above my profit target and I decided to take everything off the table. Not only that, I was taking profits in another catalyst trade in Foamix Pharmaceuticals (FOMX).

My catalyst runup strategy is not only effective in any market environment, it’s scalable and repeatable.

With FOMX, the trade was more or less the same. I found a catalyst event and noticed a bullish chart pattern. However, there was actually more bullish news in FOMX the day that I bought shares.

FOMX has a catalyst in October (FDA Approval date), so I was a bit early. However, the company got investments from Perceptive Advisors and Orbimed, which are two of the best biotech funds… so I bought shares after it had a bullish gap up.

Keep in mind, I bought shares on July 30, just before the market started to pull back… and I held through all that volatility, but look at what FOMX was doing…

It didn’t care what the market was doing and just kept running higher.

The reason why I was able to hold onto these stocks and still take profits when the market was selling off?

Well, my strategy is not really correlated to the overall market and macro variables… instead, the stocks I’m trading move on company-specific news and charts.

If you’re looking for a new way to protect your portfolio and start making money when stocks are volatile (heck, in any market environment), then you’ll want to check out FDA Insider and Sniper Alerts bundle, and so much more… and I’m offering it at the lowest price for a limited time.

[Ed.note: Kyle Dennis runs BiotechBreakouts.com. He is an event-based trader, who prefers low-priced and small-cap biotech stocks.

To learn more JOIN THIS SPECIAL ONLINE EVENT: 3-Step Plan Kyle Used to Turn $15,253 into $2,855,475 and download his FREE “The $2.9 Million Biotech Trader Playbook here!]

Source: BiotechBreakouts.com | Original Link