A couple of months ago, everyone was screaming “Market crash! Buy canned goods! Look for a cave to live in.” But I was a very consistent contrarian through all of that, and now what I predicted is coming true.
It’s true that we really didn’t know how this was going to shake out. But the market didn’t pull back that much.
It was actually encouraging that the market never really sold off. I kept saying that once the news starts to turn, markets are going to launch.
The Big Picture
I know no one likes the “I told you so” kind of stuff. But over the last couple of months, ever since the Iran situation happened, I’ve been repeating the same thing.
This Market Is Resolute
Meaning there is firm determination and an unwavering purpose. Even when there was terrible news flow, the kind of stuff that could affect the entire world.
That said, even I cannot believe how resolute the market was. The S&P 500 kept coming back to that 6,700 to 6,800 level almost every week.
Now, I know we broke below that level about a month ago. But then it instantly rocketed back. And for the past three weeks it’s been on a tear. Here we are at all-time highs. And the NASDAQ is on a record win streak.
I think it’s proof of my thesis.
What I’ve said every week is:
“When the news turns just a little bit positive, where it’s not like every headline is bad, the market is going to rip.”
Here we are. Now, the way I look at it is, as long as it stays this way, and we don’t get really bad news, I think we’re set up massively going into the mid-terms.
It’s kind of insane. I’ve been saying this for about a year, but the recipe is really aligning.
My Take
This is the beauty of being a short-term trader and trading patterns. We simply trade the pattern in front of us. Right now, in this resolute market, there is always opportunity.
Now, it’s easy to let FOMO take you off course when the market starts ripping like this. So, show up and stay patient. Do not rush anything just because the market is moving fast around you.
Watchlist
Back in January I was on Schwab TV and I was very bullish on space. The host joked that it sounded like I wanted to live in space.
I might be a little old for that, but I’m still bullish. Especially now that we’ve got all this hype around the SpaceX IPO.
You can’t go anywhere without hearing about it.
Until that IPO happens, we’re going to see a trend with space stocks. We see this trend all the time: Money flows into sympathy plays.
People want exposure. If they can’t buy the SpaceX IPO, they want something that will follow it. Assuming the IPO is successful, which I think it will be, other space stocks will follow.
Intuitive Machines, Inc. (NASDAQ: LUNR) is almost a mini SpaceX. It’s the same kind of space delivery model.
Source StocksToTrade LUNR 1-yr, daily candle, breakout to ATH
LUNR got a big boost in March when NASA awarded the company a $180 million contract to deliver NASA-funded science and technology to the moon.
Last week, LUNR broke through the Oracle pivot point.
Source StocksToTrade, LUNR 15d-30min, Oracle pivot point breakout
Put LUNR on your watchlist. This one is more of a swing or long-term idea, so trade it accordingly. If you want more insight, join us as a member of Daily Income Trader.
Join the next free Daily Income Trader webinar to discover how to launch your trading career into orbit.
On My Radar
- This is one way to make a buck. I’ll take trading any day, but to each his own.
- These days even billionaires have side hustles.
- Every serious trader should read, study, and dog-ear this classic: “Extraordinary Popular Delusions and The Madness of Crowds” by Charles MacKay
Have a great day.