Right now, quick, short term trades are the name of the game.
Here’s how I’m trading this market.
Lately I’ve been getting more and more questions about a potential pullback.
Here’s the deal.
Yes, I still think we’re due for a pullback. Frankly, we need one.
Just a couple weeks ago, more than 70% of S&P 500 stocks were trading above their 50-day moving average. Now we’re down to about 58%.
That tells me things are already cooling off under the surface. And I don’t think we’ve seen the end of it yet.
But I’m not placing big directional bets here. I’m not going all-in on downside plays or swinging for the fences.
Why? Because this market still wants to fake people out. We saw it last week — big selloff into Friday, and then boom, we were back up to start the new week.
So instead of guessing the next big move… I’m sticking with what works in uncertain conditions:
- Short-term trades
- Weekly income
- Tight risk
In fact on today’s Profit Panel, I said as much:
Instead of trying to predict where we’ll be a month or two from now, I’m keeping things short and tactical.
I’m trading one week at a time, focusing on credit spreads with Friday expirations and adjusting day by day as the market unfolds.
It’s all about adapting to what the market’s giving me right now.
Lately I’ve been favoring early entries off the open, grabbing directional premium when I see momentum. And once the European close hits? If the setup’s fading, I’m out.
That’s it. No macro forecasts. No swing trades that stretch out for weeks. Just reading the tape and managing risk day by day.
I still think we could see a 5–10% drop before the year’s out. And if that happens, I’ll be ready — but I’m not sitting on my hands in the meantime.
The opportunities are still there… just not where most people are looking.
Stay sharp,
— Geof
