The Sideways Grind Everyone Hates Is Perfect for Fade Trades

by | Feb 19, 2026

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The market’s been grinding sideways since October, and I know that’s frustrated a lot of traders. But here’s what’s interesting: This environment is actually creating more opportunities for the kind of trades I’ve been focusing on amid the chop.

These back-and-forth swings generate big sell-off days that often turn into sharp pops, and those reversals open the door for high-probability setups. What most people see as noise, I’m treating as fuel.

When I pull up the S&P 500 (SPY) chart from October forward, it’s just up, down, up, down — over and over again. It’s ugly, but that same chop gives us those dramatic one-day drops that tend to snap back.

And in a market that naturally moves higher over time, I prefer trading these moves from the downside back up. Going bullish into weakness aligns with the broader structure and gives me a built-in edge.

Why Choppy Markets Beat Strong Trends for This Strategy

Here’s the thing most traders don’t think about: When things are trending strongly higher, we get far fewer opportunities that align with the broader market. You might catch one or two setups per month… maybe.

But right now, two-to-three-day pullbacks are happening constantly. And every time SPY drops a couple of days in a row, I’m scanning for names that have also pulled back — especially in sectors like Energy (XLE) that are still holding relative strength.

It’s also the kind of environment where shorter-dated Lotto Board setups can shine. When we get a sharp sell-off, those quick-expiring plays can offer outsized rewards if the market bounces even even a little bit.

You never rely on them as your core strategy, but when volatility picks up, they can become surprisingly effective.

The same chop that’s been crushing directional plays — maybe 40% of names are actually up right now because of the whipsaw — is exactly what makes overnight fade trades work.

You’re not trying to ride a trend. You’re capitalizing on the mean reversion that often happens after sharp moves.

Why I’m Teaching This Strategy Right Now

For the sake of full transparency, my longer-term directional plays, the ones I call Lotto Board setups, have been challenged by this environment. Time decay eats away at positions when the market doesn’t move with conviction.

But fade trades? They thrive here.

These overnight moves can be powerful, especially when you line them up with the broad market. I’m not talking about random reversals. I’m talking about disciplined setups where the stock and even the sector has pulled back, SPY has pulled back, and you’re positioning for a relief bounce.

Even in strong sectors like XLE, we’re seeing these two-to-three-day pullbacks that can be exploited when SPY also aligns. That’s the kind of confluence I look for. And honestly, markets like this are perfect for it.

This is one of the best environments to be actively trading because volatility creates opportunity if you know how to approach it.

So yes, the market has been frustrating. But if you know how to read it — and you’ve got a strategy built for this kind of environment — there are multiple opportunities per week right now. You just have to know where to look.

Graham Lindman
Graham Lindman Trading

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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. 

P.S. Are You Set for Today’s Members Only Meeting?

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Because it’s not an exaggeration when I say the Lotto Board has flagged some of the most incredible trading setups I’ve ever seen.

I’ve been testing it live on our FREE calls…

Refining the signals…

And trading a handful of setups in real time.

The results have been remarkable. Here are some of the best ones:

Of course, we’ve seen smaller wins and trades that went against us…

But at 11 a.m. ET today, I’ll be live for a members-only session to show the full Lotto Board in action, and trade the very best opportunities it’s flagging right now.

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Don’t Miss Out!

We develop tools and strategies to the best of our ability but no one can guarantee the future. There is always a risk of loss when trading. Past Performance is not indicative of future results. Between 1/8/26 through 2/17/26 the “Lotto Board” trades taken with real money by Graham Lindman have produced a 79.5% win rate, with an average return of 170% and an average winner of 230% over a 9 day hold time on average – and a 19.93 Profit Factor.

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