Hey folks,
I’ve been telling my members all week: this market’s been stretched.
And sure enough, we saw it snap this morning. SPY and DIA opened down about 1.2%. QQQ dropped closer to 1.5%.
But here’s the thing — even with that sharp open, we didn’t see panic. In fact, as I write this, all three are having green candle days. SPY’s up 0.30% on the day, and the other two are tracking even higher.
That’s the kind of day that shakes out weak hands — but for us, it’s exactly what we needed.
See, when the whole market’s been overbought, the setups dry up.
Most of the names I follow in the Two Sigma program have been too extended to touch. That’s what I’ve been telling my members every day this week.
But days like today? They help.
They let some of that froth burn off. They pull stocks back toward their means. And when that happens — we start to see real opportunity again.
Right now, CAVA is a ticker I’ve got my eye on.
It finally crossed the Two-Sigma threshold this week, and now I’m waiting for the snap — that sharp reversal higher that confirms the entry. If I get the green diamond signal, I’ll be ready.
Bottom line: The reversal this morning didn’t surprise me. I’ve been waiting on it. And if it creates the kind of pullback this system thrives on, we might have a few fresh setups on deck soon.
Talk soon,
—JD
The Rational Trader
P.S. Grab 2 Sigma Trader and start getting ahead of the market now.
