The Make Or Break Week
Last week, we saw the markets take a downturn as less-than-ideal inflation data was released and oil prices jumped. It marked the worst week in the markets so far this year.
And here’s the thing: this week hasn’t been much better.
The S&P 500 and Dow have both continued their decline and, in reality, this is a make or break week for the markets.
Will we see further correction or will we see markets rebound? That’s the golden question.
I like to watch the SPY for key levels in the broad market. For those not as familiar with it, it’s an ETF that tracks the S&P 500, and you’re able to trade it for a tenth of the cost. If the S&P 500 is trading at 6000, then the SPY will be trading at $600 (you get the idea).
So, with that being said, if we close below 500 on the S&P, our chances of a 10% drop in the markets greatly increase.
But don’t fret, we as traders can make money in both an up market and a down market.
If we see that kind of action take place in the markets, then I plan to begin diversifying immediately with some outright short positions.
Right now, I only have baskets with some short positions in them. But, in the event of a 10% market drop, we will begin deploying truly directional short trades.
In fact, I’ve already identified several areas where we will likely see a decline take place.
One, in particular, is the commercial real estate sector. It’s an area that the mainstream investors don’t often think of, but could present us with some really great investment opportunities.
So stay tuned, because this weekend we’ll be taking a deeper dive into this.
— Nate
P.S. This Friday I’ll be hosting a roundtable discussion with several other experts. We’re going to talk about 4 specific “Moonshot” trade ideas and give you the exact details for how to play them.
Now you might be wondering why I am talking about “Moonshots” when most people are thinking “Flight to Safety”… Well, what’s that Buffett quote about blood in the streets? In reality, I think the markets are showing a ton of volatility. And volatility doesn’t mean fear… It means movement. And movement creates opportunity. Maybe even Moonshot opportunities…
So I’d love for you to join our FREE session this Friday, April 19th @ 2pm. To do so, please follow this link to get signed up.
