A week ago, I told you that being a rules-based trader is all about answering your what-if questions ahead of time, so you know exactly what to do in any scenario. Your discipline will always tell you what to do next.
Even when the unthinkable happens.
Last week, it was in the attempted assassination of former President Donald Trump – and the markets shrugged it off and powered higher.
Well, it’s 2024, so the unthinkable just keeps happening…
This weekend, it was Joe Biden dropping out of the presidential election – and endorsing Vice President Kamala Harris – that has everyone scrambling, trying to guess what the markets are going to do next.
The markets have had plenty of time to react to the news, and the reaction has been…
That’s tough to say. But we’re going to talk about it in today’s Five Points video.
We’ll go around the horn and see what’s changed in the last week with stocks, bonds, commodities, and currencies.
And for the first time in weeks, instead of smooth sailing to the 580 level, I’m seeing something troubling on the chart of the SPY…
That red square could signal that the markets are about to turn bearish.
If so, you might think it has to do with Biden dropping out – or any of the other chaotic news we’ve had recently.
But I would argue that markets are starting to stumble right on schedule. Take a look at this week’s Money Calendar…
We’ll talk about it today – but here’s the thing you need to remember…
We’ve been watching Invesco DB US Dollar Index Bullish Fund (UUP) for the last few weeks, approaching Covid levels of strength.
Stocks, too, have been powering higher.
But stocks and the dollar can’t both keep going up.
Something’s got to give – and based on what I’m seeing in this week’s charts, it might be stocks.
I’ll walk you through everything in today’s update.
Just click below to get started.
Days like today are the reason why I’m a rules-based trader. They’re why I trade what the Money Calendar tells me to.
Because I don’t have to make decisions about my money when emotions are running high – they’ve already been made.
Thanks to my system, I already know my risk, my profit potential, my exit targets – all before I ever enter a trade.
Even days like today, after Biden’s announcement…
Or last Monday, after the assassination attempt on Trump…
I knew exactly what I was trading.
Even better, I knew exactly how much I was going to put at risk…
Exactly how long I’d be in the trade…
And exactly when to get out.
All thanks to my Money Calendar.
Good trading,
Tom Gentile
America’s Pattern Trader