Written by Forrest Crist-Ruiz After the FOMC minutes were released on Wednesday, the market responded with a sharp selloff. The Feds' underestimation of rising inflation pushed them to consider scheduling rate increases in 2023. While 2023 is still far in the future, the market responded with choppy price action. This could be taken multiple ways. The market could have been disappointed that it now knows when interest rates will increase and had hoped rates would

When you know how to read market action with the Opening Range you can see when and how another market is influencing your trades (for better or worse)! Put another way; you can also see when inter-market relationships are “working” or changing. For example… On Friday, the QQQ got off to a very bullish start when it gapped higher out of a consolidation pattern on its 50-day moving average. It looked like a perfect setup

The recent runup in Meme stocks pushed by the Reddit crowd has turned Wall Street upside down and is something to sit up and take notice of. Many pros consider the recent price action a silly phenomena to be dismissed, but we think the opposite. Very recently, the Reddit crowd bought a lot of AMC, forcing shorts to cover, which drove AMC from about 14 to 70 in the past few weeks. That’s not a

Written by Forrest Crist-Ruiz Monday, we talked about transitory inflation and decided that if general demand for goods was to continue with such strength, one of the best places to keep an eye on for investing opportunities could be in soft commodities. Not only must people eat, but as travel picks up its pace along with restaurants moving back to full capacity, we can expect demand to follow. However, this poses a problem if we

The stock market is currently in an extremely bullish mode fueled by a "bubble" inside the market that's unsustainable and unpredictably bullish. Like any bubble… The heights to which it will push stock prices are unpredictable. However, unlike most bubbles… It may be predictable. This is the third time that this specific type of bubble has developed since 2000.In each of the last two occurrences, there has been an identifiable tipping point at which this

In May the employment report was the biggest job creation miss below expectations ever. Stocks responded by rallying to new highs. Bonds also rallied. That Friday also set all-time closing highs in the SPY and DIA that hadn’t been eclipsed until yesterday. Yesterday, the employment data came in shy of expectations again. Again, stocks and bonds rallied leaving the SPY and DIA at virtually the same all-time closing high level as the last month’s report.

Written by Forrest Crist-Ruiz The Federal Reserve has called inflation transitionary as they look for the economy to continue to recover and for more people to enter the workforce. The Fed could be expecting inflation to settle down not only from people returning to work but also with a decrease in programs including the $300 weekly bonus for unemployment along with the last of the stimulus checks sent out. However, there are a couple of

Every four years a simple time frame defined by the date of the presidential election creates an Election Range in most markets, ETFs, sectors and individual stocks. This Election Range defines inflection points that enable you to anticipate when the market will trend higher or lower in a meaningful way. Anticipating which direction the market will move is simple, and very powerful for identifying big trend trades. Below you’ll find an instructional video explaining the

The Chinese Yuan hit a multi-year high last week vs. the US dollar, which means the dollar slid to a multi-year low. Remarkably and embarrassingly, this was hardly noticed or mentioned on mainstream media. Considering that the US national debt is over $27 trillion, which is the highest debt levels verses its GDP ever, and the Chinese are the second largest foreign holder (behind Japan)… This is something worth watching.  At some point we will

Written by Forrest Crist-Ruiz It is well known that supply chain disruptions in Taiwan and other leading countries which produce semi-chips for computers/Electric Vehicles have been struggling to keep up with demand. Therefore, if the EV space is looking to extend higher, it will need semiconductor supply companies to step up its game. Knowing how intertwined chips are to the EV space, we can keep a close watch on VanEck Vectors Semiconductor ETF (SMH) to

When a leading market sector sells off hard, traders should take note to avoid getting surprised by a broader market sell-off. Even better than simply noticing an important sector reversing, would be to be to anticipate the move in time to avoid it or profit from it.On Monday, the Semiconductor ETF (SMH), a recent market leader, was one of the hardest hit sectors in the market’s decline. In this post you’ll discover how you could

US Equity markets are all in see-saw patterns now, pushing up and down into resistance and support. This action exemplifies an uncertain economic environment whereby one indicator can come out positive and the next day another indicator or economic number will come out and tell a completely different story. This see-saw is not surprising for a “reopening economy” where daily economic indicators are much larger than normal and therefore will create bigger swings. Interestingly, volatility

Written by Forrest Crist-Ruiz The S&P 500 (SPY) and the Small-caps Russell 2000 (IWM) linger near all-time highs. This looks like a great setup for a rally past resistance and into higher territory. However, there are two potential problems to consider. The first is the Transportation sector (IYT), which has broken its 50-Day moving average and is now looking to confirm a cautionary phase with a second daily close under its major moving average. In

Happy Independence Day! This July we're going to focus on how and why this month, which begins the second half of the year, can be used to set you up for a great 2019. This video is a crash course in how to consistently profit with my 3 favorite MarketGauge indicators, by catching explosive trades in every market condition! You don't need to start with all 3, but I'll show you how they each work,

Last week we discussed that after new highs in the Dow and S&P, the NASDAQ100 has been “stuck in first gear” and that the Fed is stuck between a “rock and a hard place.”  We’re seeing 1970s’ style inflation being ushered in by easy money from Central Banks throughout the world. Soft commodities got a bit ahead of themselves and are currently in a process of some mean reversion, but the metals market held up