You’ve likely just made it through one of the worst market sell off we’ve seen since 2020… And most indicators are pointing to a short term bottom here.
Take a look at this chart of XLK - the technology sector.
We’re seeing classic bullish divergence on the RSI indicator, and the last four times the sector reached this trendline, the price bounced hard.
There’s no reason to think we won’t get another relief rally with tech leading the way.
The chart of TLT, the price of the 20 year bond, is also showing signs of a short term bottom.
With the biggest green candle we’ve seen in over a month, bonds will likely trend higher taking pressure off interest rates (also bullish for tech).
And we’re now seeing bullish divergence show up on the RSI here as well.
All signs point to a hard bounce from these levels…
But here’s why it would be a big mistake to go out and just buy XLK…
You see, volatility will remain high in this environment until we see a peak in inflation, de-escalation relating to the Russia-Ukraine war, and improvements in the global supply chains.
That’s why it’s more important than ever to incorporate a built-in hedge into your trading strategy.
The right hedge can allow you to profit even if the market goes against your initial investment.
I want to show you exactly how I’m gearing up to play this bounce… all while protecting against more downside risk.
Now isn’t the time to go all in on a falling knife… there are much safer ways to play this bounce.
Click here to see exactly how this hedged trading method has been able to dominate the markets since the beginning of the year - all while everything has sold off hard.
This is one meat-and-potatoes training webinar you DON’T want to miss right now.
Click here to watch this time-sensitive training webinar on how to navigate the markets right now.
All the best,
A WealthPress Publication
ABOUT US: We believe that the opportunity for financial literacy and freedom belongs to all people, not just those who already have years of investing experience. WealthPress provides an array of educational services and products that will help you navigate the markets and become a better investor. Trading is made simple through our online forum full of trading techniques to give you the best tools to kick-start your investing journey. We offer collaborative webinars and training; we love to teach. No matter the opportunity, we bring together a strong community of like-minded traders to focus on analyzing market news as it’s presented each day.
DISCLAIMER: FOR INFORMATION PURPOSES ONLY. The materials presented from Wealthpress LLC are for your informational purposes only. Neither Wealthpress nor its employees offer investment, legal or tax advice of any kind, and the analysis displayed with various tools does not constitute investment, legal or tax advice and should not be interpreted as such. Using the data and analysis contained in the materials for reasons other than the informational purposes intended is at the user’s own risk.
DISCLAIMER: TRADE AT YOUR OWN RISK; TRADING INVOLVES RISK OF LOSS; SEEK PROFESSIONAL ADVICE. Wealthpress is not responsible for any losses that may occur from transactions effected based upon information or analysis contained in the presented. To the extent that you make use of the concepts with the presentation material, you are solely responsible for the applicable trading or investment decision. Trading activity, including options transactions, can involve the risk of loss, so use caution when entering any option transaction. You trade at your own risk, and it is recommended you consult with a financial advisor for investment, legal or tax advice relating to options transactions. Please visit wealthpress.com/terms for our full Terms and Conditions.
0 Response to "[Charts Inside] “Snap Back” Rally Off These Levels"
Post a Comment