|
|
|
Forget 12 watchlists and 100 charts.
One ticker — Nvidia — holds the key to trading the entire A.I. surge.
Click here to see the 4-D system in action. |
|
|
Good morning: |
The third quarter has begun… and the government shutdown is here… |
Today's show is all about taking advantage of this coming volatility… |
Most people hear the phrase "government shutdown" and immediately think of national parks closing, federal workers being furloughed, and longer TSA lines. |
However, as traders, we consider liquidity, volatility, and data. |
When the government shuts down, key economic reports stop being published. |
This creates a critical information gap that affects trading dynamics in ways most retail investors don't understand. It means that we don't get the published versions of Nonfarm Payrolls, CPI and PPI inflation data, Housing market statistics, Retail sales figures, and GDP revisions and updates |
Markets can continue trading without fresh headlines… |
Historical Performance: The Pattern is Clear |
Analyzing shutdowns since 1995 reveals a predictable pattern: |
Short Shutdowns (1-5 days) |
|
Medium Shutdowns (2-3 weeks) |
|
Extended Shutdowns (30+ days) |
Market impact: -4% to -6% corrections Trading opportunity: Major rally potential upon resolution Example: 2018-19 shutdown led to significant recovery gains
|
Shutdowns rarely break markets permanently, but they consistently create tradable volatility swings for prepared traders. |
The Professional Trader's Playbook |
Risk Management Adjustments: |
Tighten stop losses: Thin liquidity combined with algorithmic trading can trigger flash crashes Reduce position sizes: Uncertainty demands smaller risk per trade Increase cash allocation: Liquidity becomes your competitive advantage
|
Opportunity Identification: |
Volatility plays to gain edge: VXX calls and VIX strategies become more attractive Wait for peak panic signals: Oversold conditions combined with shutdown resolution create high-probability setups Time your entries carefully: Hedge before chaos, buy after negative headlines peak
|
Strategic Approach: |
Monitor political developments for resolution timeline clues Watch for oversold technical conditions in major indices Prepare for rapid sentiment shifts when resolution appears likely
|
The Bottom Line for Traders |
A government shutdown isn't fundamentally about politics… |
It's about data scarcity and policy uncertainty. |
When markets lose visibility into economic conditions, price discovery happens through volatility rather than fundamental analysis. |
The Professional Advantage: |
Civilians see shutdowns as annoying disruptions Traders see shutdowns as volatility opportunities Success requires holding cash and patience, not hope and heavy positions
|
Position yourself before the chaos intensifies, then deploy capital when panic reaches unsustainable levels. The resolution trade has historically been one of the most reliable setups in political risk scenarios. |
Remember: In shutdown scenarios, cash is king and volatility is opportunity… but only for traders disciplined enough to wait for the right moment to deploy capital. |
We'll be live in 15 minutes to walk you through how to handle the next few trading days… |
Just click here to join the chat. |
Stay positive, |
Garrett Baldwin |
0 Response to "Your Government Shutdown Survival Guide"
Post a Comment