Last week finished ugly, that usually means follow through… and as expected… it came.
No big news of note here, just an unwind of a long position that was too late to the party.
But just when we thought all hope was lost, we had a response off the lows.
Can you guess why?
As I predicted in Monday’s Market Primer, there was a very important level here.
We were hoping the markets would hold this level… because if they didn’t…
Then some short term option flows accelerate the downward trajectory and we go “open loop” again.
We also tested this level on the Nasdaq 100:
Now, we don’t want to get over our skis… it’s still VERY early in the game and there’s no guarantee this was the “higher low” that holds and we just jam to all time highs.
In fact, we could see one more divergence to the low volume node (LVN) just underneath for one more shakeout.
But if you’re looking for some long targets after the bounce, you’re going to want to know what levels to keep your eye on.
Right now, my associates and I have spotted 4 “Lodestone Trades” that could rocket up as they break correlation with the broad markets.
They’ll start to draw in cash like iron to a lodestone and could be BIG movers to close out 2022.
If you want to know more about these trades and how to play them… hang out with me live on Wednesday: