A Big Move in Stocks is Approaching. Plus, a New Stealth Money Trade.

There are no coincidences – Only Events. In the markets. In the skies. And just about everywhere.

Something big is in the air. You can just feel it. And if you look to the sky at twilight, you can see it.

The price charts are suggesting that a big move is coming. And with this week’s CPI and PPI just around the corner along with the ongoing drama inside the beltway, just about anything is possible. Moreover, as I stated this weekend, the once in a lifetime planetary alignment playing out in the month of February may be influencing the trading crowd. Together, we have the setup for something big unfolding.

Image courtesy of freepik.com.

Stocks are shrugging off the latest tariff threat from the White House this morning just as the Bollinger Bands (BBs) are closing in around the 20-day moving average on the New York Stock Exchange Advance Decline line.

Note the tight trading pattern in the NYAD where the 20-day moving average has bullishly crossed over the 50-day line just as the Bollinger Bands are squeezing in. When the BBs squeeze in, as they are doing now, it’s usually a prelude to a big move. The direction is uncertain. But what we do know is that if good news appears, the market is ripe for a big rally.

Meanwhile, the U.S Ten Year Note yield (TNX) is standing at dead neutral, as traders await this week’s inflation news. TNX is hovering near its 50-day moving average with the RSI dead neutral near 50. The BB’s are also starting to squeeze around yields, echoing the anticipation of something big happening that we’re seeing in stocks.

Our Momentum portfolio is well positioned and our new pick is poised to move higher, especially if there is a positive development in interest rates.

Thanks to everyone for your ongoing support. I really appreciate it.

Thanks also to all the current Buy Me a Coffee members and supporters. Special shout out to new members who now have access to the Sector Selector ETF Service, included, at no extra charge with your Buy Me a Coffee membership. Two new trades were posted yesterday.

For active trading, short term trading strategies, check out the Smart Money Passport.

For large potential profits with longer term holding periods in stocks check out the Smart Money Passport Weekender Portfolio.

If you’re thinking about day trading, my new book – Day Trading 101

– will get you started along the right path.

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