ESP Tuesday. Tariff Games Continue. Plus, a New Nifty Contrarian Trade.

It's a highly selective market. Stay patient.

The CNN Greed/Fear Index is still flashing some caution with this morning’s reading of 41, near the top end of the Fear extreme. This is a positive for the stock market. Yet, as much cover as a fearful environment can provide, it’s important to stay very selective. This morning’s trade meets that criteria, providing a nice contrarian opportunity.

Image courtesy of freepik.com.

Market Update

The New York Stock Exchange Advance Decline line (NYAD) continues to hold up better than the highly volatile major indexes and Bitcoin. NYAD is trading well above the support of its 50-day moving average and within striking distance of a new high.

The U.S. Ten Year Note yield (TNX) remains below 4.6%, despite widespread expectations of an inflationary spike due to tariffs, which have so far not lasted very long. This morning’s JOLTS job opening number came in well below expectations setting up a potential softer than expected January NFP number. A break below 4.5% would likely be bullish for stocks.

Our ESP portfolio remains well positioned with its holdings preserving their recent uptrends. Once the Fed does whatever it’s going to do and the market responds I’ll have a better idea as to when to deploy potential picks from my shopping list.

Bitcoin (BTCUSD) remains highly volatile but within its recent trading range. A sustained break below $90,000 would likely usher in further declines.

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

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