Hey Traders,
The market’s been a wild ride lately — probably the most volatile I’ve ever seen in almost 40 years of trading.
Stocks are swinging 4, 5, even 6% in a single day.
That’s not normal, and it’s got everyone on edge. But if you know where to look, there are still some strong trends out there.
Let’s start with the basics.
I always look at the S&P 500 (SPY) first.
Despite all the chaos, the SPY is still holding a bullish position.
It’s above all three of my key trendlines — the green short-term, the blue intermediate-term, and red long-term.
It’s not at all-time highs, but it’s in a good spot. That tells me the broad market still has some strength and it’ll set the tone for stocks in general to follow along.
Next up is the Dow Jones (DIA).
It’s looking similar to the SPY, with some extra volatility thrown in.
Again, it’s above those key trendlines, so we’re still in a bullish stance here.
Now, the Nasdaq (QQQ) has been the most volatile of the bunch.
Tech stocks have taken a beating, and the QQQ dropped below its long-term trendline at one point as you can see on the chart.
But it’s bounced back and is above all three trend points again, even though it’s far from making new highs.
So, what’s the takeaway? We’ve got to focus on stocks that are still trending up, even in this crazy market.
GoDaddy (GDDY) is a great example — it’s been holding strong and continues to trend higher.
On the other hand, Tesla (TSLA) is in rough shape:
Apple (AAPL) came down hard, but recovered strongly:
And Nvidia (NVDA) looks like it’s ready to pop:
I’ve never seen a stock that’s more of a “coiled spring” than NVDA is right now.
I’m long NVDA, I’m not telling you to be long it. I’m just telling you I’m in it.
Summing It Up
In a market like this, it’s all about sticking with the winners and avoiding the losers.
Keep your eye on the trends, and don’t get caught up in the noise.
If you missed my 8 stocks that defied gravity I wrote about the other day, check them out here. Those are good ones to look at to see what a strong stock looks like.
Trade well,
Jack Carter
P.S. When the crash hit last week, I didn’t panic. I just traded my Recession Roadmap like I do every week.