Good morning:
I hadn’t seen a market move like this since mid-2022. But yesterday’s Fed selloff, mixed with a huge swell of selling pressure on the Russell 2000, has me on edge a bit.
Retail fears about the economy and the possibility of no rate cut in September weren’t the only things that spooked investors. It appeared that Fed Chair Jerome Powell suggested that a rate hike could have been in the cards.
This also accompanied two dissenting members from the Fed… marking the highest level of disagreement on interest rate policy in three decades.
It’s all setting up for a wild storm here in the markets. Our S&P 500 signal remains in play… but it’s the Russell 2000 that looks like a potential problem in the coming days and weeks. This index DOESN’T carry any of the big tech names… and it doesn’t benefit from widespread passive investments or outlandish leverage…
It just trades… and with so many names on the Russell representing the “Zombie” traits that make them dangerous… this market could see a huge divergence again.
Yesterday’s earnings reactions in Microsoft and Meta were one for the history books. The kind of moves that don’t just make headlines, they make and break fortunes in minutes. Days like this are why you need to be with the right trader for earnings volatility.
Get in the room with me this morning… at 8:45 ET. I’ll explain everything…
I’ll tell you about the top breakout stocks… and turn my attention to the breakdown stocks with the Russell hovering at key moving averages…
And later today, when the earnings madness fires up again, you’ll want to be in the right room for that too. This is not a stretch of the market you want to trade blind.
The show is free… the picks are free… all you need to do is get active with me.
Stay positive,
Garrett Baldwin
If you haven’t seen Blake break down how he trades one market with a 12-hour head start on every move, it’s worth a look. No noise, no clutter — just a clean, structured way to be positioned before most traders even wake up. Watch the replay here.
