Good morning:
S&P 500 Futures continue to rise thanks to strong capital flows back into U.S. stocks. Markets are still pushing higher, aided by the non-QE support we saw last week, a dip in bond prices, and optimism over U.S. trade.
Again, we told you live on air that momentum had returned to the market… on April 23 and showcased the strong insider buying that helped aid a major policy shift in trade on April 10.
So… what do investors do now?
First, remember the pattern we’ve discussed repeatedly to identify bottoms and a return of capital to the market…
Second, be ready to trade on Third Friday (today)…
It’s a key day of options expiration… all while markets prepare for a vote on a massive tax bill that would juice corporate balance sheets and drastically expand U.S. trade deficits (remember… that creates a unique situation for investors).
I’ll talk about the big macro stories… the headlines and more… in our live show.
Tune In, Tune Up
Our momentum signal turned positive for the S&P 500 on April 23, aided by big rallies in Tesla (TSLA) and other big tech stocks. A few weeks later, the market is pushing back toward all-time highs…
Remember—markets are driven by capital, and according to CrossBorder Capital's measurements, we’re seeing record levels of it sloshing around.
This is good for risk assets.
Now, we’re entering a period of questions. I want to walk you through our simple reading on momentum this morning… and show you the names we will target on the short side when the S&P 500 has its next breakdown… (and what that will look like).
Who’s Breaking Out? Who’s Breaking Down?
It’s a really important time to watch smaller-cap stocks with high liquidity. These are the names that will be active using VOLUME WEIGHTED AVERAGE PRICE.
or VWAP…
This is a terrific day to trade VWAP… especially on small-cap breakout names. I’ll show you exactly how to set up VWAP on your screens… show you the small-cap stocks to trade today… and give you a few ideas on options trades in higher-volume stocks.
A Look Ahead to Next Week
Next week, we’re focusing on insiders—but not just any insiders… We’re tapping into massive investors with more than $100 million in assets and showing you exactly what they’re buying and selling. Most people have no idea what to do with insider buying and 13D or 13F filings.
But I’ve got all the academic data to back up the trades, and I’ll show you a preview of what you can expect when we’re trading live next week.
Plus, you’ll get a VERY special offer to join us for a month. No questions asked.
I want you to see the power of these strategies and how they can enhance any stock or options portfolio.
Or be left behind on this great trading day.
Stay positive.
Garrett Baldwin