Taking a step back and looking at how this latest variant will impact the markets over the next few weeks can be daunting but is a worthwhile effort. Volatility is still high as everyone waits to see if this next phase of the virus will continue to cause more shutdowns and restrictions or if the studies being done will indicate the current vaccines are effective on Omicron and its symptoms are milder.

We don’t have to be a virologist to set up your next trade. We can calculate some high probability moves the market will make by looking at the way traders have reacted to these conditions in the past.

To start, Omicron is just one factor moving the market. We also have strong jobs numbers and the end of the year with traders taking trades related to tax strategies.

Advertisement - Don't settle for less. Grab Breakout Trades That Use Panic To Your Advantage - Click Here to See How it Works - Limited time offer, just $1

Tech, like most sectors has had a good year but is thick into the current pull back. It is approaching a key point of potential support at its 50 day which could provide the bottom it needs for this drop. This type of dip that is then refilled to continue a trend is not uncommon. And these corrections are often triggered by a big news event that causes people to panic a bit and over sell. We will be watching closely to see how this week ends and see if we find solid ground at the 50 day and get a reversal to keep the trend alive.

If you want to see a proven strategy to spot these herd mentality discounts definitely grab Ian Cooper’s Trigger Point Trade Alert book. He walks through that patterns that indicate the panic is an overreaction and then shares the technical indicators that confirm it is a great opportunity to get in and grab a quick win.

Keep learning and trade wisely,

John Boyer


Market Wealth Daily