Posted September 14, 2020
By Scott Stewart
Markets Are At An Inflection Point
Welcome to the Rude Awakening!
Hope everyone had a great weekend.
Lets get into this weeks market action
An Inflection Point
Today, we are going to focus on the 50- day moving average.
This market indicator works as a massive level of support and resistance.
And right now, most of the major indices are sitting right on top of this moving average.
Folks, this is a massive inflection point.
While you never know what the markets hold, we are NOT going to be in the near future where we currently are.
We will either break above the 50 day averages and continue to record highs or break below them and then its look out below!
So, we will be watching movement in the markets for the next few days which will give us a sense of which direction it will be heading.
Markets opened up this morning strong, so we want to play that to our favor.
So, what does that mean for us as investors?
Trading The Market Itself
Theres a lot of advantages of trading the indices themselves rather than trading individual stocks.
We dont have to worry about earnings reports company announcements no negative news pertaining to a particular CEO
But one major factor that is important to trading an index is implied volatility (IV).
Volatility gives us an ability to make money.
And right now, the IV is around 20% which is great news for trading an index!
So, how can we use this level of IV to our advantage?
We can use it to play the SPY ETF to the upside today for some decent rate of return potential
To find out about the specific trade I put together, click here to sign up for the free beta test of the Rude Awakening Pro.
Dont let volatility scare you away from making money.
When traded the right way, it can be your friend.
Thats it for today.
Well see you back here tomorrow!
Scott StewartEditor, Rude AwakeningP.S. Click here to sign up for the FREE Rude Awakening Pro beta test.