Don’t Stay on the Sidelines... Be a Referee

The market is suspiciously stuck in a holding pattern. [Jeff Clark's Market Minute]( Don’t Stay on the Sidelines… Be a Referee By Eric Shamilov, analyst, Market Minute Three weeks ago, all anyone could talk about was a recession. The S&P 500 was trading under 3900. But this wasn’t the time to sit on the sidelines or to sell your portfolio. This was a time to be a referee and call “foul” on the market for overreacting to the possibility of a recession without enough evidence… A fast and furious rejection of that theory came when the market rallied 7.6% in 8 days. It topped out around 4200 in the futures market on Memorial Day. Since then, it’s been noticeable (and even comical) how all those fear-based headlines magically disappeared. Recommended Link [10-Second Trading Demo Stuns Everyday Americans]( [image]( Could one little-known financial maneuver get you on the path to double or even triple-digit gains? According to one financial expert, the answer is yes. He explains everything [here]( – including a “10-second demo” of this strategy in action. [Click here for all the details.]( -- I’m not saying they should come back. In fact, at the lows, [I called “foul”]( on the bears for bringing the market down without complete information. But lately, the market is suspiciously stuck in a holding pattern. And as it stagnates, my concerns grow for the investors who chased the highs of the recent relief rally. That’s because it seems that this recent rally may have reeled investors closer to 4200 than 3900. Let me explain… On [May 24]( I explained why 3900 was a great area to buy using an analysis of volume distribution for each price level. Here’s an updated version of that chart… [chart] [(Click here to expand image)]( You can see how a triple bottom was hiding in the volume at the 3900 level. Meaning, the S&P 500 found support at 3900 three times in May. (The red sections represent days where the market closed lower, while the green sections represent days where it closed higher.) But here’s what concerns me now… When you combine all the recent price action since the lows, the volume profile shows investors chased this rally near the highs around 4125. In the chart below, you can see how all that volume accumulated around this area… [chart] [(Click here to expand image)]( This is exactly why we’re stagnating. The buyers already bought, just at the wrong price. With the Volatility Index (VIX) still above 25, a Fed meeting next Wednesday, and a big quad witching futures and options expiry next Friday… prices are guaranteed to fluctuate heavily. That means stop losses are likely to get triggered at the wrong time. Typically, the longer it takes investors’ new positions to turn profitable, the more likely it is to trigger a stop loss. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. In last week’s essay, I called for the markets to do a whole lot of nothing for a while. The volume profile above gives me more confirmation that we’re going to do just that. And to be clear, “a whole lot of nothing” means prices will fluctuate with big, loud intraday ranges… but ultimately stagnate. That’s why I’m eyeing a retest of the 3900-3975 area. The chart shows a lot of volume was traded here. And I’m anticipating that one of the aforementioned events will scare the market enough to get prices back there. [Disturbing In-Store Footage Exposes $269 Trillion Financial Crisis]( But any retest of those levels that was caused as a result of purely technical situational triggers – like the coming options expiry, a selloff on a lagging indicator like the consumer price index (CPI), or even next week’s Fed meeting – will likely just be an opportunity to play the range back to the upside. Regards, Eric Shamilov Analyst, Market Minute Reader Mailbag In today’s mailbag, Earnings Trader member Al thanks Jeff… Hi Jeff, I made about a 150% gain on a call you were closing out before Memorial Day. I wasn’t able to sell until Tuesday after the holiday, but it was for $241 after paying only $102. Awesome work, Jeff. Thanks! – Al T. Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… [Buffett BOMBSHELL: Huge $912 Million Mistake Coming??]( $713 million… That’s how much Warren Buffett lost back in 2020. Because he didn’t listen to one man… Jeff Brown—a tech analyst who’s picked the #1-returning tech (or mega-cap tech) stock four years straight… 45 days before the crash of 2020, Jeff warned a pullback was imminent. Then, on March 17 – at the very bottom of the crash, when Buffett was selling – he told people to stay calm and not panic… Buffett later admitted he’d made “a mistake”… But now, the “oracle of Omaha” is [on the verge of making an even bigger one.]( Jeff Brown has identified 10 stocks that are at risk of falling up to 80% more… Even with this recent tech crash! [See Jeff’s urgent warning now.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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