Sea State 7 in the US Market
I used to be in the Navy about 20 years ago.
Each time we go out to sea, we pay close attention to the "Sea State". It is a measurement of how "volatile" the sea is on a scale of 1 to 7, 7 being the ship is literally being tossed around mercilessly in high and tight waves. This has been how the US market felt like this week so far, hasn't it?
All the uncertainties surrounding the Trump tax bill, all the possible and catastrophic consequences of such a tax bill hitting the wire everyday has thrown the stock market into complete turmoil. Big positive openings ending in significant negative closes, tech stocks hit mercilessly... all these volatility is definitely giving a lot of people sleepless nights this week so far, hasn't it?
However, if you look at the overall pattern of the market so far, it really doesn't look at scary as it seems when you see your money being tossed around. The market has been up and up since August and has been long overdue a nice pullback like what we are witnessing right now. In fact, the pull back by the Nasdaq doesn't look any different from the pullbacks that it has done back in September, August etc, just a normal pullback along a strong and healthy bull trend.
As such, I don't see any reason why the market won't turn around from here into yet another new high especially with Trump pushing through with the tax bill. Yes, every single controversial bill Trump has pushed through so far has invited reports on how potentially catastrophic it can be but what did the stock market do on all of those reports? Just keep getting higher as long as Trump keep getting his way and I don't want to bet against that.
In fact, me and my Master's Stock Options Picks subscribers are sitting on some pretty decent gains so far on our 5 existing call options positions we put on since last week in anticipation of this rally. If you missed out profiting so far, you really really need to just join me for $1 and get it over with.
For now, the market remains in all out bull trend.
Each time we go out to sea, we pay close attention to the "Sea State". It is a measurement of how "volatile" the sea is on a scale of 1 to 7, 7 being the ship is literally being tossed around mercilessly in high and tight waves. This has been how the US market felt like this week so far, hasn't it?
All the uncertainties surrounding the Trump tax bill, all the possible and catastrophic consequences of such a tax bill hitting the wire everyday has thrown the stock market into complete turmoil. Big positive openings ending in significant negative closes, tech stocks hit mercilessly... all these volatility is definitely giving a lot of people sleepless nights this week so far, hasn't it?
However, if you look at the overall pattern of the market so far, it really doesn't look at scary as it seems when you see your money being tossed around. The market has been up and up since August and has been long overdue a nice pullback like what we are witnessing right now. In fact, the pull back by the Nasdaq doesn't look any different from the pullbacks that it has done back in September, August etc, just a normal pullback along a strong and healthy bull trend.
As such, I don't see any reason why the market won't turn around from here into yet another new high especially with Trump pushing through with the tax bill. Yes, every single controversial bill Trump has pushed through so far has invited reports on how potentially catastrophic it can be but what did the stock market do on all of those reports? Just keep getting higher as long as Trump keep getting his way and I don't want to bet against that.
In fact, me and my Master's Stock Options Picks subscribers are sitting on some pretty decent gains so far on our 5 existing call options positions we put on since last week in anticipation of this rally. If you missed out profiting so far, you really really need to just join me for $1 and get it over with.
For now, the market remains in all out bull trend.
posted by Jason Ng at 1:22 AM
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