Depending on what you read and on what day you read it, you'd either think we were entering a bear market doomsday or that we have been given a gift in the form of a 10% correction that is begging to be taken advantage of. There's Trump news (when isn't there?), Syria conflict, China trade wars, you name it. There are headlines every day designed to scare you and many are so scared they refuse to add risk and trade the market. With all of this volatile rollercoaster movement, a lot of money left the market, too scared of a potential crash to stay engaged.
February saw the third highest stock outflows on record, and this trend continued in March. This means that investors are taking their money out of the market, opting to sell out of their positions and hold cash. As we noted before, money coming out of the market in this fashion makes it much more difficult for the market to crash, as there isn't enough ownership to cause a serious decline.
Not only that, but a lot of the selling is already done. Who would sell at these levels that hasn't already sold? The market has teetered around here for an entire month, and if people were going to get rid of their positions, they would have done so. All that has transpired is that ownership of stocks has moved into stronger, smarter hands, and the weaker inexperienced traders have been shaken out.
The train is about to leave the station, and most investors are underexposed to the market at this level due to fear. Everyone is waiting to see where it goes before buying in, but if you wait too long you will miss out on what will be the most explosive stock movement of the year. These are the exact moments we play for, and buying options during a swift move is the best way to ensure profitability. I can hardly how bullish I am at this spot, and I am extremely confident we will be a good mark higher over the next several months.
The time to buy is now. Find your set ups, take your shots, and hold them with confidence. If you need some help and want to trade what we trade, sign up and become a member. Let's enjoy this move higher together.