Category: Patterns

The Only Way to Predict the FAANG Stocks’ Next Move

Yesterday marked an important day in the market – stocks finally turned positive for 2020.

Back in March, when stocks were crashing and circuit breakers were hit, many investors struggled to see this day through the money-draining mania.

But yesterday, we were there…

Until we weren’t.

By closing bell, the S&P and the Nasdaq had turned negative. The Dow was up a mere 22 points. And once again, we were reminded of just how unpredictable the market can be.

That’s why I wanted to share an exclusive video from my Youtube account, Tom’s Trading Room, with you today.

I kicked the week off with this video yesterday. You see, with the markets moving this fast, it’s important to take a step back. Because the only indication we have of the future is the past – as a pattern trader, I know that first hand.

And some of the biggest market moves come from the FAANGs – Facebook, Apple, Amazon, Netflix, and Google.

To see exactly what you can expect from FAANG this week, click here…


Independence Day Just Unearthed One of the Year’s Most Profitable Patterns

The Fourth of July may be over – but the profit potential that the holiday brings is just getting started.

See, today I want to tell you about one of the most lucrative patterns the market has to offer…

The holiday pattern.

I follow 10 holidays throughout the year that close the market for trading. And I’ve found that buying a stock or exchange-traded fund (ETF) before a holiday and selling it after is a proven strategy when it comes to playing this pattern.

And Independence Day brings one of the most accurate patterns of the year.

But in order to discover the best time to buy and sell, we need to look at backtested results.

Now that the market has reopened, here’s exactly how to harness the Fourth of July’s profit potential…


The Second Quarter Has Begun – Here’s Where Stocks Are Headed

When you’re stuck at home day in and day out, your thoughts tend to wander. And mine have been stuck on this market.

We’re more than 20% down from recent market highs – the flat-out definition of a bear market.

But at the same time, stocks have begun to rally. As I’m writing, we’re around a 20% retracement from recent market lows as well.

Now, typically, I wouldn’t buy this rally. But it’s definitely testing me…

Are we in the midst of a bear market or a bull market? Each side has a solid argument backing it up – but today, I’m going to tell you my take.

This is where the market is headed next


Three Simple Steps to Trading a Recession All the Way to Recovery

The Dow is on track for its best week since 1938 – but that doesn’t mean it’s all blue skies ahead.

Last week’s unemployment claims, released Thursday morning, soared to an unprecedented number of 3.3 million – the highest in history. Second place isn’t even close, with the previous high sitting at just 695,000 in 1982.

Never in my lifetime could I have imagined an event like this. With businesses across the country shutting down, the economy is in danger of plunging into a full-blown recession – and there seems to be nothing we can do to stop it.

The word “recession” is scary. But it’s not the end of the world… not even close.

In fact, you could come out of it even stronger than you were before.

Here’s how you can make a short-term profit on the market’s fall – and a long-term profit on its eventual recovery


The Market Just Revealed These Profitable Volatility Patterns

I’ve found a pattern in the market’s drastic movement these past few weeks.

It seems we’re in a constant downtrend. Markets will fall, sometimes as low as their limit-down price, just as the Dow did before the market opened Monday morning.

Then, with any good news, we see a violent pop – like the Dow’s 1% jump after the Federal Reserve unveiled unlimited asset purchases…

Only to resume the freefall again, shortly after.

Now, I expect this trend to continue. But it’s not the only pattern making itself clear right now…

In my latest update, we took a look at these patterns – and how we can use them both to save money and profit off the continued volatility.

You can check it all out right here


These Four Valentine’s Trades Are the Best Gift You Could Give

Ah, Valentine’s Day. A day filled with chocolate hearts, romantic comedies, and dinners at your favorite special-occasion restaurants…

Or, as some see it, a corporate- and Hallmark-spun fraud of a day created with nothing but money in mind.

I tend to agree with the latter – but I don’t say it with the bitterness that you typically hear behind the words.

Instead, I say it with optimism and excitement. Because there’s an opportunity at hand…

This year, Valentine’s Day spending is expected to be 32% higher than last year, making for the highest sales number in history.

The record-breaking number will have retailers swimming in profit. And if you know how to play it, you’ll be enjoying some extra cash of your own.

Even if you’ve always been against tomorrow’s holiday, now you have a reason to celebrate.

Capitalize on the retail rush with these four Valentine’s trades…


Turn 25 Cents into $17,500 with This Tesla Pattern

“Love the product, hate the company.”

Those are the six words I’ve always said when someone asks me about Tesla Inc. (NASDAQ: TSLA).

See, I have a Tesla, and it’s the best car I’ve ever owned. I have my own Model S to thank for getting me and my family safely out of the path of Hurricane Irma.

But the company is a different story, with the stock rising and falling on every word out of the unpredictable CEO Elon Musk’s mouth.

Now, I still love the product. But I may be changing my tune on the second half of my go-to statement…

The company has changed quite a bit since Hurricane Irma touched down in Florida two years ago. More specifically, the stock has changed. Since September 2017, shares have risen 128%.

Heck, in the past week alone, they’ve undergone a wild 40% price swing!

If you were a TSLA call option buyer last week, then you could have entered this week with an incredible, almost unheard-of 7,000% profit.

But if you weren’t, it’s not too late. There’s even more cash potential on the table…

Today, I’m going to tell you everything that happened with TSLA stock last week – and how to ensure you won’t miss out on this profit opportunity the next time it comes around.

Here’s how


How the Chief’s Super Bowl Win Could Move Stocks on Wednesday

In the case you weren’t one of the 100 million or so people tuning into Sunday’s Super Bowl LIV, then you missed the Kansas City Chiefs defeating the San Francisco 49ers in a fourth-quarter comeback to take home the Vince Lombardi trophy.

Now, my money was on the Chiefs, so I was happy. But not everyone felt the same – and I don’t just mean fans of the 49ers.

Investors have pointed to a pattern that shows when the National Football Conference (NFC) wins the Super Bowl, the stock market has a bullish year. But when the American Football Conference (AFC) wins, the reverse occurs – and the market turns bearish.

Now, the Chiefs are an AFC team. Meaning some investors are worried about where the market is heading…

But here’s the thing – I’ve done my research, and this indicator just doesn’t hold up. That’s why today, I want to look at an indicator that does.

This is one of the market’s best predictors – and it’s telling a different story than the Chief’s Super Bowl win


Three Steps to Keep Your Portfolio Healthy During the Coronavirus

This week saw a break in the market’s race to new highs, as the coronavirus turned stocks downward on fear of its impact on global economic growth.

But stocks didn’t stay in the red for long. On Thursday, after some back-and-forth movement, all three major indices made their way back up and closed in the green.

That said, this virus is far from over. It’s claiming more lives every day, and on Thursday, the World Health Organization declared the outbreak a global emergency.

Before we know it, stocks could take another dip. But don’t pull your money out of the market just yet…

Here are three steps to protect your portfolio against the coronavirus…