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Stock Market

Why the Market is Crashing and How I Am Going to Win During the Quarantine

by

Ken here,

Today is April 15th, 2020 and the Market is crashing like crazy!

Take a look at this diagram from finviz.

Source: finviz

Man! That is a ton of red! The SPY dropped from $284 to $276 today!

Source: thinkorswim

These chart would scare most people instantly! I mean, look at these charts! Every single sector is down, and the one stock that is trending upwards is Amazon. AMZN is priced at $2297 at the time of this post. Not a lot of people can buy a couple of shares of AMZN at that price. Not to mention, it is only winning by 0.36%!

Talk about pennies on the dollar for your hard earned money.

However, I am not like most people, I am an experienced options trader. I am calm, I am reserved, I create a game winning strategy and I stick to my plan. I know exactly when to enter, and when I should stop my losses. I commit to my plan and have no emotions attached to the market.

The stock market is by far the greatest game in the world for people who want to develop a tenacious mentality for sticking to their plan. This is the mentality which separates millionaires from ordinary people, this is the mentality that elevates millionaires into billionaires.

If you can master this mindset, you are halfway to becoming a millionaire.

So again, I have answered the question in a recent post:

“Why is the market crashing?”

Honestly, I have no clue, nobody really does. Some big investor, institution, or a bunch of people decided to sell and lock in their profits from the previous weeks. This causes the supply of stocks to increase which decreased the demand. Hence, stock prices drop.

As people panic, people sell.

As people sell, stop losses pop, and the domino effect tanks the market.

That’s all there is. If you understand this, it will help you remain calm.

If you set aside the drop in the market, you can start to look for extremely good deals as the price of stocks are low!

Take a look at this trade I entered today on RCL. Royal Caribbean Cruise Lines. Pretty soon this trade is about to pay for my own vacation.

I may have to book my vacation here:

https://www.royalcaribbean.com/

Source: thinkorswim

This is awesome! The stock price dropped from $44 dollars to $35 dollars. I made an entrance on this stock around $35.88.

I purchased one $37 Call contract with the expiration date of 4/24/20 for about $330.

This stock is following my 5 elements of SUCCESS!

  1. Gravitational theory
  2. Trend Pattern Squeeze
  3. Support and Resistance
  4. RSI
  5. MACD

If you have read some of my other posts, after you see these elements on the stock. I guarantee you will know exactly what happens next after this.

I can’t wait to update you with the exit in the next coming days!

Stay tuned, learn more, ask questions. Become a 6 digit survivor. Check out the live stream.

Get Started Today

Join my robinhood team and get a free stock here

Learn about my Indicators here.

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Disclaimer:

I want to point out, I am not a registered investment adviser or broker/dealer. I am a highly profitable options trader who has been successful time after time, and I have changed the lives of many people through the art of trading on the stock market.

– Ken

How to Stop Being Broke by Knowing What Direction the Market is Heading

by

“Hey! Is the stock market going up or down?”

This is the number one question I get asked every time I mention that I trade stocks and options on the stock market.

My answer is always the same. The market will go where ever the market feels like going, and It doesn’t really matter which direction it is going. All you have to do is know in the short term, what direction the market is going, and exploit the quick gains.

Besides that, it is illegal to have inside information and know exactly which direction the market is heading.

Learn about insider trading here: https://www.investopedia.com/terms/i/insidertrading.asp

Warren Buffet said that the market is a giant pile of money that is constantly getting shuffled around. This is the case for the stock market, people are always putting their money in, and taking their money out. This causes stock prices to fluctuate up and down.

Today, I want to discuss the market as a whole for the past two weeks. The stock ticker SPY is a SPDR ETF which is composed of the top 500 companies listed on the stock market. This is also referred to as the S&P 500. There are other ETFS, but I want to focus on this one, because I use this one to get a feel for which direction I think the market is going next so that I can exploit some easy money and quick wins!

This chart was generated by thinkorswim for the SPY ticker from Friday 3/13/20 to Thursday 4/2/20.

I used 5 elements to identify and predict the next move for this stock.

  1. MACD
  2. RSI
  3. Gravitational Theory
  4. Trend Pattern Squeeze
  5. Support and Resistance

These elements are taught in my short video lectures for students of the January 2020 class. I also teach them on a daily basis as I enter and exit trades.

As soon as I saw these 5 elements, I alerted my students about the trade, and gave clear instructions on what to do. This is a preview of what the alert looked like.

Keep in mind, this is all on 4/2/20.

Look at what happened in the next few days.

The SPY followed the squeeze, rapidly exploded to $255 from $249 the very next trading day. The day after, it hit a high of $275! If you would have known that this was going to happen, you could have turned $400 into $2400 in 3 days by playing the call option on the 4/17 SPY $255 C.

Keep in mind, that is a 600% win per option contract. If you had $2000 or 5 contracts, this would have turned into $12,000 in 3 days!

Overall, I am very happy that some of my students were able to make use of the short squeeze and make some quick and easy money!

Happy Trading! I will try and regularly write reports similar to this so that we can have a journal of all our trades throughout the year.

Stay tuned, learn more, ask questions. Become a 6 digit survivor. Check out the live stream.

Get Started Today

Join my robinhood team and get a free stock here

Learn about my Indicators here.

Become a member and learn!

Newsletter Signup

Disclaimer:

I want to point out, I am not a registered investment adviser or broker/dealer. I am a highly profitable options trader who has been successful time after time, and I have changed the lives of many people through the art of trading on the stock market.

– Ken