The market is being backed into a corner as speculators begin selling off their stocks.
But listen up – the volatility permeating the market this week isn’t anything new. In fact, in the past year, retail traders like you have actually created a permanent state of volatility that’s completely transformed the financial world.
For the first time ever, you’re controlling the market – and it’s time you took your share of the cash. Want to take financial power into your own hands? Well, you can. And it all starts right here.
Now, I joked that we wouldn’t see “sell in May” activity at least for a few weeks, but this morning’s consumer price index report showed that consumer prices have rocketed 4.2% – the fastest rate since 2008.
Naturally, this has caused another wave of sellers to enter the market.
It’s made worse because of the “buyer’s strike” that you and I have been discussing for the past month.
The market only rallies higher when buyers crowd out the sellers.
But for the past few weeks, we’ve seen buyers sitting on the sidelines. They won’t even buy the dips.
This spells trouble for the short-term trend.
I’ve noticed a severe lack of volume on major ETFs, and their largest component companies have begun dropping yet again. A very strong signal that the buyer’s strike is continuing through May.
Unfortunately, things are turning more dire, since the only volume we’re seeing is on select selling surges.
Adding to the pressure, we’re entering a more tepid part of the earnings season as the “headliner” companies are now finished dazzling Wall Street.
But this is turning the spotlight on what I expect will be the biggest opportunity of the earnings season.
For starters, this negative market movement has revealed a very “strong defense” we can make to protect and grow our portfolio at the same time.
But it gets better.
Small cap and retail companies will start to own the after-hours news cycle as the earnings focus shifts to this group, and this is presenting a few “trick plays” we can use to make more money.