End of Q1 2023 and Market is Sinking
I hope you are having a safe trading day. We are in the final days of the first quarter of 2023. How have you been doing in the first 90 days of the year? Are you on track with your personal and financial goals? Usually, the first 90 days can give you a good glimpse of how the rest of the year may go, and so if you are getting away from the goals you set for yourself, make sure to take a moment and realign. This morning, I woke up late, but was able to catch a nice reversal on TQQQ. I recorded the recap with the king of reversals himself, Aiman. Make sure to catch the recap here.
The question on everyone’s mind is that if there is a recession on the way, how will growth be impacted. Yesterday, we posed this question to John Carter, the legendary options trader, in our new show, Chat With Pros. He responded that he does not believe the market will go much lower and that there will be a consolidation at these levels. He also mentioned that so much of the bad news is already priced in.
On the other hand, the recent banking collapses have really put pressure on credit and tightened the lending standard. The chart below shows that whenever credit turns negative, with about a 6-month lag, growth and the GDP turn negative as well. What do you think? Do you think we will see a recession and SPY will move lower, or do you agree with John Carter that we are going to be range bound for the foreseeable future?
As mentioned above, we are starting a new series on our YT channel called Chat With Pros, where we will talk with the best of the best people in the market. So far, our guests have been Dennis Dick, CrédeSheehy-Kelly, John Carter, and Callum Thomas. Who should we next invite to the show? Who are some of your favorite traders who you would like to see interviewed soon? Make sure to subscribe to our channel and watch the most recent episode with Créde.
Tonight in our Wednesday Psychology webinar, Mike will present a brand new topic: how to find the trading strategy that is suitable for you. Many of our traders initially try out the ORB Strategy because they want to follow me. But soon afterward, many realize that their personality might not be suitable for that strategy and then they begin to develop their own unique way of looking at the market. As an example, Thor, Aiman, and Peter all started with ORBs, but soon developed the strategies that best suit their strengths and personalities. This is a very important webinar and I encourage all of our members to join us tonight at 8pm ET.
There are only a few days left in the first Q of 2023. Make sure you are managing your risk in order to close this quarter strong.
To your success,
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