There are only seven weeks of trading left for 2025. But there’s plenty to play out…
Both the Nasdaq and S&P 500 peaked at all-time highs at the end of last month. Then they rolled over earlier this month and experienced a rare down week last week.
They are now tracking around their 50-day moving averages – a key level to hold if this rally is to remain intact.
Against that backdrop, we now have just 30 days until the Federal Reserve’s next meeting. Just two weeks ago, the probability of a rate cut was around 92%. Then that dropped to around 62%.
Meanwhile, there appears to be a compromise in Washington as the government shutdown hits its 40th day. Just one byproduct has been thousands of canceled or delayed flights, bringing travel around the country to a near standstill.
The trick, as hard as it is right now, is to look beyond all the noise.
We need to be prepared because plenty of swings lie ahead…
When you have a clear view of the market, it can be difficult to trade the other side…
For example, in a bear market, it’s hard to consider a long trade. You’re scared it will get pulled down with all the other stocks. Likewise, in a bull market, it can be challenging to short against the prevailing bulls.
But being able to trade against the grain, so to speak, is an important skill…
Instead of forming a view about the market more broadly, we can focus on finding the next trade setup. In my case, I look for stocks that are overbought (or oversold) and vulnerable to a reversal.
Our view needs to focus on the potential success of the next trade – not what the broader market should do.
By only having a view about a particular trade, you are not locked into a fixed macro theme. You can be nimble and take profits on short-term countermoves against prevailing trends.
And this becomes even more crucial in swinging markets…
As a trader, you can’t stand in front of the market. You always have to respect the price action, no matter how much you disagree. Trying to prove the market wrong is a surefire way of going broke.
That’s why, throughout the rally, I have remained light with my short positions – even though I thought the broader market was way overbought.
Instead, I only recommended short trades where I had clear technical signals showing me that a stock was way overbought.
I didn’t recommend short positions just because I was convinced that I was right about the market’s trend. That’s a low-probability way of trading.
Think of the folks who shorted Nvidia and Palantir just because they thought they were right. Ouch.
But I don’t want to risk capital chasing overpriced stocks just because everyone else is piling in. That’s just another form of gambling.
Instead, I’ve remained extremely cautious and disciplined. And I only consider trades with the strongest setups.
As we fast approach the end of a very busy and challenging year, that’s something to keep in the forefront of your mind.
Happy Trading,
Larry Benedict
P.S. A while back, Richard H. sent us this message:
“First 26 trading days, and my profit is now up to $52,014. My profit rate so far is more than four times my maximum salary when I was working 40 to 80 hours per week.”
Charles T. wrote: “I am up close to $40k in the past two months!”
And Mark G. reported: “In 7 days, my profit is $8,250. An unbelievable service, worth every penny.”
This is all thanks to a trading strategy I learned on Wall Street. And now I have supercharged this strategy with a calendar of prescheduled opportunities called “Trump’s 24-Hour Profit Windows.”
With this calendar, you can see your profit opportunities lined up months in advance… and potentially collect hundreds or thousands of dollars in ONE trading day with ONE ticker, over and over again.
If you’d like to know how it works, I revealed all the details during an exclusive interview last week.
At the end of the interview, I made a special one-time offer that could change everything for you. This special offer ends on Wednesday, November 12.
Click here to see the replay before your special offer expires.
Reading Trading With Larry Benedict will allow you to take a look into the mind of one of the market’s greatest traders. You’ll be able to recognize and take advantage of trends in the market in no time.
