Hi Shoppers,
Here's where I think we're headed: 7,350 on the S&P 500 E-mini futures by next week.
The bearish divergence I was watching between the Relative Strength Index and the Emini didn't pan out. We traded down slightly for two days, but my pitchfork support held every single day for the last ten sessions.
That old resistance level became support back on April 17th, and price has respected it ever since.
That's not random. That's the chart telling us the bulls are in control.
Thursday's rally is the confirmation.
When buyers defend a support line ten days running and then push through with conviction, the path of least resistance points up. Our previous highs at 7,207 and 7,171.75 now flip to support, which gives us a clean structure to work with on the way to 7,350.
How To Ride This Move
Direction is one thing. Position sizing is another, and that is where most traders give back their gains.
I sure hope you caught Hans this week. He has a portfolio strategy that blows away the old 60/40 formula. That formula served investors well for forty years, but the math broke in 2022 when the 60/40 portfolio dropped 17.5 percent, its worst year since 1937. Stocks fell. Bonds fell. The diversification everyone was paying for stopped working.
It has not fully recovered. Since 2020, bonds have posted negative returns in 17 of the 19 months when equities dropped 2 percent or more. Vanguard now projects a 40/60 portfolio matches 60/40 returns with less risk over the next decade. BlackRock is telling clients to add alternatives. Morningstar keeps asking if the strategy is dead.
Hans has the answer.
You can catch the replay here where he actually gives us an actionable trade idea in Amazon (AMZN).
His record speaks for itself. He is the man you want to follow to beef up your account, and I am going to be trading with him.
The chart says we are going higher. Hans shows you how to own the move without betting the farm.
Catch the replay before it comes down.
Thank You For Reading.
See You Next Tuesday,
Licia Leslie