3 Quick Notes Of Perspective On The Market This Week
How are we trading, what are we trading and what will the next catalyst be?
I’m stoked that my friends over at Sang Lucci Trading and The Steamroom, who I have known now for more than 10 years and have considered one of the best in the active trading business, are contributing to Fringe Finance.
I’ve always liked Lucci, Wall St. Jesus and the crew at The Steamroom because they are honest and upfront about losses when they get their ass kicked (look for a ton of videos like this out there) and don’t try to pitch themselves as more than they are: a group of guys with a little experience trying to find an edge and do their best.
I find their analysis sharp and worth considering, so I’m happy to bring it to my paid subscribers.
As usual, my disclaimer below applies as does Lucci’s full disclaimer, which can be read here, which all boils down to one key point: you’re on your own, this is not trading advice, only the opinions and banter of the authors, and always consult a personal financial advisor before making any financial decisions. Options are extraordinarily risky and carry with them the potential for massive losses.
It’s a short note this week, but a couple key points to wrap your head around if you’re going to be active in the market…
Right now, the market is moving in fragments.
Instead of a broad pullback that resets everything, we’re seeing a rolling correction, different sectors taking turns consolidating while others push higher. This makes it difficult to find clear directional trades because money isn’t rotating in a predictable way. Instead, we’re seeing selective positioning, with certain stocks holding up while others get hammered.
Take the mega-cap tech trade. The so-called "Magnificent Seven" are no longer moving in sync. Microsoft has been dead money for months, Tesla is stuck in a range, and even NVIDIA is consolidating after months of dominance. But at the same time, Apple has found its footing again, and some semis like Broadcom and Marvell are seeing isolated strength. This kind of uneven movement is what makes trading tricky right now as there’s no single theme dominating the tape.