January 23, 2022

Stocks finished the week with two days of selling, giving the Nasdaq a six-day vertical drop.

This six-day meltdown illustrates why timing must be more precise on the short side than the long side. There was only a one-day window for entry -- upon which we capitalized -- before price went into a vertical drop where short entries do not exist. This is a lockout market.

Our five open shorts which triggered six sessions ago, along with their MFE:

ProShares UltraPro Short QQQ ETF (SQQQ) +30%
ZoomInfo Technologies (ZI) +17%
Tuttle Capital Short Innovation (SARK) +16%
Zoom Video Communications (ZM) +13%
Microsoft (MSFT)

Over the past few years, we have learned just how valuable these leveraged ETFs can be, both long and short.

Otherwise, the vision I had for this service when it launched in November '18 was for it to be more than a long-only breakout service. Since then, we have added pullback entries and a short component for bear markets. Every so often, I have offered realistic appraisals where both successes and shortcomings have been discussed. Adjustments have been discussed and made to address the shortcomings.

At this juncture, neither long nor short sides are suitable for fresh-money positions. The Nasdaq is 15% off its record high; the S&P 9% off its high. We do not predict. There is no way of knowing whether this turns into a 40% bear market or something shallower. We will continue to follow our plan.

Kevin Marder

Trading Lessons
Introduction to the service (38:00)
Money management and risk management (20:27)
Bread and butter pullback (11:10)
Bread and butter pullback: Pt II (15:09)
Bread and butter pullback: Pt III (31:48)
Bread and butter pullback: Pt IV (30:16)
System R
Short-selling video (25:53)
Wyckoff spring setup (2:30) 
5-minute breakup test (8:01)