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Quick Takes: This Tells Me “Stay Bullish!”

Quick Takes: This Tells Me “Stay Bullish!”

Today’s Quick Takes comes in the midst of a wild week.We had the worst Black Friday stock market performance in at least 70 years as investors panicked over the COVID-19 virus.Then, Fed Chair Jerome Powell spooked markets by talking about inflation and having to taper sooner than expected.If it isn’t a pandemic, it’s the Federal Reserve dragging stocks lower in an otherwise strong market.What we’re seeing right now is purely reactions to headline news. Not actual impacts from these headlines… just the fear of what they could bring.And as a result, stocks are getting whipsawed around daily.So how do you trade in a volatile market like this?

For me, the answer is simple — stick to what you know. Stick to the same strategies that worked before, and they will work again.In this choppy market, things may feel like they just don’t work. Because missing out on the overnight gains you might be used to, and taking a few losses, isn’t fun.But by sticking to what you know, you can come out on top in the end and not get caught taking flyers on overnight swings.And that’s what I want to get back to today, in my Quick Takes video. I’m sticking to what I know best — the chart patterns and signals that have worked for me for years — and using them to find brand-new opportunities.

Quick Takes on 5 Hot Stocks

I got five stocks I want to take a look at today — hot stocks making big moves.Tesla (TSLA), Amazon (AMZN), Meta (FB), and more…Just click here or the video below to watch my latest Quick Takes video.

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I’m SUPER bullish right now…Going back to when the pandemic started, the Federal Reserve was a key indicator for me. Their actions — slashing interest rates down to zero — told me to turn bearish when most were still expecting stocks to quickly turn higher. Investors weren’t prepared for the imminent drop that was coming.And now, the Federal Reserve is telling us to be bullish.The fact they’re worried about inflation and rising prices, means that we are moving away from COVID-19 worries and on to the usual problems for a growing economy — how to manage the rapid rebound.That, my friends, is something that can pave the way for stocks to head higher for months to come.Here’s the bottom line: don’t get spooked by these headline swings. Stick to what you know and watch the Fed.Right now, what I know tells me to stay bullish.Regards,Chad Shoop, CMTEditor, Quick Hit Profits

Chart of the Day:It Really Isn’t That Bad

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(Click here to view larger image.)

Today I wanted to zoom out on a chart we haven’t revisited in quite a while, the SPDR Technology Select Sector Fund (XLK).This exchange-traded fund (ETF) holds a basket of technology companies. Sometime earlier this year, I pointed out a massive rising wedge that’s been forming on the XLK chart.XLK broke out of the pattern this past summer, with a couple severe retests of the former resistance as support in July and August. It fell back into the pattern in September, tested the rising support once again in early October, and finally broke out again in late October.That brings us to where we are today.The last week of market action has been ugly, there’s no doubt. But when you zoom out like this, you can see just how much progress stocks have made in the past couple months alone.We’re revisiting levels first seen less than a month ago as we open today’s session. Big whoop!And even if we fall all the way to the former resistance line at around $162, the bull trend is still intact.As I’ve been preaching lately, keep an eye on the 20-day and 50-day EMAs, as well as the 100-day MA. If the 20-day keeps catching XLK as support, the current bout of volatility could end soon.What we don’t want to see is the EMA crossing below the 100-day MA. A sustained break below that would be a significant trend change.Regards,Mike MersonManaging Editor, True Options Masters

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