Saturday, April 26, 2025

10 Hard-Hitting Lessons From a Wild Week in the Market

The market threw punches — here’s how smart traders dodged and profited
 
   
     
Hey y'all,

What a wild ride this week. 🎢

We started the week staring down a pretty steep selloff, and by Friday, the market had pulled a Houdini — flipping the script and staging a rally that left a lot of folks scratching their heads.

Let's set the stage first:
• S&P 500 dipped hard early, hitting 5,158, but bounced back to finish at 5,525. 📈
• NASDAQ took a hit too, but roared back with a 6.7% gain by week’s end. 🚀
• Dow hit 40,113 for the first time ever — yep, despite all the drama. 🏁

There was a lot of noise: tariff talks, Fed jawboning, earnings jitters. But underneath the headlines, the market gave us some golden lessons. 🪙

Here are 10 real takeaways from this week:
 
1. First moves aren’t always the final story.
The week started ugly. But if you panicked and sold Monday morning, you missed the comeback. Emotional trading = account killer. ❌

2. Trade when the volume tells you to, not when your gut does.
Most of the "real" moves happened in the first 90 minutes and final hour of the trading day — classic trade zone behavior. Midday? Chop and fakeouts. ⏰

3. Key levels are your map — follow them.
SPY flirted with 513 early in the week. That line held like a steel wall, and once buyers defended it, you knew shorts were on borrowed time. 🛡️

4. Leaders lead. Period.
When the bounce came, it was tech (especially NVDA, AAPL, and QQQ) dragging the market higher. Always watch the generals, not the foot soldiers. 🏇

5. The tape doesn’t lie.
You could feel the momentum flip Wednesday afternoon. Tick readings, advancing issues — it all shifted. Pay attention to those tiny signs. 👀

6. Sitting out is a position too.
If Monday and Tuesday looked messy to you — good. No trade > bad trade. Patience was rewarded by a much cleaner Thursday and Friday. 🙌

7. Bad news isn’t always bad for stocks.
Tariff threats, Fed spats... the market shrugged it all off by week's end. Sometimes, the reaction is more important than the news itself. 🤷

8. Stay flexible or stay sidelined.
If you came into the week thinking "only short," you probably missed the long setups that exploded midweek. Adapt or get left behind. 🔄

9. Watch the relationships between markets.
Bonds were stable even when stocks were diving early. That was a quiet clue the selling might not have real teeth. 🦷

10. Momentum breeds momentum.
Once SPY and QQQ cleared early resistance Thursday morning, it was off to the races. Entries became obvious — you just had to trust the breakout. 🏃‍♂️💨
 
Last thought:

Weeks like this separate gamblers from real traders. 🎯 If you stayed patient, stayed observant, and kept your cool, you came out stronger — and probably richer. 💰

One of our favorite tools for determining Long, Short, or Out is the Market Timing Indicator.  Tom sat down this week with Nate Tucci and discussed how it can help you in your trading.  They also shared 5 stocks that you should take a look at.  Check it out here.

Trade to Win,

The DTI Team
 
   
 
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