ON DECK FOR ROGER’S VIP TRADE ROOM: Monday-Friday: noon ET Time spreads: How they work, what qualifies and why they’re great for earnings, how to execute them, the type of order you put in, how to manage them and how to liquidate, the three most important variables, how to leg out in a worst-case scenario — and Kane will also drop by for a visit! JOIN HIM HERE! How to Spot the Sector Rotations That Can Make or Break Your Trades  When it comes to navigating the market, especially during volatile times, you can’t just rely on a surface-level view...
You have to start thinking three-dimensionally — really diving into how the market moves, what sectors are driving that movement, and what opportunities or pitfalls that might create.
Now, one of the most valuable ways to do this is by understanding sector rotation. You have to constantly be aware of where the money is flowing.
Because in this market, it’s not just about which stocks are going up or down, but why they’re moving in the first place.
For example, let’s say the S&P 500 (SPY) is coming down to a key support level. At that point, if you notice that the market is getting dragged down by speculative stocks — you know, tech names, chip-makers and high-flyers — but defensive sectors like Consumer Staples (XLP) or Health Care (XLV) are making new highs, it tells you something..
The market is rotating into safety, meaning investors are getting nervous and pulling out of riskier names.
In a situation like that, you might be tempted to jump into those defensive names as they’re hitting highs, thinking you’re catching a winning trade. But here’s the thing: If you believe the market is going to bounce off that support level, then the defensive stocks that just rallied might pull back when speculative stocks start to recover.
In other words, the defensive plays only perform well if the market keeps going down. If the broader market holds support and turns around, the money flows back into riskier, high-growth names.
So, what do you do? This is where the three-dimensional thinking comes in...
You need to evaluate what’s driving the market down, understand the flow of money, and then position yourself for where it’s going to flow next. If you expect the market to bounce, you wouldn’t want to load up on those defensive stocks. You’d want to start looking at the speculative names that have been getting hammered, because they’re likely to rebound as money rotates back into them.
It’s about connecting all the dots...
What’s the market doing as a whole? Which sectors are driving that movement? And most importantly, what’s your outlook on where things are going?
If you can answer these questions, you’ll start to see opportunities others miss — because they’re too focused on what’s happening right now, not what’s about to happen, and the market is always forward-looking.
This approach also helps you avoid bad trades.
If you’re watching the market sell off but you believe it’s going to hold a support level, you don’t rush to buy the first stock making a new high. You step back, look at the sectors driving the action, and think ahead.
It’s like playing chess — you have to plan a few moves in advance if you want to stay ahead of the market.
The bottom line: Thinking three-dimensionally means not just reacting to what’s happening in the moment, but understanding the underlying forces and positioning yourself for the next move.
I hope that helps! Roger Scott
Roger Scott Trading
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*This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. _______________________________________________ November’s Opportunities Await — and So Does This $500 Discount!
Years ago, Roger Scott had a lightbulb moment.
Like most traders, he started out leaning heavily on technicals and fundamentals.
Charts, earnings, ratios, moving averages… they’re all supposed to give you an edge. And sure, they can help…
But they come with a fatal flaw.
They only show you what’s already happened.
By the time the signal flashes, the stock has usually made half its move. You end up chasing instead of leading.
That’s when it clicked for him… if you’re going to hit winners…
You need a way to spot moves as they formed… and even better, before they started.
That sent him deep into the numbers. And what he uncovered was something most traders never consider…
Digging into decades of market history,
He found a pattern that repeats with eerie consistency…
Certain stocks have periods each year where they soar, often regardless of what’s happening in the broader economy.
That’s what he now calls a Wealth Window.
And if you can spot these windows… you’re in line target returns like… Now there would have been smaller wins and those that wouldn’t have worked.
But rather than follow lagging technical indicators and fundamental analysis…
These wealth windows can give you an edge that most only dream about.
Not only that, but we’re running a $500 discount that ends at midnight!
We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. The profits and performance shown are not typical. The trades expressed are based on historical signals from the Data Mining Software to demonstrate the potential of the trading tool. While we have been using the Data Mining Software with great success, we cannot guarantee any future results. _______________________________________________ | Today’s Top Sectors | Today’s S&P 500 CSI Leaders | | VanEck Semiconductor (SMH) | AMD (AMD) | | Technology (XLK) | JB Hunt (JBHT) | | Health Care (XLV) | Cardinal (CAH) |
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