Money

When Will the Markets Bottom? Watch This Key Level

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Editor’s Note: Investors are looking for answers…

They want to know when markets will bottom. While it’s impossible to predict the future, there are key indicators we can look to for guidance.

In today’s guest editorial, Bryan Bottarelli, Head Trade Tactician of Monument Traders Alliance, tells us about one critical support level he is looking to for answers.

(Today’s article originally appeared in Monument Traders Alliance’s free e-letter, Trade of the Day.)

It pays to listen to Bryan’s trading insights. This past week, he went nine for nine, with a 27.59% average weighted gain in his real-time trading platform, The War Room. The Nasdaq lost 2% over the same time span.

And if you want to see what he is doing to dominate these markets, Bryan is offering you FREE access to the War Room Open House next week from October 24 to 28 (from 9 a.m. to 4 p.m. ET).

The last time he did this, attendees had a chance to cash in 15 winners in five days… including an overnight double!

FOR FREE! No catch… no delayed billing… no BS.

Click here to unlock your FREE WEEK of access!

– Rachel Gearhart, Associate Publisher


It’s the one question on every investor’s and trader’s mind…

After a brutal September, will the markets find a bottom here in October?

And if so, when? And at what level?

Today, I’ll aim to answer those critically important questions in the simplest way possible.

It all revolves around small cap stocks.

You see, because small cap stocks are riskier than their large cap peers, they tend to hit their peaks before anything else.

Why is this?

It’s quite simple, really.

Small cap companies tend to be more sensitive to changes in the economy than larger companies – which means they respond more dramatically in times of economic growth and expansion.

Obviously, that’s great for good times.

However, when the pendulum swings back and times get tough, small cap companies are impacted just as negatively on the downside.

As a result, small cap stocks typically hit their bottoms before their large cap peers.

With that in mind, let’s see where the Russell 2000 small cap index is trading.

As a tracking device, I’m going to use the iShares Russell 2000 ETF (NYSE: IWM).

Check out the chart below…

Chart: iShares Russell 2000 ETF Four-Month Performance
As you can see by my annotation, $165 has been a key level of support for the small cap sector since July. If it holds again here in October, it could establish a double bottom.

That could be your early indicator that the major market averages are close to setting their lows for the year. This is the level I’d use to determine whether it’s time to buy the dip… or whether stocks have new lows to set in the fourth quarter.

Want More Insights and Trading Ideas?

If you want to see how we will track and react to this key small cap indicator above…

And how we are reacting to these volatile markets with success in real time, then listen up…

Next week, my trading partner Karim and I are opening the doors of The War Room so anyone can try – TOTALLY FREE.

This could potentially be the BIGGEST event of the year for the security of your portfolio…

Don’t believe me? Well, just check out our previous Open House track records…

Chart: Previous War Room Open House Winning Streaks
Each time we’ve opened the doors to the room, attendees have walked out with at least eight winners, and we’ve maintained at least an 80% win rate.

We teach and use strategies in The War Room that win regardless of the market.

This past week, we went nine for nine, with a 27.59% average weighted gain. The Nasdaq lost 2% over the same time span. And in September, we won on 25 out of 28 trades, for an 89% win rate.

And next week, we’re gonna amp it up!

There’s a huge list of MAJOR companies expected to report earnings that week… We’re talking about over A THOUSAND companies.

If any of these earnings announcements leads to a live, real-time War Room trade opportunity, you’ll see it unfold right before your eyes, and you’ll get a chance to cash in!

We’re expecting a perfect setup for one of our FAVORITE strategies in The War Room… Overnight Trades.

Any trading recommendations we send out next week are free for you. Totally free. No credit card required.

If you aren’t already a War Room Member, sign up for the event and enjoy your experience in the best real-time platform on the market today.

Don’t take my word for it – take theirs!

“Second week of trading in The War Room. Scored a 191% gain on EA $112 call overnight – in at $4.05 and out at $11.80. WOW!!!” – Charles

“Hot damn, Bryan! Just closed out my very first trade as a guest in The War Room. In yesterday MARA, 4/16/21, 52 CALL at $1.89; out this morning at $4.10. That’s a 117% profit! Yippee!!!” – Joe S.

“I know this is not the thread… but Bryan wants us to brag. Just came in from golfing and sold DELL for 181% GAIN (just four trading days). Thank you, Bryan!” – Josh

Those are all real people making real trades based on what they saw in The War Room for FREE. This does not happen often, but when it does, attendees have had incredible opportunities to lock in wins, including overnight doubles. For FREE!

Action Plan: Don’t miss your chance. Sign up now and join us for a FREE week. There is no cost to join and no delayed billing. Join us here, and I will see you LIVE in The War Room next week.

Yours in smart speculation,

Bryan

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