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The market stopped flinching

I'm seeing action that looks boring. It's not. Look at this week. We hit Iran, they hit shipping, we hit them again, two days in a row now. A headline like that a year ago would've sent everything reeling. And the market went up anyway. It barely flinched. It's almost like the boy who cries wolf. The more this happens, the less we feel it in the market. That doesn't mean the danger's gone. It means the market's heard this story before, and it thinks it already knows the ending. There's a rule underneath this, and it's the whole game. The market moves on uncertainty, good and bad. Not on news, on uncertainty. Something's got to be unknown for the market to react at all. And Iran isn't unknown anymore. We put them in a grip hold, they agreed to send their oil around the world, and every round of

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The market is a jack-in-the-box right now

The whole market is a jack-in-the-box right now. Wound tighter and tighter, ready to explode. And anybody who tells you they know which way it pops is guessing. I do not guess. I read what is in front of me. So let me show you what I am looking at. Pull up SPY and QQQ, the funds that track the S&P 500 and the Nasdaq. They are running the exact same pattern. A big move higher, then a breath, and now they are coiling into a pennant. A pennant is just price squeezing closer and closer together into a point, like the shape of a little flag. The tighter it gets, the bigger the move when it finally lets go. That is the jack-in-the-box. It is winding up, and when it pops, it pops hard. READ MORE I cannot tell you the direction, and I am not going to pretend

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A gap is the market showing you its energy

One of my traders asked me what a gap means. Great question, and most people miss it completely. They see a stock clear a level and go, cool, we're through, off to the races. Not so fast, my friend. How it got through that level is the whole story. So here is how I read it. A gap is energy. When a stock jumps over a level instead of grinding up through it, that jump is the market showing you it has fuel behind the move. That is the market talking to you. And I want you to learn how to listen. Stare at any long-term chart, up or down, and you will see it. The moves that last, the ones that go and keep going, they are built on gaps. Gaps are the technical gateway. No gap, no go. Let me make it plain. A stock can close a

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