Reason #248: We analyze historic market events LIVE.

As if you need any more reasons than “to trade profitably” and “find money-making trades every day,” yesterday’s Pump Up the Close show proved the value of tuning in whenever we’re live on air.

Right as the show started, Apple broke through a key support level on its volume profile.

This was one of those “where were you when it happened” moments. A defining moment in my career, for sure.

But why?

Because Apple is the current market leader. Where it goes, so goes the market. 

In October, I shared the most important chart of the year.

This is Alcoa’s chart from 2007-2008. Back then, Alcoa was the market leader. 

As you can see, for much of those two years, AA chopped sideways. But then, in September 2008, it broke support. It saw a brief dead cat bounce and then just collapsed.

At the same time, this is what SPY did…

While the general market suffered, Alcoa remained undecided. 

But, once AA picked a direction – once it broke that support – the general markets tanked right alongside it.

Where the market leader goes… so goes the market.

Apple’s chart is the spitting image of Alcoa’s 2007-2008 chart.

And here’s today’s chart for SPY. 

Since I discovered the similarities between Alcoa, Apple, and SPY back in October, I’ve been monitoring Apple closely. 

Yesterday, it finally chose its direction.

Here are those charts again, side by side, so you can see more easily how much alike they are.

This means we’ve just entered the last leg down in this bear market. It’s total capitulation.  The first quarter of 2023 is going to be brutal for investors. 

But as day and swing traders, we’re going to stick with our game plan. That is: 

  • Always tune out the news and noise.
  • Stay unemotional about trading.
  • And use the volume profile to find opportunities and grow our accounts in leaps and bounds.

Watch the replay of Pump Up the Close from the day Apple broke through a key support level on its volume profile below.


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