Greetings from New Orleans, Louisiana!
I’m writing to you from my “hotel” office today, getting ready to take in sessions here at the New Orleans Investment Conference.
And I’m staring at a sticky note that takes me back twenty years.
It simply says “If it’s working, buy more!” – wisdom from my old hedge fund boss Bill that’s made me (and my subscribers) a lot of money over the years.
Let me take you back several hundred years…
Newton’s First Law of Motion states that an object in motion stays in motion unless acted upon by an outside force.
Watching the market’s momentum lately reminds me just how right both Newton and Bill were.
Today, I’m going to teach you exactly how to make money in this type of market — using the lessons I learned from these men.
Resist the Urge to Run Away
Take a look at the S&P 500.
The index is trading comfortably above both its 50-day and 200-day moving averages, showing both short-term and long-term upward momentum. This healthy technical picture comes as investors grow increasingly optimistic about Republican leadership in Washington, anticipating a more business-friendly environment with fewer regulatory hurdles and pro-growth policies.
When markets surge like this, it’s tempting to take profits off the table.
Trust me, I get that urge too!
But I’ve learned the hard way that getting too cute with timing can leave you watching from the sidelines as stocks continue marching higher.
Sure, there are always challenges in the economy (show me a time when there weren’t!). But right now, the market is trading higher as investors anticipate growth ahead. The technical picture remains strong, and money continues flowing into stocks.
Here’s my approach: Until we see those challenges actually show up in the market – dragging the S&P 500 below the 50-day moving average (my short-term trend barometer) or the 200-day moving average (my long-term trend barometer) – we’re better off staying invested in positions that are working.
That doesn’t mean throwing caution completely to the wind.
In my own trading account, I maintain some bearish positions as “insurance contracts” against unexpected events. But the majority of my capital is invested in bullish opportunities. And I’m actively looking for chances to put more cash to work.
How I’m Positioning My Own Money in This Market
Take a look at my current portfolio allocation. As you can see, I’m positioning myself to benefit from continued upward momentum while maintaining some defensive positions as hedges.
Newton understood that momentum is a powerful force. In markets, that force is amplified by human psychology and institutional capital flows. As prices rise, more investors are drawn in, creating a self-reinforcing cycle that can persist longer than many expect.
For now, the path of least resistance is higher. Until the technical picture changes or new fundamental challenges emerge, I’m staying positioned for continued upward momentum – while keeping those insurance positions in place, just in case.
Want to see exactly how I’m playing this momentum-driven market?
I encourage you to check out my Speculative Trading Program. For just $147 a month, you’ll receive real-time alerts every time I enter or exit a position in my personal account. Plus, you’ll get immediate access to all my current holdings and trading rationale.
I back this program with a 30-day money-back guarantee because I want you to see for yourself how powerful these momentum-driven strategies can be. (Many of my subscribers tell me they make back their subscription cost with a single trade.)
That’s all for now…
I’ll be in touch next week with insights from the investment conference.
Here’s to growing and protecting your wealth,
Zach