[Cash Out] Next IPO Poised to Pop!

Want a piece of the next Uber, Lyft or Pinterest when it IPOs?

Get your seat at the table and learn how you can capture these explosive moves before others!.

Join now to lock in Founding Member Pricing for a Limited Time!

Market lesson: When will this market top out?

Jason BondJason Bond ·

The news: The market keeps grinding higher, consistently making new highs despite seemingly everyone trying (and failing) to call the market top.

How to spot the top: I use a 5-day exponential moving average and overlay it on the market. When we have a hard close below the level of the 5-period EMA, that’s when the market is likely to step back. So Thursday — when the market opened below the line but closed above it – was a fake-out.

The chart:

The Relative Strength Index (RSI) – which shows the market to be way overbought — increases my confidence that a close below the 5-period EMA will do the trick. You don’t need to look at a million headlines and indicators, just wait for that hard close; until you see that signal, the Standard & Poor’s 500 will keep trending up, no matter how implausible that seems. It’s elementary but it works.

How to play it: Whenever we see the signal, put your stops in at the high; that’s nice and tight so if it doesn’t play out as expected, you stop out with a paper cut. The reward on this trade would be to see the S&P 500 – which you can play using the SPDR S&P 500 ETF (SPY) or with leveraged plays on the index — fall back to the previous resistance levels, giving you a nice risk-reward balance on the trade.


Jason Bond runs JasonBondTraining.com and is a swing trader of small-cap stocks.

You may also like

Exclusive System Tracks Wall St. Insiders

“Dollar Ace Simply Exposes Information That Wall Street Wants To Keep Quiet” Said Kyle Dennis
“One member, Wesley M., has already reported 360%+ gains in just a few short days. Don’t miss this!”
(Reserve Access Now)

“What Recession?!” Jason Bond nets $55,060 in realized profit in One Day

After going 6 for 6 on profitable trades recently, we caught up with Jason to ask how he did it.
Check out Jason’s exclusive interview revealing this tightly guarded strategy. (Watch Now)

RagingBull.com Co-Founder, Jeff Bishop, Launches High Conviction Trade Service

“We listen to our clients and we give them EXACTLY what they want, so we designed a service to deliver 1 trade, 1 time a week, with a 100%+ PROFIT TARGET, directly to your inbox every Monday before the market opens. (Read More)

Be a Better Stock Trader, Starting Today

Get the expert insights, tips and strategies you need to optimize your trading skills and profiles