Beware: The “Black Candle of Death” Just Appeared
I’d like to share with you an important message that I posted inside The War Room yesterday.
At 12:32 p.m. ET, I said…
For proper context, consider what was happening at the time of this post…
Before the open, United Airlines (UAL) reported fantastic earnings.
The stock was up 5.3% on an upbeat earnings forecast for the current quarter amid a continued surge in travel demand.
Not only that…
Before the open, Netflix (NFLX) popped 12.2% after reporting that it had added 2.4 million subscribers during its latest quarter – more than twice as many as predicted (if you recall, NFLX had lost subscribers in the previous two quarters).
However, despite these two bellwether companies reporting strong earnings, the market still could not hold an early gain.
In fact, at the time of my post above, I saw a “Black Candle of Death” appear on a chart of the SPX.
In my experience, a black candle is a sign of exhaustion.
To me, it’s an early indication that a recent trend (in this case, an early upside move triggered for NFLX and UAL) has lost momentum.
Not coincidently, around this same time, Jeff Bezos came out with a warning about the economy, saying it’s now time to “batten down the hatches.”
Action Plan: Last week, Jamie Dimon issued a warning about the economy. Now Jeff Bezos has offered a similar warning. And even when major market names like NFLX and UAL are strong, the major market averages still cannot hold a gain. Add it all up, and I think we’ll soon retest the recent lows. Inside The War Room, we’re prepared for another market sell-off. And when I say “prepared,” I mean that we’re positioned to profit if the markets trade lower.
Given everything above, you need to ask yourself…
“Am I prepared to make money if the markets tank?”
If your answer is no, then you need to join our trading community. Your money is just too important. And luckily, you can join our War Room Open House right now – for free. We posted 16 winning trades at a 93.75% win rate during our last Open House event – so don’t miss it.