How I Made 10K Today: The Killer Stock Market Fakeout I Spotted And Acted Upon

How I Made 10K Today: The Killer Stock Market Fakeout I Spotted And Acted Upon

The stock market collapsed again today, following Friday's sharp decline and the hard bounce yesterday. Average investors saw the bounce yesterday and assumed this was a repeat of past drops and pops. Meaning, in the past six months, every drop was met with a pop that took the market right back up to new all-time highs. Today's sharp decline was definitely a shock to most investors but not to me. I saw this a mile away and acted on it by buying VXX yesterday just before the close of trading. My entry is Verified on my track record as $35.95.

What Did I See That Alerted Me To The Collapse Today?

It all goes back to interest rates, which have been the driver of every up/down move in the market since the Federal Reserve artificially deflated them. The Federal Reserve pushing interest rates down, has driven the stock market into a bubble. Interest rates rising, would obviously deflate that bubble.

Friday, interest rates broke out, thus the market dropped dramatically. Then the Federal Reserve marched out Fed govenor Lail Brainard to say there would be no interest rate hikes. The market loved her speech, surging two-thirds of the losses from Friday. The only problem was, interest rates did not fall with her speech. You read that right folks, she said the Federal Reserve was not going to raise interest rates and the rates did not reverse the pop from Friday. Why did the stock market still rally? Because investors heard her words and bought, rather than looking at interest rates themselves. Last night, smart money began to realize this (after I had realized it earlier in the day and acted upon it by buying the VXX). The result? A sharp stock market decline today and 10K in profits to me and those Users that followed my trade.

If you want to be a top notch investor, you must learn to look at the root cause of the stock market ups and downs. This will give you insight into the future trading action and help you achieve greatness. Profits will follow like rain falling from the sky.

By Anthony Jackson