Here’s how to prepare for the upcoming raging bull market, says bestselling author “Tao of Trading”

our Today’s call It comes from founder of the Tao School of Trading options Academy and author of the book of the same name, Simon Ree, who also sees now as a good time for investors to change their routines.

included in his book Bear market trading tips It’s a suggestion to stick with “more money than you’re used to keeping,” and lose sight of the traditional mindset that dictates eggs required “in a certain number of baskets,” Rey told MarketWatch in an interview on Monday.

Rather than asking where to put their money, he said, investors should educate themselves on “how to spot the high-probability moments in time to own stocks, own commodities, own cryptocurrencies, whatever they are.”

Then the process should be “I’m going to buy it, I’m going to run it, I’m going to set a profit target, and maybe have a few of these trades going through my portfolio every month or every month, with tenures,” said the Singapore-based trader, who has spent 25 years in private and investment banking. He worked for Citigroup and Goldman Sachs, “this year and just tried to make a return that way.”

The new strategy is becoming increasingly important as Ri prepares for a lot of volatility ahead. “The market is potentially tough here. I think stocks are preparing for a rally that will destroy short positions and make the bulls nice and comfy, before destroying the bulls with a subsequent big downward flow. I’ve never seen stocks celebrate the possibility of a recession quite like this before,” Reese Tweet last week.

Explaining that tweet further, he said calming commodity markets may fuel hope that inflation has peaked and the Fed will turn bearish, leading to stock gains. He adds that it appears markets have braced for an immediate recession, but strong labor and housing markets will provide a temporary buffer for now.

Those hopes could take off, or not, with June consumer prices Wednesday, which some see close to 9% annually.

“But the bigger picture is this: monetary tightening has led to a recession in all but 10% since the Fed was founded in 1913,” Rey said.

As for the bull’s destructive flow to the downside to pursue any rally, we may wait.

“I think once we’re sure we’re in a recession, the S&P 500 SPX,
-1.15%
It could be much lower than it is now, and the Fed will likely start easing again. I think that’s a long way down the path, and I don’t think the Fed is going to start easing until unemployment outpaces inflation as a concern today.

Our final word from Ree addresses what he sees as a blind spot among investors. “I think this buy-on-the-down mentality was so deeply ingrained, I think that by the time this bear market starts its course, people will have sworn off stocks for another generation…but this is going to be a buying opportunity.”

commotion

A new survey shows that small business owners have never been more pessimistic about the future of the economy. Later, we’ll hear from Richmond Fed President Tom Barkin.

Cano Jeff,
-8.14%
Stock goes up after Walmart WMT,
+ 0.04%
She ordered 4,500 of her electric cars.

BYD 1211 stock,
-11.93%
landed in Hong Kong on speculation that Warren Buffett’s Berkshire Hathaway BRK.A main supporter,
-0.92%
It may be preparing to sell shares in the Chinese electric car maker.

Private acquisition company Bill Ackman Pershing Square Tontine Holdings PSTH,
-0.05%
It closes and will return $4 billion to shareholders.

The two-day Amazon Prime Day event kicks off Tuesday, with bargain hunters hoping for deep discounts amid rising inflation.

PepsiCo Babe,
-0.82%
It reported sales and profits that exceeded expectations. We’ll hear from Delta Air Lines DAL,
-1.45%
On Wednesday, JPMorgan Chase JPM,
-1.31%
and Morgan Stanley MS,
-1.19%
On Thursday, with Citi C,
-1.35%And the
Wells Fargo WFC,
-0.97%
and UnitedHealth at the United Nations,
-0.32%
Friday. By July 29, more than 70% of the S&P 500 components will have reported.

Read: Why Wall Street Earnings Expectations For Big Banks Have Fallen

graph

It has been some brawl among forex traders, with EURUSD,
-0.15%
inches of parity before rising against the dollar early on Tuesday. This will be the first since 2002.

markets

Dow futures YM00,
-0.79%
They are down over 200 points, with the S&P 500 ES00,
-0.71%
and Nasdaq Futures Corporation,
-2.26%
Also retreating, along with TMUBMUSD10Y bond yields,
2.917%
and CL.1 oil prices,
-4.17%And the
While the dollar is DXY,
+ 0.36%
roar forward. Bitcoin BTCUSD,
-3.97%
It fell below $20,000.

Indications

These were the most researched stock market indices on MarketWatch as of 6 a.m. ET:

random readings

Olympic champion Mo Farah said he was illegally trafficked as a child.

An American tourist faces a fee for entering the crater of Italy’s Mount Vesuvius to get his phone

Far, far away galaxies, and for the first time, NASA greetings:

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