How I Spot Big Market Corrections BEFORE They Happen

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Editor’s Note: This week, Dark Pool Trader is taking over Trade of the Day to teach you how to spot the next big move in the market.

If you want to catch up, you can find the first article here.

Stefanie Kammerman here again.

Over the past couple of days, I’ve been telling you about how I joined Investorplace… and about how I use the so-called Dark Pools — Wall Street’s “hidden” trades — to spot big market moves before they happen.

Don’t forget that if you want to use the Dark Pools to potentially make 500% gains in just a few days or weeks… time and time again, you can get more information here.

But before we get to that, today let’s take a look at a neat “trick” I do with Dark Pool data.

I called the last 14 market corrections on social media — including the recent COVID-19 market crash — before they happened.

During the crash, I even found ways to profit as the market was tanking: a trade recommendation on Ford for 539% gains… a trade recommendation on oil giant Schlumberger for 758% gains… and a trade recommendation on Disney for a whopping 2,148% gains.

Here’s how I do it…

When I peer into the Dark Pools, most of what I see is unimportant. It’s noise.

You can think of trades like rocks being thrown into a pond. The trades you and I make… they’re like pebbles. Most of the trades I see in the Dark Pools are rocks the size of your hand. I notice them, but they don’t cause big ripples.

The massive trades I look for are part of buying and selling operations that represent rocks the size of a bus. Think of glacier calving. That’s when huge masses of ice break off a glacier and dump into the ocean, causing full-on waves.

Those sorts of trades affect stock and ETF prices significantly… often for days or even weeks at a time.

I can use those sorts of trades to show my followers how to make 500% gains over and over again.

I can also use those sorts of trades to make market predictions.

You see, the big boys often place huge orders for individual stocks… but sometimes they’ll buy and sell ETFs and index funds in mass quantities.

This tips me off as to what’s going to happen in an entire sector of the economy… or even in the stock market as a whole.

That’s how I predicted the “flash crash” of late August 2015

I saw Wall Street dumping billions of dollars of a major S&P 500 Index fund in a single morning. Those “big boys” were also loading up on the VIX — an investment that provides protection against volatility — and long-term treasury bonds.

This told me big Wall Street investors were getting positioned for a drop.

But it was just the start…

Over the next few days, I saw massive selling across many of the major indexes.

All this selling of the major index funds, as well as the buying of volatility protection and all the money flowing into bonds, led me to conclude a correction was on the way.

On August 11, 2015, I tweeted…

Be careful out there, we’re headed for a correction here, put protection on, more sell prints coming in

The “flash crash” happened just two weeks later.

More than that, just prior to the big crash I found a trade on the SPY that returned 1,757% in only a few days as the market tanked.

And the 2015 flash crash is just one example of the incredible 14 market corrections I’ve called over the years.

As I write this, we’re still coming out of the worst market crash since 2008–’09. The COVID-19 pandemic is down but not out… civil unrest continues to hit American cities… and U.S.-Chinese tensions are rising.

We are living in turbulent times.

Therefore, knowing how to spot the next market correction is a valuable skill to have.

I have that skill.

Now… you may be saying to yourself that all this is interesting… but it’s just history. As the old saying goes, “Past performance is no guarantee of future success.”

So… before deciding to spend your valuable time on learning about my system, you might want to know what I’m doing right now.

You are absolutely correct to want to know that.

So I’m going to show you some of that in my next article.

Watch for it.

Stefanie Kammerman has devoted the past 26 years to studying the Dark Pool. After learning her trade at one of the biggest proprietary trading firms in the country, she left and began making a Wall Street-sized income, trading from home. Now she’s teaching others to do the same. Learn More.

The post How I Spot Big Market Corrections BEFORE They Happen appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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