The market is standing on a cliff. And most people aren’t paying attention.
We’re either …
- About to get hit with a massive updraft.
- Plummet under a crushing gravity.
After more than 40 days of shutdown silence, the U.S. government is finally about to reopen … But that’s not the catalyst I’m watching.
The real volatility bomb? Two subsequent catalysts as a result of the government’s resumed function.
These catalysts could make or break the entire market. Especially since the market dipped in early November due to the growing AI-bubble fears.
Right now, most investors are nervously bracing for impact. My students and I? We’re circling this trade opportunity on our calendars.
When the market snaps, bullish or bearish, volatility explodes in our small-cap niche. That’s when our patterns work best.
Just ask anyone who watched MMTec Inc. (MTC) rip +1,000% higher last week, starting November 5 … These stocks can explode upward.
Surf the next stock spike, instead of fearing a market drop.
Data Point 1: Potential Labor Shock
Before the government shutdown, the labor market showed signs of cooling.
That’s initially what prompted the Fed to lower interest rates, despite the inflation concern from tariffs.
And after more than 40 days of silence during the shutdown, the next jobs report could act as a shockwave that spreads through the market.
UBS economists are ringing the alarm: Unemployment claims and available layoff data are chief concerns.
October alone saw 157,000 layoffs, as reported by Challenger, Gray & Christmas, the worst since July 2020.
The cuts seem to hit automation-heavy sectors like tech and warehousing.
- Amazon slashed 14,000 corporate roles.
- UPS axed 48,000, a historic layoff.
This is about macro headlines.
If labor data is weaker than the market expected over the last month, it could trigger panic among big-cap stocks. And that volatility will trickle down to our favorite small-cap setups.
Prepare. Stay patient. And treat this coming labor-data day like an earnings release. Let the price action guide your setup.
Assuming the government opens this week, we can expect the labor data sometime next week.
Data Point 2: An Inflation Trap
Next up: CPI.
This is another powder keg.
While labor markets slide, inflation remains sticky. Or at least, that was the picture before the government shutdown.
No one knows the inflation picture over the last month. And if the government resumes operations this week, we could get updated CPI data next week.
The double whammy of weak labor data and high inflation would almost certainly cause a dip in the market.
On the flip side of that coin, strong labor data and low inflation could cause a market surge back to the highs.
And with any muted data in between, there’s no way of knowing how the market will react.
But here’s what we do know …
The big names will react first.
- If there’s bullish sentiment, especially among tech stocks, I’m looking for volatility among small-cap AI plays.
- If there’s bearish sentiment, I’m looking for massive short squeezes.
When the market is especially volatile, like it could be next week, my patterns pay out big time.
It’s not about calling the CPI or the labor data correctly. It’s about trading the reaction in the market.
More Breaking News
- Red Cat Holdings Poised for Growth as Drone Orders Surge
- Exponent Sees Promising Growth with Dividend Increase and Upbeat Q4 Earnings
- Robinhood Appointed Trustee for Trump Accounts, Stock Rises
- Novo Nordisk’s Shares Surge as FDA Targets Illegal Drug Marketing
Wait for the volatility. And look for my setups in the price action.
Proof Of Volatility: Recent Runners
You don’t have to guess if the volatility is coming. It’s already here.
Just look at what’s been running lately, even before the data hits:
- MSPR spiked 140%* on November 11.
- MOVE spiked 340%* on November 10.
- ORGO spiked 80% since November 7.
- MTC spiked 1,100%* starting November 5.
When the shutdown lifts and the data floodgates open, we’re going to see this volatility turn up to a ten.
And when it does, small caps that fit the right factors will explode:
- Low float.
- Sector sympathy.
- Breakout charts.
- Bullish news.
Use the examples that I shared above as a blueprint.
And to ensure you’re prepared for next week’s momentum: Attend the FREE 2-day crash course that starts this Friday, November 14.
Don’t stress about finding the right entries on these stocks.
Learn my entire trade process in one place and start next week ready to go:
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