See How to ‘Win No Matter What’ Amid the Chaos With Nate and Jack — LIVE at 1 p.m. ET today
Monday morning kicked off with a massive gap down in the markets, and if you’re like most traders, your first instinct might have been to panic.
But here’s the thing — big moves like this are often part of normal market rhythms. The key to navigating them is understanding the patterns and keeping a cool head.
When we see a gap like this, the first question to ask is: What caused it?
In this case, the driver was news about Deep Seek, a Chinese AI technology that developed faster and cheaper than expected. News events often create temporary volatility, but unless they introduce sustained uncertainty — like COVID shutdowns or 9/11 — the effects are usually short-lived.
Most news-driven market shocks resolve themselves within a couple of days as the market absorbs the information and redistributes prices.
Now, let’s break down the pattern.
On Monday, we opened below key moving averages — the 50-day moving average, the 20-day exponential MA, and the 8-day EMA. That’s enough to rattle nerves, especially coming off an all-time high just last Friday.
But a single-day gap down doesn’t mean we’re in freefall. What we’re really seeing is a recalibration — the market searching for its next appropriate price level.
This recalibration process often leads to a period of consolidation, or price discovery. You’ll notice that after the initial drop, the market didn’t continue crashing.
Instead, it began stabilizing as buyers stepped in. For traders, this is the moment to evaluate the context. Are we dealing with a broad-based sell-off, or is it concentrated in specific sectors?
In this case, the sell-off was largely isolated to the Technology sector (XLK) and semiconductor-related names like Nvidia (NVDA) and Advanced Micro Devices (AMD).
Meanwhile, other areas of the market — like Financials (XLF) and Health Care (XLV) — held up well and even saw gains. This tells us the broader market is still healthy, and the panic is limited to a specific corner.
When a market gap aligns with historical patterns — driven by predictable catalysts — there’s no need to overreact. Traders who can spot these rhythms can avoid costly emotional decisions.
Instead of panicking, focus on how the market behaves after the gap. Look for consolidation and signs of strength in resilient sectors.
The bottom line? Big gap downs aren’t the end of the world. They’re opportunities to step back, analyze the context, and reassess your positions. Remember, markets don’t operate in chaos — they follow patterns.
If you keep your emotions in check and stick to your strategy, days like Monday can be just another part of the rhythm.
Kane Shieh
Kane Shieh Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. The Debate Rages on, But We’re Reacting Today
Could this just be the perfect storm?
Wednesday: Fed announcement…
Thursday: GDP numbers…
Friday: PCE report…
All this is hitting right as Trump’s policies start kicking in. And the market’s split right down the middle.
Bulls charging ahead, bears warning of disaster. But here’s what’s got me excited…
While everyone else picks sides, my good friend and colleague Nate Tucci has found a way to win no matter what.
So far, he’s been able to nail an 83.3% accuracy through the deadliest market drops.
Of course, there were small wins and some that did not work out.
Nate will be joined by trading veteran Jack Carter at 1 p.m. ET today, Jan. 28, to reveal the entire strategy.
And while I cannot promise future returns or against losses…
Win no. 16 could be coming up fast… and you definitely want to be a part of it.
Join Nate and Jack at 1 PM ET!
The profits and performance shown are not typical, we make no future earnings claims, and you may lose money. From 7/3/24-1/28/25 the average return per trade winners and losers was 25.3% with an average winner of 42.5% and a 85.0% win rate over a 7 day hold time.
