May has not been kind to the markets.
As you can see from the S&P chart, we're down from 2,950 back to just over 2,800 and it's about a 5% drop (2,802 is exact) and that means, according to the Fabulous 5% Rule™, that we can expect AT LEAST a 30-point bounce to 2,830 but the exact number is 2,832, which is EXACTLY where we are at about 8:30 this morning.
The reason the 5% Rule is so amazing at predicting these levels weeks in advance is that it's not TA, we're merely exploiting the mathematical convergences inherent in bot-trading programs – which dominate trading these days – ESPECIALLY in low-volume markets, like we're having now. In fact, here's the S&P chart we drew on 5/15 – still stuck in the range we expected:
Remember, the 5% Rule can only tell you the range the indexes are likely to track in and we are Philstockworld can only tell you how to profit frtom trading those moves – the rest is up to you.
Speaking of things that were up to you – congratulations to all who stuck it our with us on our Gasoline (/RBN19) trade as we got a nice pop Friday that followed-through into this morning and now we're up over $2,500 on two contracts and we're very happy to lock that in with a tight stop at $1.94 since both Silver (/SI) at $14.30 and Natural Gas (/NGv19) at $2.60 are both back to our buy points as the Dollar pops back to 97.70 so we're happy to switch horses at this spot.
Fututres have been all over the place as Trump said yesterday that the US is "not ready" to make a Trade Deal with China. China's Industrial Profits fell in April but that was before the new round of tariffs so it's hard to say if Trump is "winning" or just kicking China while it's down – something the Middle Kingdom will not soon forget. In reality (something the President is not very familiar with), the drop in profits was mainly due to the comparison to high profits a…