Get Ready For A New Bull Market

Stock market action has been extremely volatile over the past three weeks. However, it's starting to look like a bottom may be in place. While I am often wrong, there are few indications that the environment is starting to improve, with increasing odds that a major low may be in place.

First, sentiment has gotten extremely bearish. We saw spikes in the Put / Call ratio, AAII Bears, and VIX to levels that often occur near major market lows.

In addition, the S&P 500 fell around 15% over a three session span in early April. These waterfall type declines typically fall into one of two categories. The first would be bottoms like the 1987 crash and the March 2020 COVID panic. The second would be the Great Depression. Now, it is very possible that we totally unwind here, but we seem to have a much better economic situation now than we did at the start of the Great Depression.

COVID 2020 Low

April 2025 Chart

Furthermore, we are starting to see some positive action in individual stocks. Bitcoin / IBIT has held up incredibly well over the past month as did MSTR. It looks like money is starting to flow into crypto and that makes sense since Bitcoin typically exhibits really strong action in the post-halving year.

I also really like the action we are seeing in names like SPOT, PLTR, and TTWO. SPOT is setting up really well just underneath its' 50-day moving average with a potential buy point if it can clear $580 and the 50-day. PLTR is holding above its' 50-day with a potential buy point around $100. Both of these stocks have held up really well as has TTWO.

If you are on the sidelines, don't let the news scare you. Remember, the market is always right. This is a time to be on the lookout for new potential leaders and to start taking small pilot buys to dip your feet back into the water. If things start to improve, then and only then can you increase exposure.

Risk right. Sit tight.

Full Disclosure: I currently own Bitcoin / IBIT & SPOT.

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