الاثنين، 10 مارس 2025

Why It’s Time to Wake Up and Take Action

March 10, 2025 | Read Online

Don Kaufman here.

Let's talk about what's really happening out there in the market today. The Dow's down 600 points, the S&P 500 is getting pummeled to its lowest levels since September, and the Nasdaq is leading the charge downhill with a near 4% drop. Tesla? Down 13%.

The so-called "Magnificent Seven"? They're not looking so magnificent anymore. Nvidia, Alphabet, Meta—they're all taking a beating.

So here's the deal: This isn't just a bad day. This is what I've been warning you about—volatility on steroids and fear gripping the markets.

We've got recession fears, tariffs from the Trump administration stirring up inflation concerns, and a Federal Reserve that's essentially trapped.

Sound like fun? Didn't think so.

Let's break this down and talk about what you need to do right now.

What's Really Going On? Capitulation Isn't Here Yet

First things first: This market isn't done falling. Sure, we're down big today, but this isn't the full-blown panic we need to see before we hit bottom.

You know what I'm talking about—capitulation. That moment when the selling gets so intense, everyone's running for the exits, and no one cares what they're selling. It's chaos. It's ugly. And it's necessary.

Here's the problem: Right now, we're still seeing pockets of strength. Defensive sectors like energy, utilities, and healthcare are holding up.

That's not what capitulation looks like. Until everything gets hit—yes, everything—this market hasn't puked its proverbial guts out yet. So buckle up. We're not there yet.

Stop Sitting on Your Hands – Protect Your Portfolio

Let me be crystal clear: If you're sitting there thinking, "Eh, this is just a pullback. It'll bounce back like it always does," you're playing a dangerous game.

This isn't 2021 anymore. The Fed isn't your friend, and the safety net of easy money is gone. You need to take action.

Here's what you can do:

Hedge Your Portfolio: Buy some puts or put spreads on the S&P 500. If you're not sure how, we'll walk you through it at TheoTrade. This is about protecting your downside, not trying to outsmart the market.
Reduce Exposure: Move some of your portfolio to cash or short-term bonds. I'm not saying sell everything, but taking some chips off the table? Yeah, that's a smart move.
Stop Chasing Dividends: I see some of you running to "safe" names like Verizon or AT&T for their big yields. Trust me, when the market really starts to panic, those will get hit too. Don't kid yourself.

The Biggest Mistake You Can Make Right Now

You know what I've seen too many times? Investors who sit there and do nothing. They watch their portfolios bleed out, holding onto the belief that "it'll come back." Sure, maybe it will—eventually. But how much are you willing to lose before that happens?

Look at the Nasdaq today. Down nearly 4%. Tesla's getting crushed, Nvidia's down, and even Apple is finally starting to roll over.

If you think these names are untouchable, you're wrong. Tech stocks led the charge higher, and now they're leading the way lower. This is how bear markets work, folks.

Volatility Is Here to Stay – Embrace It

Let's talk about volatility. The VIX is creeping up toward 30, and the SPX expected move for the week is $152. That's a massive range, people. This is the kind of market where you can't rely on technicals or "buy the dip" strategies. You've gotta respect the waves. These are big boy waves now, and if you're not careful, they'll take you out.

Still think this is just a correction? Let me remind you: we're only down about 8% from the highs. We haven't even hit the 10% threshold for a correction yet.

A bear market? That's 20% down. You do the math. There's room for this thing to get a whole lot uglier.

What's the Plan?

Here's the bottom line: You need a plan, and you need it now. Hoping for a bounce isn't a plan. Ignoring the market isn't a plan. And thinking the Fed or the administration will swoop in to save the day? Definitely not a plan.

Here's what I'd do:

Short-Term Hedging: Use options to hedge your exposure. A simple put spread on the SPY can go a long way in protecting your portfolio.
Look for Opportunities: When the market does bounce—and it will—it's going to be violent. Be ready to capitalize on oversold stocks like Tesla or Nvidia. But don't jump in yet. Wait for the dust to settle.
Stay Nimble: This isn't the time to marry your trades. Be ready to pivot. The market is shifting fast, and you need to move with it.

Don't Be a Victim

I've seen this movie before. It's called The 2000 Dot-Com Bubble, The 2008 Financial Crisis, and The 2020 Pandemic Crash. Each time, there were people who sat on their hands and watched their portfolios get obliterated. Don't be that person. You have options—literally and figuratively.

This market is giving you a chance to protect yourself. Take it. And if you're not sure what to do, that's what TheoTrade is here for. We've been through this before, and we'll guide you through it again.

Remember: It's not about predicting the market. It's about surviving it.

Hands and feet inside the vehicle.

It's going to be a wild ride.

To your success,

Don Kaufman

Volatility Is Surging—Learn How to Trade It Like a Pro

Turn Market Chaos Into Your Biggest Opportunity Yet

Last week, the S&P 500 posted its worst week since September, dropping 3.1%, while the Nasdaq Composite tumbled 3.5%.

And today, markets are already taking another dive, with the Dow plunging over 600 points and the Nasdaq nearing a 4% loss.

But while most traders panic, smart traders know that volatility isn't chaos—it's opportunity.

Just last week, Don Kaufman locked in a 55% gain in XLU by recognizing and acting on exactly what the market was signaling.

Here's the truth: Volatility creates movement, and movement creates opportunity. The question is—are you ready to act?

If you missed Don's LIVE event, don't worry—the replay is now available. In this must-watch session, Don reveals:

Why volatility is your best friend in a turbulent market
The 3 critical signals that pinpoint the next big market move
How to trade these setups using defined-risk strategies that protect your capital while maximizing profits

Opportunities like these are already unfolding—the market waits for no one.

👉 Watch the Replay Now

Don't let volatility leave you behind. Turn today's market chaos into tomorrow's profits.