Heading into 2025, we have one piece of advice – zoom out.
The other week, we laid out your “Behind the Scenes” look at our preparations and roadmap for success in the coming year.
Now that the New Year is just a few short days away, it’s time to start working through that multi-step process as we prepare for 2025.
And it all starts with zooming out on the chart, Step 1: Assessing the Lay of the Land.
That’s why we are going to dive into one key area of the market, and then zoom out to give you the big picture to hit the ground running in 2025.
Breaking Through the Noise
It almost feels like we are just limping across the finish line as we approach the end of 2024.
There’s a lot of concern around the economy, the Federal Reserve just caused volatility to spike the most since 2018 and major sectors and indexes are breaking key short-term uptrends.
But, for Step 1, our goal is to asses the lay of the land, not the knee-jerk reactions.
And to do that, all it takes is zooming out on the chart to detect the clear trends taking shape.
Take a look at this chart of the SPY (the SPDR S&P 500 ETF):
This chart goes back about a year, to capture the end of 2023 and rise during 2024. The trend is clear – stocks have been heading higher over the last twelve months.
I’m sure you’ve heard the saying; a bull market climbs a wall of worry. It rang true throughout 2024, as we battled inflation, higher interest rates and a Presidential Election.
But, at the end of the day, the market was resilient and we ended with one of the stronger years on record for the S&P 500.
So, despite the “wall of worry” stocks have been holding higher in clear trends that we can use to trade and track as we get into 2025.
Starting 2025 with a Clearer Market Perspective
Your key takeaway is simple yet, powerful: zoom out.
By stepping back and assessing the broader trends in the market, we can cut through the noise of short-term volatility and focus on the bigger picture taking shape.
Despite the challenges and uncertainties of 2024, and we expect more in 2025, the resilience of the market was undeniable. Clear, upward trends emerged, offering a roadmap for navigating the months ahead.
At MarketTraders.com, we’re committed to helping you decode these trends and equip you with actionable strategies for the New Year. Whether you’re just getting started or fine-tuning your approach, our insights and tools are designed to give you an edge.
Stay tuned as we break down the critical steps to kickstart 2025 with clarity and confidence.
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