How to Fade the Crowd and Profit After 2 Straight Down Days

Markets never move in a straight line

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Monday’s Opening Playbook is going to be star-studded and action-packed — hosts Nate Tucci and Graham Lindman will be joined by Roger Scott, Kane Shieh and Lance Ippolito to cover their biggest summer blockbuster market predictions and No. 1 stock pick    How to Fade the Crowd and Profit After 2 Straight Down Days If you’ve been trading long enough, you know that markets never move in a straight line. Even in a strong bullish trend, you’ll get periods of selling and profit-taking.  And when the market gives you two or more consecutive down days — especially after a recent run higher — you can use that to your advantage. This is where a bullish fade trade comes in. It’s one of my favorite short-term strategies because it lets you take a contrarian position when the crowd is leaning the wrong way. Why the Reversion Edge Works Markets have a natural tendency to revert to the mean. If you strip away all the daily noise and just look at the long-term trend, you’ll see a steady upward bias — but not without frequent pullbacks along the way. After a couple of strong down days, especially in a stock that’s been in an overall bullish trend, you often get a sharp snapback. That’s because sellers start to exhaust themselves and buyers step back in to scoop up shares at a perceived discount. I like to target this edge overnight — buying late in the session after two or three down days and selling the next morning on a gap up. In fact, historical data shows that most market gains occur overnight, not during the regular session. From 1993 to today, buying the close and selling the next open has been one of the most consistent edges you can capture.  During the day, gains tend to be far more muted or even negative. How I Find the Best Setups First, I use a scanner to identify strong stocks that have fallen two or more days in a row. The goal is to catch high-quality names that are temporarily oversold — not broken stocks in clear downtrends. For example, I showed recent trades in Google parent Alphabet (GOOG; GOOGL) and American Express (AXP) where this exact pattern played out.  You buy late on the second or third day down and position for an overnight gap. GE (GE) is another example. After two days down, it snapped higher the next morning — a textbook fade trade. It’s important to avoid news-driven names or stocks that are breaking down structurally. I want clean patterns in strong stocks that are pulling back in an orderly fashion.  When you get that setup, the odds of a mean-reverting bounce go way up. Bottom line — when the market gives you two straight down days, don’t just follow the crowd lower. Look for those high-quality stocks poised for a bounce and take the other side of the trade. I’ll walk you through even more scanner tips and pattern recognition in future sessions. So stay tuned for that, and be sure to tune in at 10 a.m. ET on Monday for the biggest edition of “Opening Playbook” yet… Nate and I will be joined by Roger Scott, Kane Shieh and Lance Ippolito for an action-packed session covering our biggest summer blockbuster market predictions and projections, and our No. 1 stock picks! Join the fun here! _______________________________________________ Will Fed Chair Powell Strengthen or Squash the Market's Recovery on Wednesday?  At the 2025 Summer Forecast on Monday, Roger will share his predictions on the Fed Meeting and how to position for any outcome.     Register for The 2025 Summer Forecast Graham Lindman Graham Lindman Trading _______________________________________________ Want to get a link to TradingPub content, trade ideas, real-time market analysis and educational tidbits? We have you covered! Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3…  1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account: To download to your iPhone, click here. To download to your Android device, click here. After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.”  2. Download Telegram on your desktop: Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer. To download onto your PC, click here. To download onto your MacOS, click here. 3. Then add our channels by clicking these links!    • Lance Ippolito: https://t.me/+-gVwEIwGJhplMTgx   • Graham Lindman: https://t.me/+abM5RWRJKrpkNWI5    • Roger Scott: https://t.me/+_vmfwkeP8fA5YWQ5    • Jeffry Turnmire: https://t.me/+6TdDE7-F6GlhMmJh See you there!  _______________________________________________

Monday’s Opening Playbook is going to be star-studded and action-packed — hosts Nate Tucci and Graham Lindman will be joined by Roger Scott, Kane Shieh and Lance Ippolito to cover their biggest summer blockbuster market predictions and No. 1 stock pick    How to Fade the Crowd and Profit After 2 Straight Down Days If you’ve been trading long enough, you know that markets never move in a straight line. Even in a strong bullish trend, you’ll get periods of selling and profit-taking.   And when the market gives you two or more consecutive down days — especially after a recent run higher — you can use that to your advantage.   This is where a bullish fade trade comes in. It’s one of my favorite short-term strategies because it lets you take a contrarian position when the crowd is leaning the wrong way.   Why the Reversion Edge Works   Markets have a natural tendency to revert to the mean. If you strip away all the daily noise and just look at the long-term trend, you’ll see a steady upward bias — but not without frequent pullbacks along the way.   After a couple of strong down days, especially in a stock that’s been in an overall bullish trend, you often get a sharp snapback. That’s because sellers start to exhaust themselves and buyers step back in to scoop up shares at a perceived discount. I like to target this edge overnight — buying late in the session after two or three down days and selling the next morning on a gap up.   In fact, historical data shows that most market gains occur overnight, not during the regular session. From 1993 to today, buying the close and selling the next open has been one of the most consistent edges you can capture.    During the day, gains tend to be far more muted or even negative.   How I Find the Best Setups   First, I use a scanner to identify strong stocks that have fallen two or more days in a row. The goal is to catch high-quality names that are temporarily oversold — not broken stocks in clear downtrends.   For example, I showed recent trades in Google parent Alphabet (GOOG; GOOGL) and American Express (AXP) where this exact pattern played out.    You buy late on the second or third day down and position for an overnight gap.   GE (GE) is another example. After two days down, it snapped higher the next morning — a textbook fade trade.   It’s important to avoid news-driven names or stocks that are breaking down structurally. I want clean patterns in strong stocks that are pulling back in an orderly fashion.    When you get that setup, the odds of a mean-reverting bounce go way up.   Bottom line — when the market gives you two straight down days, don’t just follow the crowd lower. Look for those high-quality stocks poised for a bounce and take the other side of the trade.   I’ll walk you through even more scanner tips and pattern recognition in future sessions. So stay tuned for that, and be sure to tune in at 10 a.m. ET on Monday for the biggest edition of “Opening Playbook” yet…   Nate and I will be joined by Roger Scott, Kane Shieh and Lance Ippolito for an action-packed session covering our biggest summer blockbuster market predictions and projections, and our No. 1 stock picks!   Join the fun here! _______________________________________________ Will Fed Chair Powell Strengthen or Squash the Market's Recovery on Wednesday?   At the 2025 Summer Forecast on Monday, Roger will share his predictions on the Fed Meeting and how to position for any outcome.     Register for The 2025 Summer Forecast Graham Lindman Graham Lindman Trading _______________________________________________ Want to get a link to TradingPub content, trade ideas, real-time market analysis and educational tidbits? We have you covered!   Telegram is an entirely free messaging app and getting access is as easy as 1… 2… 3…    1. Download Telegram on your mobile device (Before you can add Telegram to your desktop computer, you must download the application on your phone and create your account:   To download to your iPhone, click here. To download to your Android device, click here.   After the download is complete, please create an account. NOTE: You can manage your privacy settings by clicking “Settings,” and then “Privacy & Security.”    2. Download Telegram on your desktop:   Once you’ve downloaded Telegram onto your mobile device and created your personal account, you can download it onto your desktop computer.   To download onto your PC, click here. To download onto your MacOS, click here.   3. Then add our channels by clicking these links!    Lance Ippolito: https://t.me/+-gVwEIwGJhplMTgx   Graham Lindman: https://t.me/+abM5RWRJKrpkNWI5    Roger Scott: https://t.me/+_vmfwkeP8fA5YWQ5    Jeffry Turnmire: https://t.me/+6TdDE7-F6GlhMmJh See you there!  _______________________________________________

ABOUT US At The TradingPub, we are dedicated to democratizing financial literacy, ensuring that everyone has access to the knowledge and tools necessary to navigate financial markets effectively. We believe that financial education and the opportunity to build wealth should be accessible to all, regardless of prior experience or background. Our platform offers a variety of resources designed to simplify the process of understanding and participating in the markets. Through our online forum, we share actionable insights and techniques aimed at helping individuals enhance their understanding and confidence in investing. We also host interactive webinars and training sessions, emphasizing a collaborative and educational approach. Whether you are new to trading or have prior experience, our mission is to cultivate a supportive community of traders who come together to discuss and analyze the latest developments in the financial world. OUR EXPERTS Our team comprises seasoned professionals with extensive experience in various facets of trading and investment:   • Roger Scott: With over 25 years in the industry, Roger has traded a wide range of financial instruments, from commodities to stock options and ETFs. He has collaborated with Ivy League economists and notable figures in trading, sharing his expertise through various media outlets.   • Lance Ippolito: Specializing in institutional order flow and event-driven trading, Lance has spent the past seven years focusing on trader education and mentorship. He has developed custom trading strategies and indicators for multiple platforms.   • Kane Shieh: A former VP and Portfolio Manager at a leading investment management firm, Kane has managed substantial assets and played key roles during significant financial events. He now shares his insights with traders worldwide. INVESTING RESOURCES We provide a comprehensive suite of educational materials to support your investing journey:   • Stocks: Understanding the fundamentals of stocks is crucial. A stock represents a fraction of ownership in a corporation, and investing in stocks can help build your savings or retirement, protect your money from inflation, and maximize income. It's important to remember that there are risks when investing in the stock market.   • Options Trading: Options are contracts that give investors the right to buy or sell at a specific price before an expiration date. While they offer opportunities, it's essential to understand the associated risks and rewards.   • Educational Content: Our platform offers a variety of resources designed to simplify the process of understanding and participating in the markets. DISCLAIMER The materials and resources provided by The TradingPub LLC are intended solely for informational purposes. Neither The TradingPub nor any of its team members offer advice related to investments, legal matters, or taxation. The tools and analysis we present are designed to enhance understanding but should not be interpreted as professional advice. Any use of this information for purposes beyond its intended scope is at the sole discretion and risk of the user. IMPORTANT NOTE Engaging in trading or investment activities involves potential risks, including the possibility of financial loss. The TradingPub does not assume responsibility for any outcomes resulting from decisions based on the information shared in our materials. By utilizing the concepts and insights presented, you accept full responsibility for any trading or investment actions you undertake. We strongly recommend consulting with a licensed financial advisor, accountant, or legal professional before making decisions related to trading or investment strategies. Understanding the risks involved, especially in specialized areas such as options transactions, is essential. For comprehensive details, please review our full Terms and Conditions at: https://thetradingpub.com/terms-of-service/. Unsubscribe This message was sent to you by The TradingPub: 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, FL 32081, United States

ABOUT US   At The TradingPub, we are dedicated to democratizing financial literacy, ensuring that everyone has access to the knowledge and tools necessary to navigate financial markets effectively. We believe that financial education and the opportunity to build wealth should be accessible to all, regardless of prior experience or background. Our platform offers a variety of resources designed to simplify the process of understanding and participating in the markets.   Through our online forum, we share actionable insights and techniques aimed at helping individuals enhance their understanding and confidence in investing. We also host interactive webinars and training sessions, emphasizing a collaborative and educational approach. Whether you are new to trading or have prior experience, our mission is to cultivate a supportive community of traders who come together to discuss and analyze the latest developments in the financial world.   OUR EXPERTS   Our team comprises seasoned professionals with extensive experience in various facets of trading and investment:   Roger Scott: With over 25 years in the industry, Roger has traded a wide range of financial instruments, from commodities to stock options and ETFs. He has collaborated with Ivy League economists and notable figures in trading, sharing his expertise through various media outlets.   Lance Ippolito: Specializing in institutional order flow and event-driven trading, Lance has spent the past seven years focusing on trader education and mentorship. He has developed custom trading strategies and indicators for multiple platforms.   Kane Shieh: A former VP and Portfolio Manager at a leading investment management firm, Kane has managed substantial assets and played key roles during significant financial events. He now shares his insights with traders worldwide. INVESTING RESOURCES   We provide a comprehensive suite of educational materials to support your investing journey:   Stocks: Understanding the fundamentals of stocks is crucial. A stock represents a fraction of ownership in a corporation, and investing in stocks can help build your savings or retirement, protect your money from inflation, and maximize income. It's important to remember that there are risks when investing in the stock market.   Options Trading: Options are contracts that give investors the right to buy or sell at a specific price before an expiration date. While they offer opportunities, it's essential to understand the associated risks and rewards.   Educational Content: Our platform offers a variety of resources designed to simplify the process of understanding and participating in the markets. DISCLAIMER   The materials and resources provided by The TradingPub LLC are intended solely for informational purposes. Neither The TradingPub nor any of its team members offer advice related to investments, legal matters, or taxation. The tools and analysis we present are designed to enhance understanding but should not be interpreted as professional advice. Any use of this information for purposes beyond its intended scope is at the sole discretion and risk of the user.   IMPORTANT NOTE   Engaging in trading or investment activities involves potential risks, including the possibility of financial loss. The TradingPub does not assume responsibility for any outcomes resulting from decisions based on the information shared in our materials. By utilizing the concepts and insights presented, you accept full responsibility for any trading or investment actions you undertake.   We strongly recommend consulting with a licensed financial advisor, accountant, or legal professional before making decisions related to trading or investment strategies. Understanding the risks involved, especially in specialized areas such as options transactions, is essential.   For comprehensive details, please review our full Terms and Conditions at: https://thetradingpub.com/terms-of-service/.   Unsubscribe   This message was sent to you by The TradingPub: 101 Marketside Ave, Suite 404 PMB 318, Ponte Vedra, FL 32081, United States