Good morning, traders…
Jeff here.
There’s a moment in every trader’s career when the setups they’ve traded for years suddenly stop working.
At first, you think it’s just a rough patch, a string of bad trades. Maybe the market’s just being “weird” this week…
But then it keeps happening.
The dips you buy don’t bounce. The green opens you chase roll over. Suddenly, what used to be your sharpest edge is now your biggest “Achilles’ heel.”
And before you even realize it, the market has changed — and you’re caught flat-footed playing the wrong game.
That’s where we are right now.
Two major shifts are happening in the market right now. And if you don’t adjust to these changes, you’re going to get left behind.
So, let me show you what those changes are (and how to adapt) in today’s Tuesday Market Outlook…
Shift #1: Stop Buying the Dip, Start Selling Strength
For years, traders were conditioned to buy the dip like Pavlov’s dog was conditioned to expect food.
Markets opened weak? Easy, you bought. And 90% of the time, you were rewarded with a bounce. It became so predictable that traders barely thought about it.
But that’s not happening anymore.
We’ve had a regime change — and these shifts don’t come with an announcement. They show up quietly. They creep in.
And if you’re not paying attention, you’ll keep making the same mistake over and over until your account bleeds out.
Here’s what’s happening right now:
- Green opens are getting sold into. Strength is being met with selling pressure.
- Red opens are getting worse. Instead of bouncing, they continue to sink.
The highest-probability trade in the morning is selling rips. That’s the adjustment you need to make.
In a bull market, dip buying works because the overall trend is strong. Even if you mistime an entry, the market eventually bails you out.
But in a bearish market — or a choppy, trendless one — buying dips will chop your account up faster than a sushi knife through a piece of tiramisu.
And yet, I still see traders refusing to adjust. They keep doing what worked in 2020, 2021, or even 2023.
They think the market will eventually go back to “normal.” But what if this is the “new normal?”
The traders who make money don’t fight the tape. They recognize when the rules of engagement have changed, and they adjust.
If you want to survive in this market, you have to rewire your instincts.
Shift #2: Crypto’s Last Lever Has Been Pulled
Now, let’s talk about crypto…
I was expecting a much bigger move in Bitcoin and crypto stocks after Trump announced the strategic cryptocurrency reserve.
It was supposed to be the next big catalyst — the kind of thing that drives a sustained move higher.
But it didn’t happen.
And the way I see it, that was the last major bullet for crypto in the short term. The levers have been pulled. There’s no new fundamental driver to push prices higher right now.
And that’s a problem.
When something should go up but doesn’t, that tells you everything you need to know.
The crypto market is driven by narrative, hype, and momentum. And the biggest tailwind for BTC — big Wall Street money pouring in — just didn’t move the needle the way many traders expected.
Does that mean crypto is dead? No. Could we still see another technical breakout? Yes.
But until we see fresh buying pressure, crypto could go sideways for a while. The momentum is drying up.
What This Means for Your Trading
There are two big takeaways here:
- The “buy-the-dip” strategy isn’t working. If you keep doing it, you’re going to get crushed. Start selling strength instead.
- Crypto’s last major catalyst didn’t deliver. If you’re still chasing, you need to rethink that. There’s no urgency to be long right now.
This is what separates losing traders from winning traders:
- Losing traders keep doing what used to work, hoping the market will eventually reward them.
- Winning traders spot shifts in market behavior and adapt accordingly.
The market doesn’t care about your old playbook. It doesn’t care about your past wins. And it certainly doesn’t care about your money.
It only cares about what works today.
If you recognize these shifts and make the right adjustments, you’ll survive. You’ll crush it. You’ll be ahead of the herd while everyone else gets chopped up.
But if you don’t, you’ll be sitting there in a few months, wondering why your account value is so much lower…
The game has changed, that’s undeniable. The question is: Are you adapting?
My go-to strategy right now is Burn Notice trades. They’re quick, overnight options plays that won’t overexpose you to broader market risk.
Join my buddy Jordan Phee for a LIVE BURN NOTICE WORKSHOP … TODAY, March 4 at 10:00 a.m. EST
Click here to reserve your seat.
Happy trading,
Jeff Zananiri
*Past performance does not indicate future results
