Welcome to the Breakfast Club, your weekly dose of market insights and trading strategies! Join us live every Monday and Wednesday at 8:30 AM ET on Traders Reserve Live, where our experts break down the latest market movements, share actionable trade ideas, and answer your most pressing questions.
Our Weekly Income Report & The Truth About the S&P 500
Last week was a wild ride, but our members were able to navigate the volatility and come out on top. Our dedication to a data-driven approach allowed us to find opportunities others missed. In fact, our members closed a combined 15 trades for over $5,030 in net income with a 13.2% return on capital.
This wasn’t an accident. It was the result of a clear strategy applied across our core services:
Income Masters: We closed 5 trades from this service for over $2,248 in net income, resulting in a 14.4% return on capital. These were careful, longer-term positions that paid off after an average of 28 days in trade.
Income Madness Week: This special event saw our members close 6 positions for a 11.1% return on capital, adding another $1,427 to their portfolios with a quick turnaround of just 3.5 days in trade.
Millionaires Trading Club: Despite a slower, more cautious market, our members closed 4 trades with a 13.9% return on capital, bringing in over $1,355. This shows the power of discipline and a conservative approach when volatility picks up.
These results were possible because we didn’t get fooled by a few mega-cap stocks.
The Chart That’s Lying to You
Everyone’s talking about the S&P 500’s big rally on Friday. It looked like a powerful breakout, right? Well, that’s what Wall Street wants you to believe.
The “problem” with the S&P 500 is that it’s a market-capitalization-weighted index. This means its performance is heavily influenced by a handful of giant companies like Apple, Microsoft, and Nvidia. So, if these few stocks have a good day, the entire S&P 500 can look healthy, even if the majority of the market is struggling.
The market isn’t as healthy as the S&P 500 would have you believe.
The Chart That Tells the Truth
So, what should you be looking at instead?
The equal-weighted S&P 500 (RSP).
This index gives equal weight to every stock within the S&P 500, regardless of its size. When the RSP is moving up, it means there’s broad participation and real strength across the entire market. It’s a much better indicator of market health than the S&P 500.
Last week, we saw the RSP break out to a new high, while the S&P 500 was still recovering. This tells us that money is flowing into the broader market, which is a key signal for a healthier, more sustainable rally.
A Free Trade Idea for Your Watchlist: Hilton Worldwide (HLT)
Based on our analysis of seasonal trends, here is a free trade idea to consider. Hilton Worldwide (HLT) has a track record of moving higher in the 10 days leading up to the Labor Day holiday, doing so 9 out of the last 10 years.
After a recent pullback, HLT had a strong move up last Friday, bouncing right off its 20-day moving average. The stock is now approaching a previous swing high of around $280. If it can break and hold that level, it could be a signal for continued momentum. This is a solid, high-probability seasonal trade that you can add to your watch list right now.
Disclaimer: This is not financial advice. All trades carry risk. Do your own research and due diligence before entering any position.
Our Final Takeaway
Don’t get trapped by headlines and oversimplified charts. While others are getting caught in the “hope and fear” cycle, you can use the right data to make smarter decisions. The breakout in the equal-weighted RSP gives us hope that this rally has legs and may present opportunities beyond the usual mega-cap tech stocks.
By understanding the difference between these two charts, you can protect your capital and find new opportunities. That’s how we’re able to deliver consistent results for our members, even in a volatile market.
Ready to see how we apply this knowledge to our trades? Join us for our next live session.
We’ll be back Wednesday morning at 8:30 AM EST on “Breakfast Club Live” with more market insights. But don’t wait.
Don’t wait for permission to win. Join our trading community and get access to the tools, data, and strategies that are helping us win week after week. Join Traders Reserve today.
