While traders are focussed on looking at setups and next trades, elite traders are obsessed with extracting more edges from their system and market. While most traders are taught to focus on risk management, use stop loss, the real shift of a trader comes in finding the edge where potential reward is much higher than the risk you are taking. Within our team, they have been highly debating the pros and cons of these two methods and the market environment/setup in which either of these methods would benefit the most. While everyone thinks and is told the main goal of Risk management is only about reducing losses, It is about creating asymmetric R:R outcomes while staying aligned with opportunity. If you are not familiar with what we are talking about, we are referring to elite traders Jeff T

Educational Thread — RS Bearish Divergence: Why “Cheap” Isn’t an Opportunity $Global X MSCI Argentina ETF(ARGT)$ vs $iShares MSCI Brazil ETF(EWZ)$ & $iShares Latin America 40 ETF(ILF)$ One of the few groups hitting 1-month RS highs ahead of the Mar 31 pivot in $SPDR S&P 500 ETF Trust(SPY)$ and $Invesco QQQ(QQQ)$ was LatAm equities which can be expressed via directly ETF execution into $ARGT $EWZ $ILF. They’re driven by the same regional macro factors: $DXY weakness and shifting Fed rate expectations. All 3 also broke out of similar bullish descending wedge structures. While

Momentum remains strong but increasingly stretched in select names, raising near-term pullback risk. Meanwhile, TSLA’s consolidation could position it for relative strength on the next move. 1. $Lightwave Logic, Inc.(LWLG)$ $LWLG — 5th instance crossing 10x ATR% move from the 50-MA within a year. Not the ideal spot the chase the rally based on historical pullback from this extension. 2. $Aehr Test(AEHR)$ $AEHR — Gapped to ~15× ATR% from the 50-MA, likely due for a pullback similar to $Marvell Technology(MRVL)$ within the semiconductor ecosystem 3. $Tesla Motors(TSLA)$ $TSLA let it rest and consolidate above $380 is fine.

Index Futures Update $E-mini S&P 500 - main 2606(ESmain)$ -0.03% $E-mini Nasdaq 100 - main 2606(NQmain)$ -0.04% Losses have been mostly pared back, with selling pressure easing. Honestly wouldn’t mind more headline shocks from POTUS to really test the market’s resolve. This could be another classic reminder price action and relative strength matter more than headlines when it comes to momentum trading. Futures are holding up better than expected after the weekend’s failed peace talks, especially compared to the -1.5% to -2% news driven drops we saw just weeks ago. $ES is currently only -0.74% and red to green intraday after gap down. Feels like a regime where bad news brings shallow pullbacks,

Leadership is rotating across commodities, financials, and global equities, with energy, banks, and biotech showing the strongest relative strength over the past month. Top 20 Market Leading Industry Groups by 1-Month Relative Strength $United States Oil Fund LP(USO)$ — Crude Oil $iShares MSCI Brazil ETF(EWZ)$ — Brazilian Equities $SPDR S&P Regional Banking ETF(KRE)$ — Regional Banks $Spdr S&P Biotech Etf(XBI)$ — Biotech (Equal Weight) $iShares Latin America 40 ETF(ILF)$ — Latin America 40 $iShares Biotechnology ETF(IBB)$ — Biotech Me