See a little....see a lot.

Stick to the Gameplan

Larry Thompson
February 22, 2025

During practice, my football coach used to repeat a mantra:

“See a little, see a lot, see a lot, see nothing.”

He point was to focus on the details during practice and master them.

In a game, it gets loud and chaotic.

When you try to do too much, your focus shifts.

This idea hits home for the market this week.

A pretty ugly failed breakout on the S&P 500 and we can start to “see a lot”.

We lose focus on the price action and the context in which it’s occurring.

News outlets start sharing bearish data to fit the price action, leading many to panic.

So let’s focus on “seeing a little”.

As we’ve discussed for several weeks, the S&P 500 is in a long-term uptrend and an intermediate-term “Slap Chop Zone.”

Despite how we “feel”. None of that changed this week.

Until we see consistent closes above $610 or below $580, I’d just expect more of the same: noisy price action.

Is there caution signs?

Sure!

But just as an upside breakout needs follow-through, this downside price action does too.

The long-term trend is up, and we have clear risk management levels to guide us.

Like a game plan in football, our strategy is set.

Everything else is just noise.

The market’s MVPs have been struggling, which is why this chopfest persists.

These seven stocks make up over 30% of the S&P 500.

The bench players have done okay, but the starters need to step up to help us win (breakout).

Nvidia, the poster child of this bull market, is set to report earnings this Wednesday.

How the Magnificent 7 perform will dictate the market’s next move.

Nvidia continues to beat expectations.

I expect another higher low in the S&P 500.

If Nvidia falters, the chop may persist or even test our risk management levels.

Fade out the noise this weekend.

Go for a walk, turn off the TV, and focus on the game plan you set.

Check out my weekly show with my friends at Stocktwits!

First ten minutes I highlight how I see current market price action and the last 10 I breakdown some of my favorite setups.