Why the Next Market Move Could Be Sizable — And How to Be Ready for It

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It was another poor session on Wednesday, with breadth slumping to around 39% positive. Although stocks did not close at the lows, there was no strong intraday accumulation, which has been the saving grace of recent market action. The losses in the indexes were mild but that was mostly due to strength in chip-related names, Tesla (TSLA) , and a couple of the Magnificent Seven (MAGS) stocks.

The action is not panicky or terrible — and that may not be entirely a good thing. A market that cannot discount a constant stream of headlines about oil and Iran is a market that is grinding rather than resolving. The main thing holding the indexes up right now is a series of vague comments from President Trump that the war is ahead of schedule and will be concluded soon. Vague reassurances have a shorter and shorter shelf life each time they are issued.

What Goldman Sees

There was an interesting note from John Flood of Goldman Sachs on Wednesday. Hedge fund positioning has become heavily skewed toward shorts in ETFs and index futures, which means that positive Iran headlines could trigger index gains of 2% to 3% quickly as those macro shorts unwind. Corporate buybacks are providing a floor of support in the meantime.

Market volatility remains elevated across multiple fronts, war uncertainty, AI reassessment, and credit concerns, with thin liquidity amplifying every move. The primary risk in Goldman's view is that no clear resolution emerges and investors remain under sustained stress.

That is a solid view of the current situation. The market is coiled and the direction of the unwind depends entirely on which headline hits first.

Game Plan

The Goldman analysis points directly to the right course of action. Stay vigilant and be ready to move quickly when good news finally arrives. The setup for a sharp rally is there. The trigger is not yet.

Loading up now carries real risk because the good news may not come for a while, and stocks could move lower before they move higher. That is why the approach remains the same. Stay patient, make small, selective buys, and have a clear shopping list ready so you can act quickly when conditions change.

When the turn does come, the old large-cap leaders will typically be bought first because that is the easiest and most accessible move for large funds. But the secondary, smaller names will often produce better percentage moves once a real rally takes hold. Having those names identified and sized in advance is the preparation that turns a market turn into an opportunity rather than a scramble.

This frustrating market action will not continue forever. Stay patient and be ready.

Have a good evening. I'll see you Thursday.

At the time of publication, Rev Shark had no positions in any securities mentioned.