How to Take Advantage of a Hot Market
We got the ripper. Now it's time to seize the moment.
We got the ripper.
The Nasdaq has rallied nearly 15% in just ten trading days, this is a historic move.
The question is no longer “will we bounce?” The question is “what happens now?”
Two weeks ago I uploaded an article titled “Liberation Day: 2026” found here. In this article I outlined and discussed why I believed the comparisons to last April were too strong to ignore, and so far this April has played out exactly the same as last April.
After seven months of consolidation in the indices, we could be entering a “hot market.”
Hot market (noun):
A market environment where momentum is strong and a large number of stocks across multiple sectors and themes are trending higher at the same time. In a hot market setups consistently work, breakouts follow through, pullbacks are shallow, volatility is low, themes are firing, etc.
Example in context:
“This is a hot market, there are too many good charts to even focus!”
Some people might say “haven’t we been in a hot market over the past few weeks?” The answer is yes, but not exactly. It’s been a brief two week stretch. When I think of a hot market, I think of a recent periods like we saw from May-October 2025, January-July 2023, October 2023-July 2024, 2020-2021,
We’ve had a positive environment for a few weeks, but when you zoom out and look at truly “hot” markets, these trends persist for many months, not just a few days or a few weeks.
What we’ve seen over the past few weeks is what I’d consider an appetizer, the entree is still in the kitchen.
In case you missed it, I’ve published three very important and timely articles.
The methodology and ideology in these three articles is what led me to buy stocks over the last few weeks, before the big moves in the indices. I strongly suggest reading these if you have a chance.
I think these are three of my best and most important articles I’ve written since starting this Substack.
It’s not important to buy stocks at the very bottom, but it is important to notice character changes and shifts in the market + individual names. These three articles outline how you can do that effectively.
A hot market can be overwhelming because there’s so much merchandise, so many groups, etc. acting well. It can be difficult to focus. If you know how to act during a hot market, it can be much easier to succeed.
Environments like this don’t last forever but when they show up, they can define your entire year if you handle them correctly.
In the remainder of this article I’m going to outline what I’m watching for next in the overall market, how to navigate a hot market, how you can identify one, which types of names and groups you want to hone in on, what types of pullbacks to buy, when to sell, how to hold stocks for longer and ensure you see big picture moves/gains, and more.
This is an important and timely article as we enter a potentially hot market leading into some of the most anticipated IPOs ever in SpaceX, OpenAI, Anthropic, Anduril, and more.