{"id":26852,"date":"2026-04-14T07:30:00","date_gmt":"2026-04-14T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=26852"},"modified":"2026-04-13T13:51:01","modified_gmt":"2026-04-13T17:51:01","slug":"a-five-point-checklist-for-this-market","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/a-five-point-checklist-for-this-market\/","title":{"rendered":"A Five-Point Checklist for This Market"},"content":{"rendered":"
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Managing Editor’s Note: <\/strong>Tradesmith CEO Keith Kaplan is here to tell us about why, even though we’re in a volatile market, you don’t have to choose between protecting yourself and staying in the game. Because TradeSmith’s software lets you play defense and offense at the same time.<\/p>\n

With our indicators and portfolio management tools, you can still profit on the upside if this bull market continues. And you’re protected if this year’s volatility turns into something worse.<\/p>\n

Today, he’ll run through a five-point checklist you can follow to do just that.<\/p>\n<\/div>\n

A Five-Point Checklist for This Market<\/h2>\n

By Keith Kaplan, CEO, TradeSmith <\/strong><\/p>\n\n

When I warned you last December that 2026 would be a \u201ctipping point\u201d
year for the AI boom, I wasn’t thinking about a war in the Middle East.<\/p>\n\n\n\n

I had no idea it was even in the cards.<\/p>\n\n\n\n

In fact, I wasn\u2019t thinking about the future at all. I was looking at the past<\/em>.<\/p>\n\n\n\n

The AI boom isn\u2019t the first time stocks have soared on the promise of a transformative new general purpose technology.<\/p>\n\n\n\n

The market boomed in the 1920s on the belief that electrification, automobiles, and mass production would create a New Era of prosperity.<\/p>\n\n\n\n

In the 1960s, another New Era dawned with the rise of computing, electronics, and aerospace.<\/p>\n\n\n\n

Then in the late 1990s came the fastest boom of the century, built on a new communication technology called the internet.<\/p>\n\n\n\n

As I wrote<\/strong><\/a>:<\/p>\n\n\n\n

Different decades. Different technologies. Different New Eras. But each ended the same way: with a \u201ctipping point\u201d nobody saw coming until it was too late. <\/p>\n\n\n\n

After a roaring bull market over the past three years, the tech-filled Nasdaq 100 is down 4% in 2026. And the Roundhill Magnificent Seven ETF (MAGS)<\/strong> \u2013 which tracks the seven mega-cap tech stocks that led the bull run \u2013 is down 7%.<\/p>\n\n\n\n

That\u2019s obviously not a crash. It\u2019s hardly even a reason to panic. We\u2019re nowhere near the kind of market where we\u2019d recommend selling everything and moving to cash.<\/p>\n\n\n\n

But it is a change in market character. And in my experience, those are worth paying attention to.<\/p>\n\n\n\n

The good news is you don\u2019t have to choose between protecting yourself and staying in the game. Because TradeSmith\u2019s software lets you play defense and offense at the same time.<\/p>\n\n\n\n

With our indicators and portfolio management tools, you can still profit on the upside if this bull market continues. And you\u2019re protected if this year\u2019s volatility turns into something worse.<\/p>\n\n\n\n

Today, I\u2019ll run through a five-point checklist you can follow to do just that.<\/p>\n\n\n\n

Move No.1: Check Your Stops<\/h2>\n\n\n\n

Right now, the most important question to ask about every position you hold is: Do I have the right stop in place?<\/p>\n\n\n\n

If you\u2019re a TradeSmith subscriber, that means using our Long-Term Health stops for your long-term holdings. It\u2019s calibrated to each stock\u2019s normal range of movement, so you don’t get shaken out by routine dips in an otherwise healthy position.<\/p>\n\n\n\n

For shorter-term positions \u2013 anything you\u2019re holding for months, not years \u2013 you want a tighter leash. That\u2019s where our Short-Term Health stops come in. They trigger earlier, and they\u2019re calibrated for faster-moving conditions.<\/p>\n\n\n\n

The distinction matters. Use a long-term stop on a short-term trade, and a small loss can become a large one before the signal fires. Use a short-term stop on a long-term holding, and normal volatility shakes you out of a great position prematurely.<\/p>\n\n\n\n

Stop losses matter because when markets get choppy, emotions take over. Fear makes you sell too early. Hope makes you hold too long.<\/p>\n\n\n\n

This simple risk management tool removes that decision entirely. You set it in advance, when you\u2019re thinking clearly. If the market moves against you, and your stops are triggered, you get out without having to think about it.<\/p>\n\n\n\n

And TradeSmith makes stops even better by tuning them to each of your positions.<\/p>\n\n\n\n

Here\u2019s a snapshot of the five most recent Long-Term Health sell signals across the S&P 500, Nasdaq 100, and Dow. If you own any of these stocks, it\u2019s time to seriously consider selling them:<\/p>\n\n\n\n

\"\"\/<\/figure>\n\n\n\n

These are just five of 203 stocks showing the same sell signal across our system right now. So if you\u2019re a TradeStops subscriber, log in<\/strong><\/a> and make sure nothing you own has the same flag.<\/p>\n\n\n\n

Move No. 2: Rebalance Your Portfolio<\/h2>\n\n\n\n

A bull market is great for your account balance. It\u2019s not so great for your position sizes.<\/p>\n\n\n\n

When stocks run hard, your winners become a bigger slice of your portfolio. A stock that started as a 3% position and doubled is now 6%. One that tripled is nearly 10%.<\/p>\n\n\n\n

It feels great on the way up\u2026 but it\u2019s painful on the way down.<\/p>\n\n\n\n

A great habit to get into is regular rebalancing \u2013 selling a slice of your biggest winners and spreading the proceeds across the rest of your portfolio.<\/p>\n\n\n\n

It sounds counterintuitive. You\u2019re trimming the stocks that are working. But it\u2019s how disciplined investors keep risk evenly distributed, so that no single position can do serious damage to their overall wealth.<\/p>\n\n\n\n

Move No. 3: Follow What\u2019s Working<\/h2>\n\n\n\n

A tipping point doesn\u2019t mean everything goes down. It means investors get more selective.<\/p>\n\n\n\n

The rising tide stops lifting all boats\u2026 and the stocks with real, structural demand start to separate from the ones that were just riding the wave.<\/p>\n\n\n\n

Right now, our data is pointing to three clear areas of strength \u2013 all tied to the AI boom, but one level deeper than the obvious plays.<\/p>\n\n\n\n