Simultaneous Breaks – When the Whole Market Moves

Have you ever seen the entire market move in one direction and thought, “What the heck just happened?” That’s what we call a simultaneous break, and it’s one of the most powerful setups in The Strat.

When a simultaneous break occurs, it’s not just one stock reversing—it’s entire sectors, indexes, and sometimes the whole market flipping at once. This is where you go big.

What Is a Simultaneous Break?

A simultaneous break happens when multiple correlated assets (like stocks in the same sector, or the entire S&P 500) break in the same direction at the same time.

For example:

• AMD reverses.
• NVIDIA reverses.
• The semiconductor ETF ($SMH) reverses.
• The tech sector reverses.
• The NASDAQ reverses.

When everything is breaking in the same direction, you have zero doubt about where the market is going.

Why Simultaneous Breaks Matter

Here’s why this is such a big deal:

• Confirmation: When everything moves together, it’s not random. It’s institutional buying or selling across the board.
• Momentum: Simultaneous breaks usually lead to explosive moves. If every sector is selling, guess what? The market is going down hard.

How to Spot a Simultaneous Break

1. Start With the Big Picture: Look at the major indexes (SPY, QQQ, DIA, IWM). Are they all reversing in the same direction?
2. Check the Sectors: Look at sector ETFs like XLK (tech), XLF (financials), or XLE (energy). Are they confirming the move?
3. Drill Down to Individual Stocks: If the whole sector is reversing, the leading stocks in that sector (like AMD or NVIDIA for semiconductors) are probably moving too.

Example: The Recent Market Selloff

Three weeks ago, we had a simultaneous break across the entire market. SPY, QQQ, semiconductors, tech, financials, and more all reversed at the same time. That’s your signal to go big.

If you shorted SPY or QQQ during that break, you didn’t need to guess—it was clear the market was headed lower.

Your Next Steps

Next time you see a reversal, don’t just look at one stock. Check the bigger picture:

• Are the indexes reversing?
• Are the sectors confirming?
• Are the leading stocks in those sectors moving too?

When everything lines up, that’s when you hold.

In our next post, we’ll talk about risk management—how to protect your profits and ride trades for as long as possible.