Mega-Trend #3 for 2013 (Only Money Can Fix This Problem)

Jul 9, 2020

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01:13 PM PST

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Good day for earnings? Stocks go up. Bad day for the economy? Stocks go down. Central banks promise stimulus? Stocks go up. Earnings fizzle for a couple of days? Stocks go down. What a freakin' joke. All of those reasons are rational and reasonable, but if the cheese gets moved every day, stocks aren't going to make much net progress. And they haven't. Oh, the S&P 500 bounced today, but it's basically right back where it was three weeks ago. There's a HUGE hurdle clearly getting in the way now, which we'll dissect in a second. First I want to explore a megatrend that may require some action on your part.


Megatrend #3

One Small Step for the VIX, One Giant Leap for the Bears?

Jul 9, 2020

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01:13 PM PST

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Howdy folks. Did you survive Wednesday's meltdown? I hope so, though if Wednesday rattled you, I've got a little bad news - we don't think today was just a one-day stumble. I've still got that nagging feeling stocks are finally going to start paying the proverbial piper from the big year-to-date gains.


We'll slice and dice today's move for you below. First we need to tell you the rest of the story about this whole 'Sell in May' thing.

Time to Exit This Trade. Plus, Where's the Phantom Inventory?

Jul 9, 2020

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01:13 PM PST

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Is everybody's Tuesday going well? I hope so. We've actually got a lot to go through today, but I'm not going to dive too deep into any of it - there's just not enough room or time. Maybe that's better for you guys anyway. Let's just get started with the bigger picture. Then we can get into the near-term market stuff.


Time To Lock It In On LEDS

Like It or Not (and We Don't), the Rally's Still Intact

Jul 9, 2020

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01:13 PM PST

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I know it was a trade glitch yesterday and Q1's weaker-than-expected GDP that got the blame for the market's lazy pullback today. Honestly though, I don't think either reason is the actual culprit. I suspect investors are just still not convinced the market's ready to keep rallying, and are holding back each time the indices start to toy with new highs.


We'll get to that in a second. First I want to reiterate something I suggested back on April 9th. Only this time, there's a billionaire that agrees with me, and he's putting his money where his mouth is.

The Anatomy of a Great Trade, From the Guys Who Actually Made the Trade

Jul 9, 2020

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01:13 PM PST

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We hope everybody's Thursday is going well. The market sure made things interesting today, though it's made things interesting every day for the last month, so today's action is nothing new.


I do have some thoughts on where today's action leaves us (and the market), but honestly, I'm far more interested in how traders are going to respond to today's action come tomorrow. The S&P 500 as well as the NASDAQ are approaching recent highs because of today's surge, which would normally be bullish. But, I've got a nagging feeling this is all just a setup for another pullback; brushes with prior peak levels have a funny way of doing that. We'll just have to see. Check back tomorrow, when we expect to have some clarity.

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