So, it might seem odd that I’ve recently talked about catalysts impacting stocks in phases or following a neat pattern like a row of toppling dominoes. That almost implies that some orderly course of events can make the next market move predictable. But as I’ve demonstrated throughout 2022, it’s possible to spot the next big move when you combine experience with a disciplined and objective approach. That’s why I want to show you the next shoe to drop for stocks.
Capitulation is a signal of mass panic among investors. It’s the ultimate washout and tends to precede some of the biggest gains in stock market history. But we just aren’t seeing it yet. Instead, since May 20 (after two consecutive months of losses for the major indices) … we’ve seen the complete opposite. Investors are ravenously buying the dip in the latest bear market rally. Yet, as Clint explains in today’s video, you should still keep your eyes out for capitulation. Because when it does come knocking, it will have a massive impact on the Fed’s next move.
Over the weekend, it sounds like Federal Reserve Chairman Jerome Powell also received a call to his principal’s office … this one belonging to President Biden. But I’m fairly sure that Powell isn’t being recognized as central banker of the quarter. Ahead of midterm elections, Biden is reaching for anything that can be done to tame inflation. And unfortunately for us all, there is only one thing Powell can do…
What if I told you that there’s a much simpler, better way than trying to time the bottom? It’s a strategy that turns the old mantra on its head, and one that’s been proven to turn out big profits by academics and money managers alike. It involves targeting a group of select stocks that permeates the world of quantitative and algorithmic trading systems. Simply put, the better strategy here is to “buy high, and sell higher.”
Well, one by one the dominoes have fallen. After plunging nearly 20% since the start of the year, does that mean we’re on the cusp of the next 20% down leg? Actually, I see quite the opposite…
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