Congratulations! The Market Correction Is Over

This year started with much promise.

It was the best start to a year since 1997.

Everybody was excited about the amount of money they were making from the stock market.

And we were all “geniuses” for staying invested during that surge higher.

Then something happened — the stock market entered a correction.

But whether you rode out the market ride, dumped your strategy and started day trading, or went to cash, I have good news — the market correction is over.

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And while it didn’t last too long, corrections usually last for just a month or two.

It was a turbulent market. So I want to congratulate you on surviving the first market correction in nearly three years.

Now let me explain why it’s over, and how you can profit.

The End of the Market Correction

There were plenty of rational reasons for a correction — profit-taking, rising interest rates, trade worries, etc.

But the one thing that will lift the stock market out of a correction is earnings.

And if you look at stocks that are in the S&P 500, and how they did on earnings over the first three months of the year — you wouldn’t have guessed the market went into a correction.

According to FactSet, we saw the highest earnings growth in a quarter in seven years.

There was a record-high number of companies issuing positive earnings guidance.

And earnings estimates, what analysts expect a company to report, increased for the first three months by a margin that is off the charts.

Going back to 1996, when FactSet began tracking the data, the highest percentage increase in estimates for the first three months was less than 2.5%.

For 2018, it was 7.1%.

Take a look:

Market Correction Is Over

This doesn’t look like these companies are headed to the next recession just yet.

As you can see in the chart, strong increases to earnings, like in 2004, 2010 and 2011, didn’t signal a market crash was just around the corner.

Instead, it was the start of the next significant move higher for the stock market. And that’s why I consider the stock market correction officially over.

Today is no different than the last couple of times this happened. And it represents an enormous profit opportunity.

All you have to do is continue with the strategy that has made you money in recent years — because it’s going to work again.

Remarkable Opportunities Are Ahead

See, investors sometimes go through market corrections and bail on their strategies that have made them tens of thousands of dollars over the last few years.

They do this because when the market gets extremely volatile, different strategies may work better for a short time.

But now is not the time to give up on your strategies.

They are going to continue working for you.

And that’s the underlying message I want to share with you.

Because the market correction is over, you’re going to want to be invested now.

I have a service, Quick Hit Profits, and it’s designed to benefit from certain earnings announcements.

I just finished telling its readers two things — this bull market isn’t over, and the opportunities coming up are going to be remarkable.

I can’t wait for the money we are going to make over the next three months, and I want you to be prepared to profit.

Regards,

Chad Shoop, CMT

Editor, Automatic Profits Alert

  • Charles Burton

    Since the markets (Dow and S&P) haven’t gone substantially below their 200 day MAs, I doubt the correction is over yet. This is something which normally seems to occur in corrections after a longish period of gains. There can always be exceptions, of course, but I would like to see such a drop to set up a bigger gain. An exception likely would result in little gain beyond the previous tops, and perhaps a harder crash to come.
    Chuck Burton

  • IMissLiberty

    Box office records fall every year, yet fewer and fewer people, as a percentage, go to the theatre. This is what happens when you use a variable measuring stick like the dollar.

  • Ektor

    You could sure see that today(end of the correction)…it just looked like more fake buying by computers until late in the afternoon when it all went south. It would not surprise me to see the SPY test the 225 level, which is the 200 EMA on a weekly chart. We have not touched this M/A since February of 2016. That is perhaps an outside chance of happening worst case. Never fear though, before the end of the year, mindless buying will return to the markets and hardly a whimper will she make as she goes to new highs.

  • OC GMBeverlyHills

    If this newsletter were so good at trading, they would not be writing newsletters to scam people.
    The market trend is bearish (lower highs and lower lows) so one should sell the rallies until a the trend changes back to a bull trend (higher highs and higher lows)

  • guest

    …..and I refuse to purchase one more til I start making some money with the 3 I’ve already purchased! I’ve lost so much money on account of their newsletters and recommendations….it makes me long for the day when Larry was a major contributor! 2017 should have made a killing and I lost so much because they kept thinking there was a correction coming so don’t go all in.

  • Mike

    The markets were going to the moon (Up over 200% since Obama’s moves in March 2009), then Trump got elected (?) and brought all of his baggage and erratic behavior and his “drain the swamp” friends and here we are with the markets doing well one day, then he goes into another twitter rage and the markets crash. As long as Trump is President, I beieve the markets will be as erratic as he is…. Personally, I stepped aside in early February as I believe it is only going to get worse as Muelller gets closer and closer… 🙁

  • CF ******

    The correlation between earnings and the stock market is actually not that good. Look back at history and you will see some increases with good earnings and some decreases with good earnings. The whole idea that good earnings drive markets upward is a canard that just keeps getting repeated. Kinda like all the reasons given by the talking heads on CNBC for market trends….watch closely and you will see great inconsistencies in their prognostications.