Last week, I wrote that in its quest to defeat inflation, the Federal Reserve wants to make investors like us poorer. The “wealth effect” says happy and bullish investors tend to spend more money than sad and bearish ones. So, as far as the Fed is concerned, plummeting portfolio values are a good thing. But that’s only part of the story…
Bears, this one’s for you! Chad Shoop’s Big Money scanner picked up a multi-million bearish trade that just makes sense…
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.
MACD is a popular momentum indicator, but it has a number of issues. If you want larger gains and smaller holding times, Mike has a solution.
Chad Shoop is putting the Greed Gauge to the test… How does it stack up to the Big Money in a bout of volatility?
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