The early bird gets the worm, even in the stock market.
It’s really no different on Wall Street than in nearly any other part of life. If you have the correct knowledge before everyone else, you have a great chance to both protect yourself and profit.
That’s why understanding the market’s recent actions could be vital RIGHT NOW…
As I said earlier this week, you should be concerned about the stock market’s uncertain position at the moment.
While this drop off may be nothing more than a healthy correction, it could also be the end of this bull market!
And in order to really protect your investments, you need to stay vigilant.
I think it’s worth telling you that both my publisher, Jim Samson, and I were quite close to all but writing off this bull market yesterday as the price of the benchmark S&P 500 (SPX) fell to its 150-day moving average.
If it fell any more, yesterday could have given us the signal we need to forget about this market climbing much more.
Either way, I’m still not convinced that the SPX will even reach back up to its recent highs over the 2,000 mark.
But since the market did rebound after its fall all in one day, we’re still in a state of uncertainty. The market is the only thing that can truly tell us where it’s headed, so we just have to wait for it to give us something concrete.
And while we focus on the big-market indexes, we can also pay attention to other indicators as well.
The Russell 2000 Index (RUT) measures the performance of the small-cap segment of the market, which some people call the real Main Street.
Check out the RUT chart from Stockcharts.com:
Since about March of this year, the RUT has plateaued. But now, if you look all the way to the end of this chart, you can see that it’s currently nose-diving!
This index includes the smallest companies in the market—the kinds of companies that can’t weather a financial storm like some of the large-cap companies can for a period of time.
If this index is showing the demise of the small-cap market, the rest of the market could soon follow. We must and will be ready for that to happen.
If you want to know how to protect your current investments and even make profits in a bear market just like a bull market, check out our Stock Code Breaker course, which teaches all of that and more.
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