As I’ve said before, I feel it’s my duty with this column to not only give you opportunities to profit, but also to give you protection from financial dangers when I can.
Right now, protection is more important than profits.
And this is why…
Due to some of the events regarding the stock market over the past few weeks, it has become clear that THIS bull market is now injured beyond immediate repair.
I will explain further in just a moment, but first I would like to make something clear…
This bull market is no longer raging, and we are now entering a stage of transition. When that is over, it will be because of one of two things.
Either a new bull market will begin, taking the market above the current plateaued levels. Or the more likely scenario of a bear market starting will take place, driving the market down.
Don’t be afraid either way—we can make money in both markets, and even in this current period of transition.
Why This Bull is Hurting
While it may not be what everyone wants to hear, the evidence of the past few market weeks is undeniable proof of this bull market dying.
The 200-day moving average is the average price of a stock or index of the past 200 days. Keep that in mind while we look at this chart of the benchmark S&P 500 (SPX) index from Stockcharts.com:
This is the long-term chart, so the drop at the end of the chart isn’t quite as dramatic as it is on the short-term chart. However, you can clearly see that the SPX dropped below its 200-day moving average (200 DMA) just recently.
That marks the first time it has done so in almost 2 years!
Many self-proclaimed ‘Wall Street experts’ have been yelling that a correction was necessary to feed this bull market, but they don’t know how to read a chart.
The correction they wanted occurred, but it brought an end to the climbing market.
Now, in the short term we can continue earning profits by playing the swings of the market as it will rise and fall in a relatively small plateau window.
However, if you have a nest egg—a particular chunk of your money that you simply cannot afford to dig into—this is not the right time to trade with it. Instead, wait a little while for the next bull or bear market to show itself and then we can guide you toward the right type of investments to earn you profits!
Until then, I’m excited to open up my trading arsenal and make money on the upswings AND the downswings of the market! If you would like to do the same, look for invitations to join my Tech Stock Jackpot service.
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