The biggest thing getting in the way of you and your automated profits is your emotions.
I don’t want to single you out, because even the most experienced investors let their emotions get in the way sometimes.
But I’ve just noticed a trigger that’s going to automate your profits, so you don’t have to worry about when you should be cashing in.
These automated profits will barely require you to lift a finger, and they should be flooding your account very soon…
In yesterday’s WSI TV episode, we outlined three very important lines that could automate your profits and completely take emotion out of your investing.
The first trigger for these automated profits has just been set off, and we’re looking at some extremely profitable few weeks ahead of us.
In case you missed the episode, I’ve provided an image of the S&P 500 ($SPX) with the three lines outlined.
That was the image provided to you during the episode. We spoke about the different actions you should take as the market moves between each one.
But since then, we’ve had a trigger set off that means some big money moves for us in the very near future.
Take a look at the chart below and see if you can spot the trigger.
As we pointed out, the S&P 500 has been bouncing along that trend line in an orderly fashion.
I can count about 7 or 8 clear-cut bounces along that trend line since December, but we’ve finally encountered a sign that tells me we could be in for something huge.
You’ll see that the trend was broken within the past couple days.
When a stock breaks through a really strong trend line, it’s usually a very bearish sign. It means that the sellers have come in who bought their stocks at or around that very same trend line on one of the previous bounces.
And once the bears start short-selling, it’s like a domino effect that’ll push the index lower and lower.
But that’s great news for us, because our automated profits are going to be made from exactly this type of movement.
You see, a lot of stocks have been stretched higher than they ever should’ve been. This action has provided a difficult atmosphere for buyers, as it’s much harder to find that perfect entry point.
But as the market starts to descend back toward the 200 DMA (daily moving average), we’ll start seeing a lot more opportunities to jump into trades.
The sweet spot for our automated gains is right when the S&P 500 hits that 200 DMA.
For safety sake, we’re going to want to see a bounce with a small pull-back before we commit 100%, but if this occurs we’re in for some very big gains.
The immediate action you should take after this break of the trend line is to be cautious moving forward with any buy trades.
The movement between that trend line and the 200 DMA will provide some very tricky conditions to deal with, but once it hits that 200 DMA, the sky’s the limit.
Just picture it as if the bull is taking a breath before it continues raging forward.
Of course, there’s always the prospect of the bear overpowering the bull, and that’s where the real fun begins…
