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Whenever you hear how “the market is rigged,”...
It’s usually because somebody blew up on a trade and wants to blame it on others.
Take crude oil, for example.
Earlier today, headlines suggested OPEC+ may increase production.
As a result, crude oil prices get clobbered.
But it gets more interesting.
Barely one hour after oil prices got crushed…
OPEC+ denied any plans to increase production, causing a massive round trip.
Traders who got in or out too quickly sustained painful losses.
And I won’t be surprised if they blamed it on the rigged game.
But it doesn’t have to be that way.
Because no matter how rigged the market is…
You can find profitable levels in any market with the proper roadmap.
Case in point:
I’ve warned my readers about a black hole (designed by the elite) that will swallow most people’s savings and create a rare profit opportunity over the next six months.
You don’t need to chase the bottom or go bargain hunting to profit from this.
The road has been paved; all you need do is follow the smart money.
Usually, I only share these opportunities with members of my $1,997 trading advisory.
But I’m doing something special for my readers this Black Friday.
And feel free to reach out with any questions.
A few weeks ago, I told my readers about a trader who lost $190,000 in one week.
He thought the market had hit bottom and was confident he’d strike it rich by buying a bunch of Wall Street’s favorite stocks — only to lose $190,000 in a blink.
His retirement plan is screwed, and life has become unbearable.
I bring this up because what happened to him could happen to millions of Americans as a new “$20 trillion wealth wipeout” spreads like wildfire across our financial system.
I’m talking about an “invisible wealth eraser” 10x worse than inflation.
It’s set to erase $20 trillion from the stock market over the next 12 months and will plunge millions of hardworking Americans into a black hole of financial pain.
Stan Druckenmiller — the billionaire investor famous for calling the 2020 crash— recently warned the outcome of this invisible threat is “a lost decade for investors.”
If you’re caught unaware, you wait ten years or more just to break even.
Remember the 2008 financial crisis?
It cost many their jobs, savings, and homes.
And it took ten years for some to recover their losses.
A similar story is playing out today, but the stakes are much higher.
That’s why I feel compelled to come forward and warn my readers.
To come out unscathed on the other side of this historic wealth wipeout, with your 401K, IRA, and brokerage account intact, you can’t leave this to your broker or the Fed.
They’re too focused on "fighting inflation” even to take notice. And everybody knows Biden is more concerned about “protecting pronouns” than protecting our wealth.
That’s why you need to take responsibility for your investments before it's too late.
Tomorrow at 12:00 pm ET, I’m hosting a live broadcast to reveal this new threat and what I’m doing to protect my portfolio and grow my wealth (there’s a massive upside).
I’ll show you undeniable proof that the Fed tragically overlooked the catalyst behind this new threat, and you’ll get the help you need to come out on the other side unscathed.
And feel free to reach out with any questions.
From the moment we wake up to the moment we fall asleep…
This company’s tech is all around us in many ways.
From your phone to your laptop, your television, coffee pot, washing machine, and oven. From tractors driven by the farmers growing your food, to the ventilators at your local hospital, and the missile detection systems monitored by Air Force personnel.
Without it – our modern life would grind to a halt.
And dozens of industries will shut down almost overnight.
I’m talking about “semiconductors.” Otherwise known as computer chips.
If you’ve been keeping up, you may have seen news stories about the recent “chip shortage” leading to mass shortages and soaring prices.
That’s because, without computer chips, companies can’t manufacture anything.
Hence, mass shortages and soaring prices.
When this happens, certain stocks plummet, and certain stocks profit.
Like back in 1999 when a massive chip shortage hit. Motorolla lost 90% of it’s value in the years that followed. Yet, Qualcomm took investors on a moon ride of 3,000%.
One company was caught unaware, the other was well positioned.
A similar story is playing out today and smart investors are getting positioned.
Thanks to the growth of remote work, Artificial Intelligence, and high demand for electric vehicles, the computer chip industry is set to become a $1.3 trillion industry by 2030.
McKinsey reports it will grow at a compound annual growth rate of 12.2%.
If you’re an intelligent investor, that’s music to your ears.
No wonder Warren Buffet bought a $4 billion stake in Taiwan Semiconductor Manufacturing — a company that supplies 50% of computer chips worldwide.
For context, Buffet made his move before Biden’s administration pushed through the “CHIPS & Science Act''.
A bill that injects $230 billion of new cash into the semiconductor industry.
When you control 50% of a market, and its value hits $1 trillion, that's a jackpot.
Of course, if you’re like some of my readers, you’re probably wondering…
“Did Buffet know in advance what was coming? Or he’s just wicked smart?”
It doesn’t matter.
Because our roadmap shows the semiconductor sector is coming into a massive retest.
After last week’s softer-than-expected CPI print…
A ton of trade activity came through at the price levels in the chart below.
A semiconductor stock I bought in 2021 is up by 125%.
Not to be sniffed at.
But my analysis shows it can only get better from here.
Certain semiconductor stock prices are about to “break out”. This means prices will drop below their value before shooting back up for substantial gains like 100% and more.
The problem with “buying the breakout” is that it’s tricky spotting a breakout.
Most people only find out after it’s happened (and the big money has been already made). But it’s much easier when you have a reliable roadmap that tells you weeks in advance when a breakout will happen and how to profit with the best risk/reward setup.
I have a simple roadmap that’s been handing me triple digit returns since 2008.
And this Friday at noon ET, I’m hosting a free webinar where I’ll reveal how it lets you profit from 2-3 price breakouts monthly whether the market is up, down, or sideways.
You’ll see examples of price breakouts that handed us 100% gains and more.
And I’ll share a few “money-in-the-bank” winners you could profit from as the semiconductor industry speeds its way to a $1 trillion market valuation by 2030.
Click here to watch the replay.
Last week’s softer-than-expected CPI print spurred a rally across the stock market.
Leading many of my readers to ask the same question:
“Is this a bear market rally, a bottom, or a sustainable turning point for the stock market?
Here’s what I can say for now:
Investors believe commodity prices will drift lower…
And that’s a bullish signal for the equities market.
But I’m always skeptical when the market moves hard off one piece of economic data.
As billionaire investor Carl Icahn told Fortune Magazine…
“Don’t be fooled — the rally doesn’t mean we are out of a bear market.”
The bottom line?
There is a better time to go bargain hunting.
That said, big investors sold vast amounts of stock as the market plunged this year.
This means they already have large sums of cash to buy stocks if they see any hope inflation will decline and the Fed will slow down the pace of its rate hikes.
Considering Fed Chief Jerome Powell’s dovish remarks last week, we’ll likely see more institutional money flowing into the S&P 500 and Nasdaq over the next few days.
Many stocks are dirt-cheap right now…
And there’ll be triple-digit winners if you know where to look.
But instead of chasing stocks to the basement…
You could eliminate stress by following a simple roadmap that tells you what stocks institutional money flows into and how to profit using the best risk/reward setup.
I have free training that explains how this works; you can watch it here.
If you have any questions, feel free to reach out.
Have a great day.
Take a look at these headlines.
“Stocks extend rally after inflation slowdown” — The Wall Street Journal.
“After months of stubborn inflation, glimmers of hope emerge.” — The New York Times.
“Stocks gain on inflation giddiness.” – Barron’s.
There are dozens more and 13 years of trading tells me this is a trap.
I’ll show you a metric from 2008, so you see where this is going.
But first, let’s back up a little and look at an excerpt from the Wall Street Journal.
“Boosted by hopes that inflation in the U.S. is cooling, stocks capped a volatile week with the most significant gains in months. The S&P 500, Nasdaq, and Dow Jones added 5.9%, 8.1%, and 4.1% for the week, respectively, their best performance since June.
Shares of big tech companies raced higher too. Amazon’s stock added 4.3%, bringing gains for the week to almost 11%. Alphabet shares rose 2.6% and were up about 11% for the week. Even more-speculative growth companies participated in the rally.
Even Beijing’s move to ease pandemic restrictions added to the market's buoyant mood. As soon as health authorities confirmed Beijing was shortening the time travelers must stay in quarantine, prices for crude oil climbed 2.5% to $95.99 a barrel.”
I do not deny this happened.
But there’s so much cheerleading from the financial media most people believe this is a hint inflation could be moderating and that we’re headed to new all-time highs.
With economic data, there’s always a chance of a head fake.
To put this in context, I want to tell you about September 2008.
The entire market was falling apart…
And the powers decided to stop the bleeding by banning short-selling.
Bank stocks rallied by 10% on that news, and many investors threw caution to the wind, betting the farm on so-called “money-in-the-bank” retirement tickers.
What happened next was one of the biggest shocks in financial history.
Forced deleveraging and liquidations on an institutional level took everything downhill.
And it took many investors ten years to recover their losses.
I hate comparing it to 2008, but I think it’s fair to say we are in a bear market.
That’s why I get a little suspicious when we see a big “gap and go” in economic data that suggests an all-time high is on the horizon. Most people don’t realize it, but these “higher moves” have been a source of liquidity for months, and we may see that again.
A great example is the homebuilder ETF – XHB — which provides exposure to the homebuilder's segment of the S&P TMI… and Allows investors to take strategic or tactical positions at a more targeted level than traditional sector-based investing.
Now, of course, the housing market was battered in 2022.
But do you see where the peak is?
That was a colossal move higher on CPI (consumer price index) data — a measure of the average change over time in the prices consumers pay for goods and services.
The chart shows a ton of volume traded on positive CPI data.
Meaning consumer prices dropped that week.
But then what happened two weeks later?
A massive selloff that put thousands of portfolios in the red.
That usually happens when holders use positive CPI data to “get liquid.”
The point here is not to make investment decisions based on what’s in the news.
That kind of approach is unsustainable and will only drive you nuts.
A straightforward approach is to have a reliable framework that gives you a sense of where stocks are headed and what moves to make with the best risk/reward setup.
This way, your investment decisions are driven by logic, not emotions.
In this free training, I explain a simple framework that works for my clients and me.
Feel free to watch and reach out with any questions.
Something strange is happening to the VIX, and you could profit from it.
I’ll give you the details shortly.
But first, if you’re unsure what the VIX is, I can sum it up easily.
It’s a real-time market index representing market volatility expectations in 30 days.
Investors use it to measure the level of risk in the market when making decisions.
And it generally rises when stocks fall and falls when stocks rise.
Today, we’re seeing something different.
The VIX is showing a drop in volatility expectations.
This means even with the Fed’s fourth straight jumbo hike and looming economic data on the horizon, the index is saying there’s no need to keep hiding in equity havens.
Of course, this doesn’t make any sense.
Especially with CNBC predicing the market will drop another 78% before it hits the bottom…. or the recent blood bath in crypto after Binance bailed out FTX.
Still, I’ve got a theory, and it begins with the pattern in this chart:
See that green line to the right?
That’s institutional money gravitating toward shorter-dated SPX options.
It’s an efficient way to gain exposure to stocks without the risk.
If we get through some ugly economic data and more Fed action, the VIX will drop further, leading to price swings you can profit from with $100 or less.
This is something an advanced trader can help you figure out.
But most of my readers can do it themselves thanks to a simple trading roadmap that gets you into the best available setups, regardless of market conditions.
Don’t worry if this sounds a bit advanced.
My free training explains how it works and how you can profit.
I’ve seen total newbies use this roadmap to collect 250% on their first trade.
So whether you’re new, intermediate or somewhere in between…
I’m confident it will work for you too.
Click here to watch the free training.
And feel free reach out with any questions.
After recovering from the nastiest flu of my adult life…
I looked at major indexes and was pleased.
The S&P 500 increased by 0.6%.
The technology-heavy Nasdaq Composite edged higher by 0.5%.
And at the same time, the Dow Jones gained 335 points or roughly 1%.
It was the third-straight day of gains for the major indexes in a week of potential market-moving events: corporate earnings, midterms, and inflation data.
Right now, investors are focused on midterm elections that will determine control of the House and Senate for the remainder of President Joe Biden’s first term.
Wall Street has always preferred a split Congress or White House, whose political gridlock impedes major policy changes, creating a favorable outcome for equities.
One stock that’s benefited from the midterms is Caterpillar (CAT).
The construction equipment company is up 45% off its lows.
And it’s currently shelling out a dividend yield of 2.67%.
That’s in contrast to the manufacturing, construction, and mining industries' yield of 2%.
Looking at the company's dividend growth, its current annualized dividend of $4.80 is up 12.1% from last year. In the past five-year period, Caterpillar has increased its dividend four times on a year-over-year basis for an average annual increase of 8.90%.
If you’re surprised the price of Caterpillar is soaring high without any particular reason, that’s because institutional investors are aggressively trading the stock back and forth.
Earnings growth looks solid for CAT for this fiscal year. The Zacks Consensus Estimate for 2022 is $12.65 per share, representing a year-over-year growth rate of 17.02%.
With that in mind, it’s easy to see why some investors are loading up on CAT.
But this is not to sell you on buying the Caterpillar (CAT) stock.
If that’s all you do, you’ll miss out on the bigger picture.
In my note to clients this morning, I said it feels like 2006 when the big industrials took the wheel and kicked off a strong run in commodities and global growth names.
After four straight quarters of double-digit earnings, many U.S. energy corporations had excess cash. And so, when Wall Street made bets for next year’s winning stocks, the consensus was building around commodity sectors such as oil and gas services.
A similar story is playing out today.
As the Dow Jones rallies like it’s 2006, I’ve found a way to profit from the index.
It’s not the traditional buy-and-hold strategy.
I’m not trying to time the bottom.
And this doesn’t require me to buy stocks or bonds like everyone else.
Instead, I’m leveraging price swings (which is where the money is).
I do this using a simple roadmap called PVA. It shows me where prices are headed and when to cash in with the best risk-reward setup.
The PVA roadmap has given my readers multiple chances to collect 528%, 742%, and even 1,329% in eight weeks, but this new opportunity could do even better.
Feel free to contact me or any team member with questions.