Last Monday, I shared a chart with Money Map Report subscribers and suggested they may want to batten down the hatches because I saw a 30- to 40-point drop happening by the end of the week.
Now I want to share that same chart with you plus a new one - and encourage you to do the same thing.
The shellacking the markets took last Thursday is the most powerful warning sign we've seen yet that things are not what they seem in the financial markets. For lack of a better term, it's a bearish omen, despite Monday's recovery.
Today I want to talk about what that means for your money and what you can do about it in the name of protecting your money and, more importantly, the pursuit of profits.
Contrary to what you might believe, not all bears are bad news.
Let's start with the chart....
Seize Massive Wins (Without Losing Sleep)
History is literally chock-full of compelling examples of small-cap stocks delivering 1,000% returns to shrewd investors who got in early.
With those kinds of returns possible, it's no wonder investors are so excited by small-cap stocks.
Unfortunately, though, in many cases that same excitement leads less disciplined investors to throw away all sense of risk management and proper portfolio structure in the pursuit of outsized gains - and that's a big mistake.
For every story of a $5.00 stock exploding and becoming a $50.00 stock, there are countless examples of companies flaming out, leaving investors with worthless shares.
That's why it's so important to have a risk-management strategy in place - and one that's tailored for small-cap stocks.
That way you can seize the great opportunities for massive wins... and still sleep easily Full Story.
Triple-Digit Gains… With Easy "Insurance" Against Risk
How do single-day stock gains of 40%, 50%, 75%, even a 100% or more sound? If you're anything like me they sound pretty darn great.
Those kinds of gains happen almost every day, but the mainstream financial media would much rather focus on recent stories such as: FB jumps 14% on increased mobile revenue, GOOG rockets ahead 13% on higher top line, or TSLA up 8% on higher than expected sales of the Model S.
Small-cap biotech stocks can deliver triple-digit gains – or they can crash if clinical trial results disappoint.Here's how to limit your losses...
My "Sominex Strategy" for Big Profit in This Rocky Market
"Look at market fluctuations as your friend rather than your enemy; profit from folly rather than participate in it." -Warren Buffett
It's tough to argue with the "Oracle of Omaha." And Buffett is right: Investor "folly" creates some of the biggest moneymaking opportunities you'll find in stocks.Just look at the whipsaw-trading we've been seeing in recent weeks...
Cadence Pharmaceuticals (Nasdaq: CADX) Stock Climbs 26% in Latest Biotech Deal
What a year so far for biotech stock profits...
Another consolidation in the active biotech sector came Tuesday when Cadence Pharmaceuticals Inc. (Nasdaq: CADX) agreed to be acquired by Mallinckrodt plc (NYSE: MNK) in a $1.3 billion deal. The move sent CADX up 26%.
Under terms of the deal, Dublin, Ireland-based Mallinckrodt will pay $14 in cash for each share of San Diego, Calif.-headquartered Cadence. That's a 26% premium to Monday's closing price and a 32% premium to the stock's average 30-day trading price.To continue reading, please click here...
Best Stocks to Buy Now: A Money Morning Weekly Recap
Best stocks to buy for the week ending Feb. 7, 2010: A robust two-day rally late last week helped the Dow Jones Industrial Average and the S&P 500 Index post their best week of the year, with gains of 0.6% and 0.8% respectively.
Despite the solid showing, the 30-stock index remains down 4.72% year to date. The S&P 500 is off 2.78% since the start of the year. And the Nasdaq, which rose 0.54% last week, is lower by 1.21% so far in 2014.
Indeed, this year has been marked by volatility, with the Dow swinging up or down at least 100 points in intraday trading on 25 out of 26 days since the start of the year.To continue reading, please click here...
Take Profits… While Everyone Else Takes Cover
Volatility has certainly defined the markets in the early weeks of 2014.
But rather than lock in losses by running to the sidelines, instead consider the profits that the boom/bust crowd are leaving behind...
You see, the market to date has dropped just 6% after last year's surge of some 28%.
It's only the investors expecting an uninterrupted bull market party from last year who were caught off guard.
So let's examine the market factors they're wrong about.
And then convert them into a rock-solid, income power play...
These "Triple Threat" Firms Will Deliver Your Best Returns in 2014
As readers of my Permanent Wealth Investor know, alternative money management firms are some of my favorite securities for investors to own.
After a great run in 2013, those firms will have a hard act to follow in 2014.
But, here's the thing: the same sources that drove income last year for these companies are firmly in place. And will be throughout 2014.
So, what's so great about alternative money management firms?
They're great for both growth and income-oriented investors because their revenue comes from a "triple threat" of catalysts that can drive your best returns in 2014...
- Activist Investor Nelson Peltz Delivered a 97% Return – and Now He's Targeting This Stock Of all the prominent activist investors, the most successful is Nelson Peltz of Trian Partners, who has compiled a stunning track record of moving stocks higher - much higher. For instance, he's squeezed a 97% return out of Wendy's, and 77% out of Ingersoll-Rand. Now Peltz has a new target, which for us means a fresh profit opportunity...
Double Your Opportunities for Profit
In their effort to capture all the profit they can, many investors focus exclusively on buying stocks. That's too bad because it means they're missing out on half the profits - literally.
I say that because the markets move in two directions - up and down - which means there's plenty of profits to be had in both directions.
George Soros, for example, made a cool $1 billion in a single trade that famously almost broke The Bank of England in 1992.
John Paulson made billions off the housing crisis when it hit by going against the grain.
Doug Kass of Seabreeze Partners is known for betting against the herd and laughing all the way to the bank.
Obviously, shorting stocks isn't for everybody - it takes a lot of guts and more than a little conviction to do it profitably. Not to mention a healthy dose of discipline.
But done right, it can really boost your profits...
Three Shocking Market Predictions for 2014… And the Evidence to Prove Them
Each January, we hear a chorus of pundits making predictions about where the markets will go in the 12 months ahead. The number and volume level of the "predictions" is matched only by the utter lack of evidence to back them up.
These talking heads will be the first to shout "I told you so!" But when they get it wrong, well... the silence is deafening. Their predictions are of little use to us.
But predictions themselves can be very useful. Making a well-reasoned prediction can be a great way to crystallize your thinking on important issues. It's also a good filter that can help you select which trends and sectors to embrace - and which to avoid - over the year ahead.
With this in mind, I have three predictions, all backed by compelling evidence, that will surprise you... and help you make a lot of money this year.
Proof You Can Double Your Money (in a Single Day) Without a "Pro" Edge
On Monday, members of the Small Cap Rocket Alert family kicked off 2014 with a bang when one of our recommendations, a small-cap biotech company, rocketed ahead 90% in a single day's trading.
A 90% gain in a single day is fantastic, but some of my subscribers reported amplifying those returns by way of options - pulling single-day gains of 700%, 776%, 1042%, and even 1,500%.
Typically those kinds of returns are relegated to professional traders using proprietary computer programs to maximize gains while keeping risk at a razor-thin level - but they don't have to be.
I'm going to talk today about my favorite way in 2014 to buy income-producing stocks using one of Wall Street's favorite strategies: other people's money... Full Story
The Best Way to Compound Your 2013 Gains
With the exceptional, unpredictable year that was 2013, we have a one-time opportunity to "mine" its insights... and make even more money in 2014.
The trick, as you'll see, is to block out the noise, stay invested, and focus on three key numbers...
Make the Same Returns as the "Rich Guys" – Now
Large, successful investors have the same goals as smaller ones: raking in big profits.
But these "rich guys" often have more at stake when they make their trades: enormous investments.
For professional investors, there's more still: reputations, public scrutiny of their performance, and often their job...
It makes sense that they are going to go after big money...and do it smartly.
We can follow their lead and rack up the same huge returns...
But the key is knowing the right "rich guys" to follow.
After years of working as a Goldman Sachs trader, I've picked up the ability to spot them.
Here's the best way you can, too...