Two Big Reasons I'm Excited for the March Markets

Mr. Shelburne was my favorite teacher of all time. He taught me Latin II (yes, they still teach that in public school) and then 10th-grade English. He also happened to be one of the humblest, kindest, and funniest men I've ever met - a gem of a man.

Like lots of high school English students, we studied Shakespeare's masterpiece, "The Tragedy of Julius Caesar." And because Mr. Shelburne read and taught the play with us, it's still my favorite Shakespeare play.

I mention this because we're fast coming up on the "Ides of March." Of course, "Beware the Ides of March" was the prophetic warning given by the oracle in the play, the very day Caesar was stabbed to death by disgruntled senators.

The play is probably the only reason any of us remember March 15, but I'm looking at some charts and numbers that suggest investors and traders are going to remember this month for some altogether different, much happier reasons from now on...

Turns Out Bears Should Beware the Ides of March

To understand where we're headed, we have to look at the last two weeks. This time is remarkable because we've seen 12 days of consecutive new all-time highs for the Dow Jones Industrial Average.

This hasn't happened since 1987; we've tied the record.

Now, I know what you're thinking: "Ah, D.R., wasn't the 'Black Monday' crash back in '87? When the market dropped, like, 22% in a single day?"

We'll you're absolutely right, it's true. But Black Monday happened a full nine months after the consecutive high run that started the year.

What's more, by the time the markets crashed on Oct. 19, 1987, the markets were ridiculously, cartoonishly, almost unfathomably stretched to the upside - up a whopping 43% for the year. And as my Stealth Profits Trader readers know, the market works like a rubber band; an extreme stretch precedes an extreme snapback.

Besides, as a modest consolation, the Dow actually finished up 2% for the year in 1987.

We talked two weeks ago about the fact that markets rarely crash from all-time highs. Some more technical formation is usually required involving pullbacks, rallies to lower highs and, importantly, a reduction in market participation or "breadth." So take the bearish howls you hear from certain analysts with a grain of salt.

Here's what I think is really going to happen...

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This Rally Could Get Even Stronger

As my Stealth Profits Trader readers can tell you, I trade on the power of data. You can't beat it - it's why we've closed out 16 triple-digit gainers since Jan. 3, 2017.

And the data, backed up by several studies, shows a very high probability that March will spool out to the upside. We should see U.S. stock indexes continue to head higher.

Quite a bit higher than usual for the year, it turns out...

The first data point shows that March has been the month with the highest returns when we look at the last 10 years of data. Here's a chart put together by LPL Financial comparing each month across three time frames:

March markets

As you can see, March is quite strong across all three time frames - and it's especially strong over the past 10 years.

Ryan Dietrick, one of the fine young quantitative analysts (think "rocket scientist," but working in the markets instead of NASA) working today noted that, "Since 1950, the S&P 500 closes in the green in both Jan. and Feb. - like it did in 2017. The final 10 months are higher 24 of 26 times, and up 12% on average. Not bad."

"Not bad," indeed. That's an understatement, kind of like saying Julius Caesar had a "rough day" on March 15.

And, believe it or not, it gets better! April is set to be very strong, as well.

And that brings me to the second reason I'm so excited about what's coming up ahead.

The Best Way to Profit on the Coming Bull Run

Like I said, I trade on the power of the data. But I use all those data points in a unique system that looks at all 4,000 stocks trading on U.S. exchanges and isolates the handful of stocks currently in very specific, extreme situations that offer the absolute profit potential.

And there's a lot of potential in the next couple of months. We may have booked 16 100%-plus gains over the past three months, but that chart above shows that the future could be even better.

This is the kind of profit potential that makes millionaires.

So starting today, at 3 p.m., I'm going to show everyone how I zero in on these kinds of profits. I'm launching a new, free service. I call it The 10-Minute Millionaire, because you really can make the moves I'm going to recommend in 10 minutes, on regular old stocks.

I'll be giving regular, twice-weekly updates on this service starting March 9. We'll move quickly, because, as you've seen in the chart above, we're heading into what could be some of the most lucrative weeks of the year.

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About the Author

D.R. Barton, Jr., Technical Trading Specialist for Money Map Press, is a world-renowned authority on technical trading with 25 years of experience. He spent the first part of his career as a chemical engineer with DuPont. During this time, he researched and developed the trading secrets that led to his first successful research service. Thanks to the wealth he was able to create for himself and his followers, D.R. retired early to pursue his passion for investing and showing fellow investors how to build toward financial freedom.

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