LoginMy Member Benefitsarchivesresearchyour teamabout usFAQLog out
×
Hot Topics
Share
Access Your Profit Alerts

market correction

Article Index

What Drove the Markets Higher Is Now Knocking Them Down

By , Capital Wave Strategist, Money Morning • @WallStreet_II -

Good corporate fundamentals (meaning rising revenues), margins, and profits drove big-cap technology stocks higher. Those factors drove their respective indexes higher, which attracted millions of passive investors into indexed mutual funds and ETF products.

Now, the virtuous cycle that caused markets to spiral upwards could be morphing into a negative feedback loop. But markets in the U.S. aren't going down because fundamentals are deteriorating.

They're going down because market-moving tech darlings stalled out – then rolled over.

I have good news, and I have bad news. The bad news is the selling's probably not over and could get worse.

The good news is, if we fall far enough and fast enough, this sell-off could be a generational buying opportunity.

Here's what's really going on, why this sell-off (if it's big enough) will be the time to go all in, and what you can do to shield yourself from any market disaster...

This Standoff Could Paralyze the U.S. Economy

By , Economist, Money Morning -

Mark your calendar: Economic recovery will likely stop in its tracks on Aug. 1, 2018.

And you can blame what we'll call a "gray swan event" (stick with me) that's looming right in front of us...

This could get ugly - the retail sector could be further damaged, while consumer goods and even some of the mighty FANGs might take a beating.

What's more, there'd be a pretty significant disruption in everyday Americans' lives.

On top of it all, no one is talking about this correctly. Not Barron's, not The Wall Street Journal, not Forbes, not CNBC, not FOX.

And so millions of Americans, millions of investors among them, are set to be caught completely off guard at a time when barely a month remains to prepare.

Don't be one of them...

The Market Is Sending Us a Big, Red Warning Now

By , Capital Wave Strategist, Money Morning • @WallStreet_II -

GDOW chart

It's obvious when you think about it, but lots of investors struggle to come to grips with this fact: The stock market is like a living creature whose personality mimics the psychology of the investors who give it life.

If investors are calm and optimistic, the market naturally reflects that positivity.

But when investors are unsure about the immediate future - like they are right now - and have to juggle competing and complementary apprehensions about... politics... interest rates... economic growth... and whether the mega-cap tech stocks they believed were the Holy Grail are about to be subject to all kinds of new regulations... their nervousness manifests itself as volatility, mirroring their fears.

That's where the market is now - where it's been since February, in fact.

Goodbye, Steady Eddie - hello, Nervous Nellie.

When that happens, the market does what it always does: It takes the path of least resistance.

Where's that path heading now?

I'll show you. Buckle up...

Stocks Worth $2.2 Trillion Are "In Play"; Here's What to Do

By , Managing Editor, Money Morning -

The market's biggest, most powerful companies, with stocks worth a total $2.2 trillion, are currently caught up in a whirlwind.

No one reads stocks like our D.R. Barton, Jr., and he's here to tell you exactly what's in play...

What's Next for Your Money After a One-Day $768 Billion Market Loss

By , Chief Investment Strategist, Money Map Report • @kfgtotalwealth -

Keith Fitz-Gerald

Following a one-day $768 billion market loss, our Keith Fitz-Gerald is going to show you what's next for your money..

Read more...

How Shorting the VIX Blew Up the Market, and Why It Could Again

By , Capital Wave Strategist, Money Morning • @WallStreet_II -

Market Correction

If you didn't know what the Chicago Board of Options Exchange Volatility Index (VIX) is, you almost certainly do now after the correction.

Plenty of regular investors don't realize how the VIX works, though - what makes it move up, down, and sideways.

You can't trade the VIX directly - it's a mathematical calculation, after all. But a whole buffet of easy-to-trade, not-so-easy-to-understand exchange-traded products (ETPs) makes it possible for anyone - mom-and-pop retail investors, institutional traders, risk parity funds, and newly minted hedge funds - to bet on the VIX moving up, down, and sideways.

These folks saw the VIX doing a whole lot of nothing for more than a year and bet accordingly, to the tune of tens of billions of dollars.

And for a time... it was good (notice I didn't say "smart").

But earlier this month, when human and silicon investors and traders got spooked, the VIX spiked - spiked like never before, in fact - jamming an ugly, red-hot poker into that great big, happy, feel-good short volatility bubble.

All the investors and traders out there who spent a year or more picking up pennies in front of a double-decker bus got killed when their favorite ETPs blew up.

What happened after that... well, we're still dealing with it and could be for some time. The market's trying for a run higher from here. It's already pared about half its losses from the depths of the correction, but the road isn't as smooth as it was just four weeks ago.

Amazingly, the trade that started this whole mess is still out there. Sure, a few high-profile short volatility vehicles imploded, but it's still very possible for this to happen all over again.

Here's how...

I Don't Think the Bull Market Is Going Anywhere

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks -

Bull market

First things first: Don't panic. The raging, grinding bull markets are "officially" in correction territory.

It's a healthy thing.

Though I've been consistently bullish in my outlook over the past year or so, I've said that a 3% to 5% dip in the markets might be in order and that a correction like this would be welcome.

Why? It's not that I enjoy watching stocks fall... unless I'm planning to recommend that my readers play the "rubber band snap" (although I did, and they made a quick 50% gain). 

Rather, this downturn is good for the simple reason that we needed to see that capitulation.

Let me show you what I mean, and why this week's rough sledding has been a good thing, even in the very short term...

My Chart Shows Why We Can’t Trust These Market Highs

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks -

Good news is good news again - for now.

The Labor Department's announcement that July unemployment held steady at 4.9% while adding a better than expected 225,000 jobs was enough to snap the four-day pullback and get traders in the mood to buy.

Those numbers don't necessarily reflect the street reality of the economy, but of course they were enough to get the S&P 500 to yet another new all-time high, even if the Nasdaq Composite, Dow Jones Industrials, and the Russell 2000 didn't quite make it.

This is a near-term bullish development, especially when you consider that, before this recent upward trend, we've gone 14 months between all-time highs.

But... when you see the chart I'm about to show you, you'll agree it's not quite time to pop the champagne corks...

The Market Crash Will Start by June 20

By , Global Credit Strategist, Money Morning • @MichaelELewitt -

super crash

Today I am issuing an official Super Crash Warning. That means we are on the verge of a serious market crash in the near future, which I now predict will hit by summer, June 20, 2016, and it's not going to be a good one.

It must seem like I never have any good news for you, but it's my job to see the world as it is, not as I'd like it to be. And what I see is things getting worse by the day...

$GS, MS, NYSE:BAC, NYSE:C, NYSE:JPM

Why a Risk Management Plan Is Crucial in Volatile Markets

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades -

trading plan

Researching, planning, and executing your plan perfectly is key to finding moneymaking trades, but you also need to account for risk.

All successful traders have and use a risk management plan -- it's your guide to profits even when everything is against you.

How I Predicted the Global Market Sell-Off

By , Capital Wave Strategist, Money Morning • @WallStreet_II -

dow jones today

Making millions in the stock market is simple - all you have to do is predict its direction. Easier said than done, right? Not necessarily.

While most of Wall Street and the world didn't see this global market sell-off coming, I did.

Here's how I made those predictions - and a ton of money being on the right side of different markets... and how you can, too.

How to Make Big Money During This Market Sell-Off

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades -

stock market crash

There's are a lot to be concerned about, given the market sell-off, but there's an even bigger concern coming right from those who deem themselves to be financial experts.

This particular advice could be catastrophic in 2016. The truth is, there are moneymaking trades when the markets are up... AND down.

Here's what you need to know...

These Two Words Explain All You Need to Know About the Stock Market Sell-Off

By , Defense + Tech Specialist, Money Morning • @Robinson_STI -

super crash

Understanding this stock market sell-off may sound little more than academic at this point. Who cares why something happened? You want to know what to do now.

But you can't go on the offensive - you can't make the right moves - without first understanding the sell-off.

And to understand its most basic elements, you really only need to know two words. So, let's get cracking...

Keep This in Mind When the Stock Market Plunges

By , Chief Investment Strategist, Money Map Report • @kfgtotalwealth -

stock market today

Millions of investors are struggling to come to terms with yet another big down day and with good reason - stocks have now taken out August lows and this is the single worst start to a new year on record.

Will there be a massive stock market crash in 2016? What's the best course of action for your money?

We have all your answers here...

How to Stay Protected (and Earn 164% More) When the Market Tanks

By , Chief Investment Strategist, Money Map Report • @kfgtotalwealth -

how to stay protected

Over the past 12 months we've had several major market corrections and, each time, I've counseled you to buy into the madness because history shows beyond any shadow of a doubt that's the path to enormous profits.

And, each time, I get a blizzard of emails, and the past few trading sessions have been no exception...

...but what happens if the markets go down further?

That's a logical question.

So I thought we'd answer that today with a quick look at how to combine two tactics for maximum profits and minimum risk, especially on big down days.

It's powerful stuff, and not just because of the profit potential.

The real message here is that the tools I'm going to share with you today can give you the confidence boost you need to buy on big down days when everybody else and their mother has their finger on the "sell" button.

As usual, I've got a few easy-to-understand examples so you can put what you learn to work straight away.

Here's how to protect yourself from a market dislocation - and profit when everybody is losing...

Today's Markets
DJIA -327.23 (-1.27%) 25,379.45
NASDAQ -157.56 (-2.06%) 7,485.14
S&P -40.43 (-1.44%) 2,768.78