With no real positives to boost markets, important support levels had better hold... or it's over.
The lines I'm about to show you have to hold, or we'll test the Aug. 24, 2015, lows.
And if those lows don't hold, well, say hello to Mr. Big Bad Bear Market.
But don't worry. I'm going to show you how to protect yourself, too...
With no real positives to boost markets, important support levels had better hold... or it's over.
The lines I'm about to show you have to hold, or we'll test the Aug. 24, 2015, lows.
And if those lows don't hold, well, say hello to Mr. Big Bad Bear Market.
But don't worry. I'm going to show you how to protect yourself, too...
A U.S. stock market sell-off in August saw the Dow Jones Industrial Average plunge 10.36% (1,810 points) in 10 days. On Aug. 24 alone, the DJIA fell a whopping 1,000 points before recovering.
The truth is that U.S. markets face even more headwinds the rest of 2015. For example, a Federal Reserve rate hike, a continual slowdown of China's economic growth, and huge, unchecked debts festering in Europe, just to name a few.
Watch to video to see what signals will tell Money Morning Capital Wave Strategist Shah Gilani a stock market sell-off is imminent. Plus, Shah explains his strategy for how to both protect -- and cash in -- on a stock market sell-off:
In a moment I'm going to show you a chart for EOG Resources.
As I looked at the chart for this oil and natural gas development company, and positioned myself for a possible trade, an old song happened to come on the radio. It's a catchy tune that my friends and I used to "try" to dance along with.
Savvy investors know that over short time periods, and especially during bear markets, the saying "cash is king" often holds true. It provides security and allows for bargain hunting when assets are cheap.
However, through times of financial repression and negative interest rate policies (NIRP), central planners along with banks are changing that precept into "cash is trash."
That notion is a dangerous one that you can prepare for and prosper from….
Apple's most recent earnings were nothing short of spectacular, and the headlines reflected that:
... "Apple Beats Estimates on Soaring iPhone Sales" -The Street
... "Apple Beats Estimates with $10.2 Billion in Profit" - AppleInsider.com
... "Apple Crushes iPhone Estimates, Boosts Buybacks" - CNBC
What they should have said is "Analysts Got It Wrong Again."
We've talked in the past about how far off the mark Wall Street analysts can be, and how costly that can be for investors who blindly follow along. It's no surprise - or at least it shouldn't be - given the hidden biases Wall Street holds.
But we haven't talked about how to use that information to your advantage.
Until today.
Here are the two best presents analysts could possibly give you this earnings season...
The 141st running of the Kentucky Derby was not going to pass me by this year without a challenge...
I was hanging out with some financial friends last week when the question got popped along with a bottle of wine.
"Who do you like in the Derby?" I was asked.
I'd never really thought of it, although I enjoy the excitement of the race. But when I heard a few of my friends around the table talking about betting on the long shot, I had to open my mouth.
"You never bet the long shot," I said, knowing that in the business of options trading, nothing could be more clearly stated.
With that, I took a bold step that not only paid off handsomely for me, but can also pay off for my readers.
I've talked to thousands of investors over the years who are absolutely convinced that they need to understand the market's most complicated nuances to get ahead.
In reality, though, success comes down to just five things that I call the Total WealthPrinciples.
Get 'em right and you can make more money with less risk while enjoying a peace of mind that the vast majority of investors will never have. I know that sounds like a tall order, but it's not. Or, at least, it doesn't have to be.
You see, most investors fight the markets instead of going with the flow. And in doing so, they doom themselves to pathetic returns that do nothing but pad Wall Street's pockets.
I want you to understand these five Total Wealth Principles because they will help you harness the awesome power of the markets themselves. Then you'll have the perspective needed to build the financial future and, specifically, the profit potential that you so richly deserve.
Especially now, when weak economic data is building yet another wave of panic among the 99% of investors who will never understand what I'm about to share with you.
Here are five Total Wealth principles to invest by - and pitfalls to avoid.
If you don't have a clear plan for how to play the stock market, you are statistically unlikely to succeed. Over the past 20 years, the S&P 500 has averaged a gain of 9.02%. Yet over the same span, individual investors averaged a measly 2.53% per year.
You can do way better than 2.53% a year as an individual investor.
Stock market predictions are typically bullish in April. According to The Stock Trader's Almanac, the S&P 500 has climbed every single April since 2006 by an average of 3.1%. Since 1950, it has been the best performing month for the Dow Jones.
This monthly spike is usually attributed to strong Q1 earnings reports hitting Wall Street. Numerous companies will also raise their guidance figures for the full year in April.
This year, things aren't as bullish in the short term. Our stock market predictions today call for continued volatility into Q2.
The S&P 500 and other major benchmarks soared today on news the European Central Bank has launched a massive bond-purchasing program.
The ECB's stimulus package will clock in at 60 billion euros a month, up from the 50 billion euros a month many had anticipated. The bank also said it will keep interest rates unchanged.
Here are the other top stories from the stock market today…
China's stock market crash today (Monday) was the worst since June 10, 2008. Chinese stocks fell 7.7% after regulators barred three firms from trading.
The financials sub-index tumbled 9.6%. All 14 banking stocks slumped by their 10% daily limit.
The headwinds are building up, and a 2015 stock market correction could be coming soon.
And Money Morning Capital Wave Strategist Shah Gilani told viewers of FOX Business' "Varney & Co." he "wouldn't put it past the markets turning in the first quarter."
Check out his video appearance to see why he's "negative" on the markets in the short term...
The jittery stock market in 2015 has some investors looking in strange places for answers.
Some look for guidance in unusual market patterns. For example, when the stock market rises in the first five days of the year, it ends the year higher 85% of the time.
Others are looking for connections to short-term events, such as the fall in oil prices or the current cold snap.
But Money Morning Chief Investment Strategist Keith Fitz-Gerald sees those as mere distractions.
For his insights on the stock market in 2015 - and how to play it - watch this video.
Good morning! Futures indicate the stock market today (Wednesday) will open up slightly on the final day of trading in 2014. Today, the markets will close at 2 p.m. ahead of the New Year's Holiday.
What to Watch Today: The markets are reacting to weekly jobless gains, which came in higher than expected at 298,000. European markets remained balanced this morning despite ongoing drama from Greece, where its political future remains uncertain.
Investors could be gearing up for a 2015 stock market correction, even after the Dow 18,000 milestone last week.
Money Morning Capital Wave Strategist Shah Gilani told viewers of Fox Business' "Varney & Co." on Christmas Eve that the red hot markets could be overheating.
Here's just how big that correction could be...
