Keith and Shah were on FOX Business' "Varney & Co." Wednesday to give their take on what's happening in the markets. At the exact time they were on, Dow 21K happened.
Legendary investor Warren Buffett released his annual letter to Berkshire Hathaway shareholders over the weekend, sending many "experts" and investors into a frenzy as they try to mimic Buffett's investing style and, therefore, his profits.
But here's the thing...
Simply mirroring what he does will not get you where you want to go. Chances are, it won't produce the returns he gets, either.
If there's one thing new investors aren't short on, it's advice. There are so many "investing adages," "Wall Street adages," and other golden nuggets meant to guide investors, it's overwhelming.
There's some truth to all of them, and they all have their place for investors who might find themselves facing a difficult situation.
But here's the thing - none of them really help investors make the most important investing call: the decision to get started. It turns out investors often find that figuring out the market isn't nearly as important as being in the market in the first place.
Fortunately, whether you're an absolute, rank beginner or someone who's been sitting this bull market out on the sidelines, I've got some help for you.
It doesn't matter what you trade, it doesn't matter how you trade it, but if you use the most common and successful technical tool on the market, you'll enjoy great success - and great returns.
This also happens to be one of the oldest technical tools there is, and one of the most powerful. It's not to be underestimated.
And today, I'm going to show you how to use it like a seasoned pro.
On Feb. 18, a MarketWatch reporter made the case that earnings growth alone during Trump's first term had every chance to propel the Dow Jones Industrial Average to 30,000 and beyond - should the president's promised tax and regulatory reforms make it through.
The analysis created quite a stir on the cable news circuit. Stuart Varney, host of FOX Business' "Varney & Co.," asked our Capital Wave Strategist Shah Gilani to explain what he thought of the controversial MarketWatch call.
Of course, Shah being Shah, he did a lot better than that. He made his own surprising case for the Dow topping 30,000.
Even better, he told investors who might (understandably) be nervous about getting in at these highs the very best way to confidently and safely jump right in and ride the long, profitable leg up ahead of us...
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Sticking to your guns, acting on your convictions, and keeping on top of the market's narrative are all valuable things, until traders take them too far or in distinctly unprofitable directions.
So D.R. is letting you in on a dirty little secret to manage your trading profitably...
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I just read an article from a financial publisher who was hoping to capitalize on the popularity of today's Super Bowl.
The article was based on an indicator, first proposed back in the 1970s by a New York Times sportswriter, the late Leonard Koppett.
Strange as it may seem, the article suggested that when a team from the original AFL won, the market dropped, and when a team from the original NFL won, the market rose.
Now, most reasonable people understand that this is just a fun case of correlation without causation.
But not everyone is reasonable.
This writer, who's going to remain nameless here while he gets a thorough debunking, spent more than 700 words explaining "why the Super Bowl Indicator actually works."
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In the market, following a narrative means keeping on top of the main driver for the markets at any one time. And it frequently adds up to more cold, hard, cash money.
Strategists at Bank of America Corp. (NYSE: BAC) are calling it "The Icarus Trade," a reference to the story of the boy who ignored warnings and flew too close to the sun - and plunged to his death when his feather-and-wax wings melted from the heat.
The Bank of America prognosticators are using this tale from Greek mythology for the post-inauguration prediction that they're making: a parabolic "melt-up" that carries global stock prices up another 10% in a continuation of the "Trump Reflation Rally" - followed by a total market "meltdown" later this year.
Around a week later and the S&P 500 is up more than 1.3%, while the Dow has zoomed well past 20,000 to sit 1.6% higher than it opened on Inauguration Day.
So it seems like the markets are headed toward fulfilling Bank of America's dramatic "Icarus Trade" prediction...
Well, we think it's dead wrong, thanks to a bold call by Stealth Profits Trader Editor D.R. Barton, Jr. And if you caught my interview with him this past Sunday, you'll know exactly why.
You see, his prediction is almost the exact opposite of what the folks at BoA are predicting.
Although it's no less dramatic, D.R. believes there's lots more upside in store than what the doomsayers are predicting.
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Stocks enjoyed a nice, broad 6% run up between election night and Trump's inauguration on Jan. 20. That's all over with.
The markets are now largely sideways, trading in a box and headed in no direction in particular, with a little light profit-taking.
But... shares are practically the only thing not moving right now; Trump is setting a furious pace.
On his first full Monday in office, we saw him taking dead aim at his stated growth, trade, and regulatory goals: He floated the idea of slashing regulations by 75% on the same day he put the North American Free Trade Agreement and Trans-Pacific Partnership front and center. And there are reports "Mr. Brexit" and United Kingdom Prime Minister Theresa May might work toward a sweeping new trade and immigration deal with the United Kingdom when they meet later this week.
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The market is trapped in a tight sideways box and a true "wait and see" attitude toward the Trump administration.
We've just been through a very healthy post-election rally that pushed the S&P 500 up a bit more than 6%, as of this week.
The history buffs out there, like me, will note the S&P 500's "Trump Bump" was a little less than twice as powerful as the 3.7% shot in the arm Franklin D. Roosevelt's election dealt the index, but a bit less than half as potent as the ripping 13.29% rocket ride Herbert Hoover's victory "catalyzed" on the S&P 500 between his election in 1928 and his swearing-in.
But... we all know how that rally ultimately played out for investors of Hoover's day.
At his inauguration on March 4, 1929, "the Great Engineer," as Hoover was called, could rightly boast of huge market gains. And of course barely eight months later, by Oct. 29, the U.S. stock market was a smoking ruin, closing the door forever on the Roaring 20s and lifting the curtain on the Great Depression.
Now, I'm not saying we're in for a repeat performance. Not at all. But I am conscious of the history, and as a dyed-in-the-wool contrarian, I'm inclined to prepare for the worst, especially if the good times are rolling.
Besides, I agree 100% with our Chief Investment Strategist, Keith Fitz-Gerald, when he says that, "Chance favors the prepared mind."
So even if it's the farthest thing from your mind, there's no time like right now to take in a few of what we here at Money Map Press like to call "Downturn Lessons." They'll not only save you a lot of heartache when the weather changes, but you'll be in a much better position to make money at a time when nearly everyone else is losing it.
So let me share them with you...
The greatest stock picker is delivering his latest, most profitable pick - in fact, it's his favorite right now for 2017 ...
Spotting and taking action based on trading patterns is the best proven way to beat the markets.
And there are two technical patterns that traders use in particular that you can bet your life savings on.
It's pretty easy to do, too. Here's everything you need to know...
The holiday season has a different vibe, doesn't it? The pace around us quickens, expectations rise, and despite the commercialization, at least some of the joy and optimism of the season seeps in around the edges.
Personally, this weekend, I'll be expecting my kids home from college and med school, and family members are already calling to arrange visits. They're even calling for some seasonally appropriate snow this weekend at my home in Delaware.
The markets themselves usually manage their own form of "joy" at this time of year. The optimism of the populace seems to bleed over into stock prices.
That's no idle speculation, either - history shows that the S&P 500 has provided positive returns in a whopping 49 of the past 65 Decembers. That's a win rate just north of 75%.
That's a strong result, but I've got a play in mind that's even more impressive...
There's a question I'm getting asked a lot lately:
"Is there a way to trade Trump's tweets?"
Definitely - it's just not what most investors would expect.
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