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[From the Editor: As the Dow and Nasdaq try to regain their early October losses, our technology-focused investing service is outperforming both indexes. In fact, 16 stocks in this portfolio rose yesterday with average gains of 3.6%. If you haven't yet met the tech investing specialist behind these stock picks, take a minute to read this subscribers-only update from Michael A. Robinson. He's a 34-year Silicon Valley insider who delivers these market-crushing gains to investors in his Nova-X Report – which you can learn more about here.]
For the last couple of weeks I have been reminding tech investors not to let the market's volatility get them down.
In fact, last week I even appeared again on the popular FOX Business show "Varney & Co." with a very simple message: Following the market's recent retreat, stocks were oversold.
I drew this conclusion based on both fundamental and technical analysis of the market. Let me explain.
Five years into the recovery, the U.S. economy has actually gained steam. In the second quarter, GDP grew at 4.6%. We've now had average jobs gains of 225,000 a month this year, the longest such stretch since 1999.
Not only that, but jobless claims as a percentage of the workforce are the lowest since the government began keeping such records in the 1970s. And in September, housing starts were up a robust 6.3%.
Thus, we obviously have some strong fundamentals at this point in the bull market.
The technicals also indicated that a rebound for stocks was at hand. See, when the S&P 500 recently declined by more than 7%, the index fell below the 200-day moving average for the first time in nearly two years.
After it fell to that level back in November 2012, the S&P quickly recovered and went on to score gains of more than 37%, a figure that includes the recent sell-off.
That's why I'm so glad to write to you today and let you know that of the 17 stocks in the Nova-X portfolio, all but one had profits yesterday. Our average gains for the session stood at 3.6%.
By comparison, we simply crushed the broader market. We beat the S&P 500, which gained nearly 2% for the day, by 80%. We even beat the tech-centric Nasdaq Composite Index (up 2.4%) by 50%.
All in all, a great rally for Nova-X investors…
I believe the big gains we scored proves our strategy to turn the market's volatility to our advantage is working out as planned.
For anyone who is not part of the Nova-X Report, but wants to learn more, go here for the details and get started today.