I recently ran through a little exercise with my premium Income Trader readers, looking at the potential upside in the stock market. And I’d like to share it with you… I’m starting with the simple assumption that the bull market will continue. Now, there are dozens of reasons for why the bull market shouldn’t continue. Yet, prices keep rising. Old traders often say, “The trend is your friend,” and that has certainly been the case this year. The trend has been relentlessly up, despite weakening economic data, a potential trade war, and many other problems. Traders have largely… Read More

I recently ran through a little exercise with my premium Income Trader readers, looking at the potential upside in the stock market. And I’d like to share it with you… I’m starting with the simple assumption that the bull market will continue. Now, there are dozens of reasons for why the bull market shouldn’t continue. Yet, prices keep rising. Old traders often say, “The trend is your friend,” and that has certainly been the case this year. The trend has been relentlessly up, despite weakening economic data, a potential trade war, and many other problems. Traders have largely ignored these potential problems, and the S&P 500 gained more than 17% since the start of the year. The “up” move has been interrupted by several declines, with the most serious one (in May) pushing prices down by almost 8%. To see how much higher prices could go, I started by looking at fundamentals. The Fundamental Picture Over the long run, the average price-to-earnings (P/E) ratio of the stock market has been about 17. The next chart looks at price targets for the S&P 500 based on estimates from Standard & Poor’s. To develop earnings estimates… Read More

On Saturday, President Trump met with China’s President Xi.  They reached an agreement that seems like it should be important.  But the top story on CNBC wasn’t about that meeting.  There was news about the meeting further down the page. In terms of page views, it was the fourth-ranked story on Saturday afternoon.  Instead, it was this… —Recommended Link— Coca-Cola’s Lesson for Investors​ Talk about a fantastic long-term investment. Coke went public at $40 a share. Now one of those original shares is worth $16.1 million. Now. I can’t tell you what the next Coca-Cola is going to be. Read More

On Saturday, President Trump met with China’s President Xi.  They reached an agreement that seems like it should be important.  But the top story on CNBC wasn’t about that meeting.  There was news about the meeting further down the page. In terms of page views, it was the fourth-ranked story on Saturday afternoon.  Instead, it was this… —Recommended Link— Coca-Cola’s Lesson for Investors​ Talk about a fantastic long-term investment. Coke went public at $40 a share. Now one of those original shares is worth $16.1 million. Now. I can’t tell you what the next Coca-Cola is going to be. But I CAN tell you where you’ll find it. It’s in this small corner of Wall Street populated by companies that are absolutely ruthless about doing one specific thing. This is hard to believe. But it’s all documented here.​ (Don’t worry, I won’t be discussing the Avengers movie, so you don’t have to worry about potential spoilers.)  The fact that the trade war is less important to CNBC readers than the Avengers movie shows me that the trade war has become routine.  The specifics of the meeting certainly seemed routine. Both sides agreed not to levy any new tariffs and, according… Read More

We definitely experienced volatility last week. I had spotted a signal to expect volatility, and we met that target in just a week.  The S&P 500 gained more than 2% for the week. That’s a significant move, but looking ahead, it’s time to consider what will create the next big price trend in the stock market.  The weekly chart below shows why we will see a significant trend. This is the fourth time since January 2018 that the S&P 500 has challenged the 2,900 level.  A significant trend followed the previous three times we reached this level. In fact, prices… Read More

We definitely experienced volatility last week. I had spotted a signal to expect volatility, and we met that target in just a week.  The S&P 500 gained more than 2% for the week. That’s a significant move, but looking ahead, it’s time to consider what will create the next big price trend in the stock market.  The weekly chart below shows why we will see a significant trend. This is the fourth time since January 2018 that the S&P 500 has challenged the 2,900 level.  A significant trend followed the previous three times we reached this level. In fact, prices pulled back quickly after each of the previous attempts to break through 2,900. That could be important information when considering what could happen next.  When looking at a chart, it’s important to remember that someone bought and sold at each point of the chart. So, some investors bought at the highs in January 2018 and saw the stock market sell off almost immediately.  Let me explain why that’s important to remember.  Another Lesson The Army Taught Me About Trading As some of you may know, I served in the Army. During my time in the Middle East, I noticed… Read More

Last week’s market action was relatively dull. And by dull, I mean there wasn’t much price volatility.  Now, just because the market was “dull” doesn’t mean it wasn’t also interesting. Dull markets actually provide us with important information about what’s likely to happen next…  —Recommended Link— The most underrated wealth-building maneuver in history. Wall Street pretty much ignores it… but more than 150 years of data prove that doing this beats every other investment approach hands down. By a LOT. In fact, using this little twist turned a $122,878 payday into $1,098,012. ​Check it out here and see what… Read More

Last week’s market action was relatively dull. And by dull, I mean there wasn’t much price volatility.  Now, just because the market was “dull” doesn’t mean it wasn’t also interesting. Dull markets actually provide us with important information about what’s likely to happen next…  —Recommended Link— The most underrated wealth-building maneuver in history. Wall Street pretty much ignores it… but more than 150 years of data prove that doing this beats every other investment approach hands down. By a LOT. In fact, using this little twist turned a $122,878 payday into $1,098,012. ​Check it out here and see what I mean. The dullness resulted from the fact that the S&P 500 was almost unchanged after Tuesday. I’ve created a chart showing the last two times we saw a market that was this dull. The blue rectangles highlight the “dull” periods.  The bars at the bottom show the true range of each day’s market action. The range is the difference between the high and the low. This indicator misses the market action on days when the price gaps up or down at the open. (Gaps are opening prices significantly above or below the previous day’s close.) The true range corrects… Read More

Recently, I realized almost everyone I talk to expects tomorrow to look a lot like today.  As an investor, that’s a sign I like to see.  People generally seem to believe their jobs are safe. They’re planning for major purchases because they assume prices will hold relatively steady. In other words, consumer confidence is high and steady. This anecdotal evidence is also confirmed in the economic data I review.  —Recommended Link— 4 Ground-Breaking Predictions That Could Add Triple-Digit Gains To Your Portfolio I was SHOCKED when I read the report… If these numbers are right, then these 4 stocks… Read More

Recently, I realized almost everyone I talk to expects tomorrow to look a lot like today.  As an investor, that’s a sign I like to see.  People generally seem to believe their jobs are safe. They’re planning for major purchases because they assume prices will hold relatively steady. In other words, consumer confidence is high and steady. This anecdotal evidence is also confirmed in the economic data I review.  —Recommended Link— 4 Ground-Breaking Predictions That Could Add Triple-Digit Gains To Your Portfolio I was SHOCKED when I read the report… If these numbers are right, then these 4 stocks could see triple-digit gains in the next few months alone — one of them is even primed to shell out 1,000% gains the second its new product is released. But no one is talking about them… yet. ​ Discover the 4 stock predictions that could change the way you invest for life. Consumer and investor expectations are important to investors. It might be easiest to see in the stock market. If investors expect stock prices to go up, they buy and hold stocks. When they expect a significant decline, they sell stocks and hold cash. These actions explain long-term bull… Read More

Babies cry sometimes.  Now, I know all of you already know that. As a parent to young boys, I certainly know it.  But when babies cry, there’s something we often don’t know: why.  When a baby cries, parents and caregivers scramble to find what’s wrong. Crying could mean the baby is hungry, or the baby needs to be changed, or it could mean almost anything. Crying just means that attention is needed, and the truth is that we might never know the real cause.  For now, the stock market is like a crying baby. It needs attention, but we don’t… Read More

Babies cry sometimes.  Now, I know all of you already know that. As a parent to young boys, I certainly know it.  But when babies cry, there’s something we often don’t know: why.  When a baby cries, parents and caregivers scramble to find what’s wrong. Crying could mean the baby is hungry, or the baby needs to be changed, or it could mean almost anything. Crying just means that attention is needed, and the truth is that we might never know the real cause.  For now, the stock market is like a crying baby. It needs attention, but we don’t really know why the baby is crying.  A week ago, the market was bearish. The S&P 500 Index was below its 200-day moving average (MA). News was alarming, with the threat of tariffs hanging over the market. Yet traders ignored all of that and the stock market climbed higher, closing up for the last four days of the week.  But we still don’t know why the market is crying. All we know for now is that the market needs attention. Just like with the baby, we need to try to understand what’s needed.  The simplest approach might be to wait… Read More

When it comes to streaming to the TV, the first name investors may think of is probably Netflix (Nasdaq: NFLX), probably followed by Amazon (Nasdaq: AMZN) or Hulu. But the stock I recently recommended to my Maximum Profit readers is the company that first brought those streaming services to your television — and is still innovating today.  —Recommended Link— Investing Legend Reveals Wall Street’s Secret Cash Cow Discover how you can use this hack to legally skyrocket your portfolio and generate $37,000 or more in additional income every year with no added risk. ​ Click here to see… Read More

When it comes to streaming to the TV, the first name investors may think of is probably Netflix (Nasdaq: NFLX), probably followed by Amazon (Nasdaq: AMZN) or Hulu. But the stock I recently recommended to my Maximum Profit readers is the company that first brought those streaming services to your television — and is still innovating today.  —Recommended Link— Investing Legend Reveals Wall Street’s Secret Cash Cow Discover how you can use this hack to legally skyrocket your portfolio and generate $37,000 or more in additional income every year with no added risk. ​ Click here to see how much this “cash cow” could make you now! In that respect, Roku (Nasdaq: ROKU) is a pioneer. Founded in 2002, the company was among the first to kick off the “cord cutting” revolution with its small set-top boxes that could turn virtually any television into an Internet streaming machine. These set-top boxes eventually evolved into the Roku Streaming Sticks, a simple yet powerful thumb-drive you could plug into your television and gain access to Netflix, Hulu, Amazon TV and any other streaming services.  Both users and streaming content providers like Netflix loved the Roku technology. In the early days,… Read More

Last week, the Dow Jones Industrial Average finished lower for the fifth week in a row.  That sounds important — and it is — but I will get to that in a moment. First, I want to step back and take a long-term view.  —Recommended Link— SECRET: Add $8,760 Extra to Any Retirement Account Finally revealed! This “long lost” secret turns a quick 3-minute phone call into the opportunity to collect $8,760 checks. Every payment is backed by the full authority of the U.S. Government… and over $1.75 billion will be delivered to income-seeking Americans. Read More

Last week, the Dow Jones Industrial Average finished lower for the fifth week in a row.  That sounds important — and it is — but I will get to that in a moment. First, I want to step back and take a long-term view.  —Recommended Link— SECRET: Add $8,760 Extra to Any Retirement Account Finally revealed! This “long lost” secret turns a quick 3-minute phone call into the opportunity to collect $8,760 checks. Every payment is backed by the full authority of the U.S. Government… and over $1.75 billion will be delivered to income-seeking Americans. But your action is required TODAY while the enrollment window is open. You must click here right now to get started. Here’s a monthly chart of the Dow Jones Industrial Average that goes back over the past 15 years. As you can see, there was a clear multi-year uptrend in the Dow that started back in 2009.  But since January 2018, that uptrend has stalled.  Technical analysts would say prices have been in a consolidation since then. I highlighted the consolidation pattern with a blue rectangle.  Charles Dow And The Business Cycle Writing in the late… Read More

I’ve been thinking a lot about October 1987 recently.  I’m sure many of you remember that month. But for those of you might be a little too young (or maybe the memory just isn’t what it used to be), that was the month where we saw a one-day decline in the stock market of more than 22%. That day would later become known as Black Monday. At the risk of bringing up a painful memory that’s seared into mind of many investors, let’s take a look at what happened then — because I think it can be instructive when thinking… Read More

I’ve been thinking a lot about October 1987 recently.  I’m sure many of you remember that month. But for those of you might be a little too young (or maybe the memory just isn’t what it used to be), that was the month where we saw a one-day decline in the stock market of more than 22%. That day would later become known as Black Monday. At the risk of bringing up a painful memory that’s seared into mind of many investors, let’s take a look at what happened then — because I think it can be instructive when thinking about where we’re at in the market today. —Recommended Link— Collect Regular Government-Backed Marijuana Payouts Of $6,751 Or More There’s a tiny Maryland company with a revolutionary new marijuana profit-sharing plan. And it’s consistently sending out checks of $6,751. Or more. The payouts are 100% backed by a U.S. Federal Law. And there’s no limit to how much you can collect. Get the full story here now.. Let’s start with this chart…  From a technical perspective, the chart shows that prices peaked in August 1987 and broke support near 2,520 in… Read More

Last week, traders seemed focused on two important news stories — the potential trade war with China and Uber’s disappointing IPO. But the stories weren’t all that important to the broader market. However, the more I consider the news, the more convinced I am that there could be an explosive rally in the stock market. Let me explain… The (Psycological) Trade War First, let’s look at the trade war with China. This seemed to be the primary reason the S&P 500 Index dropped as much as 4.4% below its recent high. ​ Last week’s decline ended… Read More

Last week, traders seemed focused on two important news stories — the potential trade war with China and Uber’s disappointing IPO. But the stories weren’t all that important to the broader market. However, the more I consider the news, the more convinced I am that there could be an explosive rally in the stock market. Let me explain… The (Psycological) Trade War First, let’s look at the trade war with China. This seemed to be the primary reason the S&P 500 Index dropped as much as 4.4% below its recent high. ​ Last week’s decline ended when news broke that talks between the United States and China were productive. The news consisted of a single tweet from Treasury Secretary Steve Mnuchin: “Ambassador Lighthizer and I just concluded productive meetings with China’s Vice Premier Liu He. We will continue our talks in Washington, D.C. next week.” That sparked a 2% rally in the S&P 500. #-ad_banner-#Now, one of the interesting aspects of this story is that many economists believe the proposed tariffs will not have a significant impact on the U.S. economy. There will be higher prices on some items since the costs are likely to… Read More