Last week, investors got a pleasant surprise: two consecutive robust trading days to kick off the fourth fiscal quarter.
The Dow Jones Industrial Average soared more than 1,500 points in just two days, marking the strongest start to a quarter since 1938. And the S&P 500 had its best two-day stretch since 2020.
It was in stark contrast to the oversold conditions the market has been experiencing in recent weeks.
The stock sell-offs have been a clear signal that investors believe the economic environment will weaken dramatically, and soon.
Senior Analyst Jon Markman, well-known for his bullish outlook, says that reality may be in the cards. He told me, "The delta between where we are and where we're probably going is quite large, and that's pretty scary."
One reason investors are worried about a potentially severe slide is the movement in interest rates.
The Federal Reserve is expected to raise rates again at their meetings in November and December, and add another hike in February 2023, to reach a target range of 4.5%–4.75%.
Jon says the pace of the hikes is historic, an attempt by the Fed to "kill the economy," in order to drive down consumer demand and decrease inflation.
He believes while a sudden market crash is unlikely, you can expect further price plunges, and perhaps more consistently.
If there are rallies, like the ones that just happened, he says to take advantage of them:
I wouldn't be looking for a crash, per se, but you could see the market go down, or the Dow Jones go down, 200 points a day for two to three weeks in a row.
That's essentially been happening.
If you want to participate as a trader right now, sell the rallies. Every time the market is up 300–500 points in a day, sell it.
Jon is the editor of The Power Elite, Weiss Technology Portfolio and Crisis Profit Trader.
His trading service Crisis Profit Trader is designed to be a hedge against the uncertainty and volatility in the markets right now, trading short-term put and call options for sizable gains.
In today's four-minute video segment, Jon discusses why there's something for investors to be optimistic about this week.
This Thursday may be a good time to buy, based on decades of data:
I pay a lot of attention to seasonality in the markets and when stocks tend to go up or down at certain times of the year.
One of the things I focus on is 12-month forward expectations of individual stocks, and the market itself.
If you look at the entire year, you have 252 trading days, and if you look at the 12-month return of each one of those days over the past 50 years, you can see patterns.
One of the more important patterns is a low, and that tends to happen in the second week of October.
If the market goes down Oct. 13, even if it's difficult to do, just close your eyes and buy.
In this insightful video, Jon and I explore:
- When to sell the stocks that you buy on Oct. 13 if you don't want to wait a year.
- Three stocks that he would buy in any and all economic conditions.
- What he believes is the Fed's endgame in this economic cycle.
And more.
The information in this short segment couldn't be timelier. Just go to the video box above to watch it now.
Happy investing!
Jessica Borg
Financial News Anchor
Weiss Ratings
Watch Jessica's Recent Videos
 |
Insights From a Bitcoin Millionaire
We're still in a crypto bear market, but global adoption is growing and overall, the industry is proving it can withstand tough macroeconomic forces. In this segment, Jessica interviews Crypto Host and Analyst Max Wright, one of the world's first Bitcoin millionaires, about BTC's strength, deflationary power and the market within crypto that'll take charge in the next bull run.
| |
There are several reasons why short-term interest and long-term global demand are rising in copper. In this segment, Jessica interviews Senior Analyst Sean Brodrick about how to capitalize on copper's price action, the growing industries relying on the metal and investments that play to its strength.
| |
Despite inflation and growing fears of a recession, Americans are still spending 5% of their income on leisure and entertainment. In this segment, Jessica interviews Senior Analyst Tony Sagami about rising stocks across growing industries, and the next explosive phase of the booming gaming market.
| |
All-Weather Protection & Profits
Investments that thrive in both bull and bear markets are ones to target in this rapidly changing climate. In this segment, Jessica interviews Director of Research and Ratings Gavin Magor, editor of the new All-Weather Portfolio, about the 52,000 investments with Weiss ratings, data all investors should utilize and how to maximize profits with minimal risk.
