If it rains, you’ll get wet. It doesn’t matter whether the radar calls for sunny skies or not…
It happens all the time. The weather forecast will show no clouds, only for a thunderstorm to barrel through. Trying to rationalize why it should be sunny doesn’t change a thing.
The key is to always be prepared – having an umbrella on hand for when the rains do arrive.
Well, the market works in a similar fashion…
You want to be ready for when any market “storm” that could be on the horizon. And while we might not know when the rains will fall, we’ll be prepared for when they do.
And after the major indices took a dive last week, it appears that storm could be getting close.
So today, I’ll go over our market “umbrella.” It’s our game plan towards profits – no matter where the market moves next…
Staying One Step Ahead
It’s no secret that the market is confusing a lot of people lately.
The world has been going to hell in a handbasket during this coronavirus pandemic crisis. And for a while, despite the negative news of COVID-19 cases still rising and record unemployment, stocks kept marching higher.
And then last week, the rally abruptly halted and the market tumbled.
It doesn’t seem to make a lot of sense. But as I’ve written before, the “why” behind the market’s moves doesn’t matter. It’s just like the weather…
Rather than focusing on rationalizing the “whys,” we simply need to look at the big picture… Where are things headed next? And how can we stay prepared?
That’s where my “unbeatable” stock-picking system comes in. It takes our emotions out of play by focusing on the data.
Now, I used my experience from nearly two decades at prestigious Wall Street firms – regularly trading more than $1 billion worth of stock for major clients – to make sure it’s highly accurate, comprehensive, and effective.
My system scans nearly 5,500 stocks every day, using algorithms to rank each one for strength. But it doesn’t just look at individual stocks…
It also tracks big-money buying and selling in the broad market through its Big-Money Index (BMI).
As you know, when the BMI dips to 25% or lower, sellers have taken the reins, leading the markets into oversold territory. And when it hits 80% or more, it means buyers are in control and markets are overbought.
After staying overbought for a record period, the market has finally dipped under 80%. So sellers are starting to take control.
But if this pullback worsens, we’ll be ready for it…
A Win-Win Game Plan
Trying to constantly justify the market’s moves is futile. Like the weather, it doesn’t have to make sense.
But our game plan is the perfect umbrella to shield us from the coming storm. If the market does tumble further, we’ll take profits, raise cash, and look for winners to add to our portfolio.
If this pullback ends up being a short-term dip, we’ll wait it out and ride our current positions higher once the market corrects.
It’s a win-win.
The bottom line is, we just need to be ready to adapt as the environment changes. The global pandemic has certainly shown us that – now, more than ever.
We’ve already had to adjust to social distancing measures and life in lockdown (like working and learning from home).
But that’s okay. We’ll stay calm and rational… and get through this together.
Patience and process!
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Jason Bodner
Editor, Palm Beach Insider
P.S. As I mentioned, my system follows the big money’s lead in all market conditions. And it’ll continue to take the emotions out of investing – and identify huge winners that lead you to profits.
It’s already found five triple-digit winners for my Palm Beach Trader readers. And now, it’s telling us which stocks are poised to soar next. You’ll want to add these to your shopping list soon.
I’ve put together a special presentation to show you all the details of how it works. So be sure to learn how you can access my system’s data right here.