A Great Tool for Catching Major Market Moves

How I Caught the Great Rotation Out of Tech Into Lagging Sectors June 08, 2020 UNSUBSCRIBE | ARCHIVES AN UPDATE FROM FORMER HEDGE FUND MANAGER AND BEST SELLING AUTHOR JAMES ALTUCHER: While the coronavirus crisis in the world economy is a scary tragedy… It’s allowed me to stay home and focus on finding new opportunities… Like the one I accidentally discovered a while back. Click this link to learn more about what I’ve done to protect my money and even profit in choppy markets. And hurry. This update will be pulled from the web Wednesday at 9:30am. A Great Tool for Catching Major Market Moves Dear Money & Crisis Reader, On Friday, I noted that capital was beginning to rotate into new sectors in the market. If you missed that article, rotation occurs when capital begins to move en masse from one sector to another. Typically, this involves money shifting from a sector that has been leading to one that has been lagging.  In our recent market climate, this means money shifting out of tech stocks and semiconductors and into things like cruise lines, theme parks, financials, and the like. The thing about rotation is that it is difficult to see on a standard chart. As a result, many individual investors miss out on these shifts… which means missing out on massive opportunities. Take a look at the below chart showing the FANG companies (Facebook, Apple, Amazon, and Google as depicted by the red line) vs. JPMorgan (JPM).  It is obvious that big tech is where you want to be. Look at the massive difference in performance over the last two months! However, this chart is deceiving.  It compares two different sectors with two completely different share price values. As a result, you’re not really measuring performance cleanly because there are two completely different Y–axes. Look what happens when you change this chart from showing prices to showing percentage performance gains, starting with March 23, 2020 (the date the markets bottomed).  Here again, FANG stocks are in red, JPM is in black. Suddenly, the outperformance isn’t that dramatic. In fact, it’s clear that JPM has gained DRAMATICALLY more since mid–May. While the FANG stocks have been moving in a gradual uptrend, JPM has suddenly EXPLODED upwards. Legendary Stockpicker Issues Urgent “All-In” Buy Alert The man you’re about to meet is one of the greatest stockpickers alive today… his previous stock recommendations have gone up 325%, 404%, 660%, even a rare 1,185%. And now, he’s just unveiled his #1 investment for 2020… he believes the gains this time around could be far bigger than any other recommendation he’s issued before. You need to hurry though. As he explains here, an urgent catalyst he expects on June 22 could send this tiny stock beginning to soar 1,000%or higher. Click here for the urgent details. Learning to Outperform the Market Finally, there’s another trick I use to catch major rotations, called “ratio work.”  Ratio work consists of comparing the performance of two asset classes by turning them into a ratio. Let me give you an example.  Below is a chart of JPM compared to the FANG stocks. When JPM outperforms FANG stocks, this chart rallies… and when FANG stocks outperform JPM, this chart falls.  Looking at this chart, it is clear that FANG stocks outperformed JPM from late 2019 until May 2020 (the chart was in a clear downtrend). Then, this suddenly reversed in mid–May, with JPM DRAMATICALLY outperforming FANG stocks. Using this kind of ratio work, you catch major rotations when they start.  I did precisely this in late May, alerting subscribers of my Strategic Impact newsletter that we were about to see several investments explode higher based on the economy reopening. One of them is already up 28%. The other is now beginning to catch a major bid as well. To learn more about investment ideas like these and secure your opportunity to see how to profit… click here. Best Regards, Graham Summers Editor, Money & Crisis TRUMP’S “SECRET PLAN” TO GET REELECTED IN 2020 —THIS COULD SEND ONE PARTICULAR STOCK SOARING His plan could TURBOCHARGE the U.S. economy… Put him in POLE POSITION to win a second term in office… And research shows it could set one particular “Trump stock” SOARING, pocketing you triple-digit gains in the process. Hit this link to find out how to get in on the action TODAY. To end your Money & Crisis e-mail subscription and associated external offers sent from Money & Crisis, click here to unsubscribe. If you are having trouble receiving your Money & Crisis subscription, you can ensure its arrival in your mailbox by whitelisting Money & Crisis. Money & Crisis is committed to protecting and respecting your privacy. Please read our Privacy Statement. 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