Is "Bad News Actually Good News" Again?

Stocks traded flat again this morning as all three major indexes lingered near their record highs.

December 29, 2021 12:35PM The Strange 4 P.M. Dashboard STOP checking the markets during the day and... Do NOT place another trade until you see this strange "4 P.M. Dashboard". A small group of people are quietly placing this 1 little-known trade AFTER the market closes... Click here now for all the details... Is "Bad News Actually Good News" Again? Stocks traded flat again this morning as all three major indexes lingered near their record highs. We observed several days ago that this week’s reduced trading volume would limit how far the market could go. It’s now clear that bulls will need the major trading desks back at work before the next “melt-up” begins. Dow components beat both the S&P and tech-heavy Nasdaq Composite this morning, but overall, most stocks refused to budge. What’s continuing to climb, however, is the number of Covid infections. France just reported 208,000 new cases over the last 24 hours. If the US experienced a surge of that magnitude, it would represent about 1 million new infections. Thankfully, Covid is spreading slower in the US, where 4.1 million new Covid cases have been confirmed this month. Still, the US’s seven-day average sits at 231,888 infections and December has dwarfed November’s 2.54 million recorded cases with ease. And though that may be seen as a bearish development by traders, the truth is, we may be entering “bad news is good news” territory once more with several Fed rate hikes looming in 2022. “Perversely, bad news around Omicron might be good news for the markets because it gives the Fed the impetus to continue with these very loose monetary policies,” said Opimas LLC Chief Executive Officer Octavio Marenzi, echoing our own commentary from earlier in the week. (...continued below...) Let This Find Your Next Trade - FAST The hardest part of trading is analyzing all the charts to find your next trade. It can take hours... OR You can simply activate my unusual "trading engine" on your computer, tablet, or smartphone... ...and let it find your next trade in just a few seconds. PLUS, risk management is built-in to the trading rules, so you don't need to think too much. Go here to try it out... “Too much good news for the real economy might actually be quite bad for the markets.” It has to be the “right” kind of bad news, though, to keep the Fed from shifting more hawkish. Take rising inflation, for example. If inflation continues to spiral out of control, that would certainly be received by analysts as bad news. But the Fed wouldn’t see it as a reason to start increasing asset purchases again (QE). Instead, Fed Chairman Jerome Powell might even accelerate the ongoing taper further. The FOMC may shift its rate hike schedule forward, too. Let’s say the January Consumer Price Index (CPI) shows a 10.00%+ year-over-year increase. We might see an expected rate hike from the FOMC by March or April. Would the market be able to handle that kind of news? Probably not. At the moment, bulls seem to believe that when the moment comes, the Fed won’t actually raise rates. A dysfunctional supply chain, stalled labor recovery, and new set of Covid restrictions would help Powell rationalize delaying a rate hike. Another CPI spike, on the other hand, would only hasten the bull market’s eventual demise. Traders need to mentally prepare for what’s going to happen when the bear market finally arrives. Keep in mind that the majority of professional money managers haven’t actually seen a bear market during their careers. (...continued below...) ** URGENT ALERT ** This explosive trade set-up was just spotted - A MONTH EARLY. It's part of a highly unusual way a small group of traders have been exploiting earnings announcements. While many people gamble on which way a stock will move after earnings is announced... ...these people actually AVOID the day earnings is announced and instead target a sort of "earnings echo". Time is of the essence, though, because the next big wave of earnings will be announced in January... ...and you'll want to be prepared. Go here for the full story... Only the older folks, those who endured the bear markets that began in 2000 and 2008, have witnessed such horrors. Among them are professional investors who now occupy high-level positions on Wall Street. These types of people are responsible for larger scale, more-strategic moves. The lower-level portfolio managers – the ones that handle the majority of the actual buying and selling – are primarily traders that are younger and have only experienced a bull market in their lives. And when the current bull market ends, all hell could break loose because of it. We’re not there yet, of course. That’s why it’s important to follow price action instead of getting into the habit of predicting major market trends. It would make perfect sense for stocks to start falling in January. But what if they don’t? Investors who get out now could miss another very profitable month. Even if it doesn’t make sense for stocks to rally again with some potentially market-killing rate hikes coming down the pipe. WEIRD BITCOIN "CHEAT CODE" Most people buy Bitcoin the "regular" way. That's can be OK... but there's a better way. It's a sort of "cheat code" that lets a trader ride the ups and downs of the crypto markets. I don't think many people have ever heard about this "cheat code" yet... ...so there's still time to use it before it becomes overplayed. Go here for the direct replay link. You are receiving this email because you opted in at one of the Profits Run websites. 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