Editor's Note: We're wrapping our Money & Markets Daily Mike Carr takeover with a perfect piece to close out a volatile trading week. If you're wondering how to avoid potential risk while also banking consistent wins before the weekend hits, read on… |
The Key to Worry-Free Weekends |
Money & Markets Daily,
On April 13, millions of people around the world were glued to their screens.
Iran had launched an attack against Israel. It would be hours before impact. The world watched as it wondered about the initial attack and any potential counterattack.
Attacks like this can be the first stage in a war. The tragedy of conflict is always unimaginable. It’s almost always unprecedented as new weapons or tactics take the horror of the battle to new levels.
As investors, we understand that. Our first thoughts are always to the innocents trapped in misery. But our thoughts also drift to the impact of war on the markets.
Many Wall Street pros weren’t surprised by the timing of Iran’s attack. There’s an old saying that “wars start on weekends.”
History lends some support to this idea...
Wars Are a Weekend Trend
- World War I started on a Sunday, with the assassination of Archduke Franz Ferdinand.
- World War II began on a Friday when German forces invaded Poland.
- The U.S. entered the war after Pearl Harbor was attacked on a Sunday.
- The Korean War started on a Sunday.
- The action that escalated U.S. involvement in Vietnam, the Gulf of Tonkin incident, was on a Sunday.
- The first battles of the Yom Kippur War were on a Saturday.
- After 9/11, the U.S. response in Afghanistan began on a Sunday.
These are just some examples. We saw no tactical reason for many of these events to occur on weekends. Some were simply accidents of history.
But they still highlight a major uncertainty many investors overlook — how weekend news injects extra risk and volatility into markets.
 | Every week, between Wednesday and Friday, Mike Carr uses his proprietary algorithm to make a very specific trade…
A trade he never holds for longer than 48 hours…
While nailing a win rate of 95%.
Even better…
Making this specific trade … on these specific days… had the power to grow an account 199% over the last year.
Full details are at this link here. |
A Lot Can Happen in 2 Days
When markets are open, investors can instantly assess the situation. They can buy or sell based on the news, maintaining an orderly market.
However — if bad news unfolds over a weekend — we tend to see an overreaction at Monday’s open. The initial wave of selling is often followed by additional selling as traders adjust the risk profiles of their portfolios.
This adjustment process can continue for days — creating pullbacks and even bear markets.
Now, you might think that I’ve selected just a few examples of this to support my argument. But I have data that backs this pattern over a long period.
Over the past 10 years trading the SPDR S&P 500 ETF (NYSE: SPY), if you’d bought the Friday close and sold the Monday open, you’d have lost money. This was at a time when stocks were almost continuously in a bull market.
The S&P 500 index opened higher 54% of the time. But the average loss was 1.2X greater than the average win. This resulted in a significant loss over time.
The largest loss was more than 10% in March 2020, and we had five losses of more than 5%.
Over that same 10-year span, the biggest weekend gain was just 3.9%. This shows how fear grows sharply over the weekend while greed builds slowly.
This is an important lesson for short-term traders and really any investor looking for an edge. We want to minimize exposure to news risks over the weekend to increase our chances for success.
My new "Accelerated Income System" follows a special kind of “box” trade that avoids weekends entirely — and the results have been incredible.
My subscribers have already enjoyed a 95%-win rate with these trades over the past year.
These are low-risk trades we never hold for longer than three days, and the steady gains allow us to compound for a significant return over the next 12 months.
We just opened access to this strategy yesterday — and I explain how you can start using it to grow your account in my presentation right here.
If you want to have more worry-free weekends, I encourage you to watch now.
Michael Carr
Editor, Money & Markets Daily
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But our research shows his latest investment could be his most successful venture yet.
See how you can invest alongside him (with a starting stake of just $25).
But you’ll want to do it between now and May 5. |
Investors Need to Learn From Zimbabwe
Zimbabwe has struggled with hyperinflation for years. This has made the country's currency almost worthless as it boosted the notional value of stocks. To tackle the inflation problem, Zimbabwe frequently reset the value of its currency. These devaluations helped for a time, but then the Zimbabwean dollar always collapsed.
To break this cycle, the country issued a new gold-backed currency. The ZiG, short for Zimbabwe Gold, gained more than 2% against the U.S. dollar since its debut on April 5. At the same time, Zimbabwe’s new currency has wiped out a gain of more than 330% on the stock market this year. You can see that wipeout in the African 'Xchanges chart below.
This is a dramatic example of the impact currency has on stock prices.
Japan offers another example with its weak yen. The benchmark Nikkei 225 Index is up 12% since the start of the year. iShares MSCI Japan ETF (NYSE: EWJ) is up just 4.7% over that time due to the impact of a strong dollar.
Investors wanting exposure to top Japanese stocks without currency risks could consider the WisdomTree Japan Hedged Equity Fund (NYSE: DXJ), which is up around 20% year to date. When looking overseas, always consider the impact of currency.
— Mike Carr, Chief Market Technician, Money & Markets
Zimbabwe Stock Exchange (ZSE) Plummets After New Currency
(Click here to view larger image.)
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