| | Why the Market Hasn't Tanked Yet | There are problems... and then there are dilemmas. Right now, the market is facing a dilemma. By rights, the whole thing should roll over and tank, but it can't do that. | Think about it: High-profile companies continue to cut their sales, earnings, and margins outlook. Intel (INTC), Nvidia (NVDA), Ulta (ULTA), Nike (NKE), Lululemon (LULU), AMD (AMD) - the list of cuts, downgrades, and shortfalls goes on and on. | And yet, instead of sinking the S&P 500 index continues to tread water | Why? Because the market is anticipating the Fed to institute a number of interest rate cuts which will soften the landing | So, the portfolio managers are rotating away from cyclical/growth stocks into defensive, low-beta, value stocks to mitigate the risk. Thus for every tech stock, like Nvidia (NVDA) or Supermicro (SMCI) getting whupped, money is flowing into Coke (KO), Procter & Gamble (PG), JP Morgan Chase (JPM) or Netflix (NFLX) which offers steady cash-flow certainty | Even those the latter stocks are overpriced, money managers don't give a damn because they don't do research anymore. They are lazy and just use price charts, trends and rotations to make decisions | In the end, that's a recipe for disaster. The algos will flip to "Sell." It'll end in tears, but as long as it works in the moment, they'll adopt a "buy this, not that" strategy. | When it eventually fails - and it will fail - here is what they'll say: "Eh, it's not my money. How can I go about raising new assets under management (AUM) to restore my performance and reputation?" | Most professionals have no game plan for when the algos flip. | It hasn't happened yet, but when it does all hell will break loose... | Profit Windows Stay Open in Any Market
It doesn't matter if the algos are buying or selling - profit windows open up all the time. And if you raid them correctly, you can walk away with anywhere from 26% to 57% in profit potential. This has worked 19 of 22 times on all kinds of stocks. Watch… |
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