Let's Do An Experiment…

Try breathing in – only in – for a full minute.

Can’t do it? Of course you can’t. Our bodies aren’t meant to. We know this intuitively; our lungs operate in a perpetual cycle of inhales and exhales.

The market is no different. What I’m showing in the chart below is the periods when the market goes steadily higher without a pullback. Think of it as the market only breathing in.

I can spot this type of market activity by looking at the Stochastics indicator. When the market is in ‘cycle mode,’ the indicator oscillates back and forth between 0 and 100. Breath in… Breath out…

But when the market is trending higher, Stochastics readings stay in the upper range (i.e. 70 to 100). Breath in… Breath in… Breath in…

I’ve identified four such periods in the last two years, including the one we’re in right now. The last three periods had common characteristics. They each lasted an average of 50 trading days, and were followed by a meaningful price decline… Breath out…

The Dow has marched higher for 44 days now. We’re watching for the exhale.

Why Winners Keep Winning (And Losers Keep Losing)

If “buy-and-hold” and the notion that you can’t beat the market have left you short of your personal and retirement goals, then you’re going to want to hear the truth about passive and active investing.

Chances are, if you’re more than 25 years old, you think it’s impossible to “beat the market!”

But today, there is MORE than ample evidence that proves:

  • The stock market is NOT perfectly efficient
  • Passive investing can be MORE risky than active investing

You CAN beat the market… you just need to use the right strategy!

Get your own FREE copy of the latest report from Chief Investment Analysts, Adam O’Dell, “Why Winners Keep Winning (And Losers Keep Losing)”

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Categories: Economy

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.