Greetings Friends,
Last time we talked the market was in peril. Stocks were crashing lower and investors were getting nervous over the extended government shutdown. But sensing it was yet another opportunity to buy on a short-term dip, my recommendation was:
“I’m using dips as a chance to buy. If Washington announces a deal, the market should turn quickly and charge higher. That’s why I am buying into weakness.“—October 5
That turned out to be a great call.
Because just like we have seen so many times in the last few years, almost any weakness in the market is a chance to buy on a dip.
I’ve said it a thousand times and I’ll say it again: the Fed doesn’t want the market to go lower. And the #1 saying on the Street is “Don’t fight the Fed.” Fighting the Fed has has wiped out more than a few traders and investors.
So for the time being, there is no question the multi-year trend higher is well intact. Take a lok at the bullish trend in the S&P 500 that started from the low in March of 2009. Stocks may be a bit over extended after a great 2013, but the long-term trend is definitely still higher.
In fact, stocks are looking as strong as ever right now. We’ve seen some really bullish movement in stocks coming out of this recent dip.
Google ripped higher 14% in one day and busted above $1000. New all-time high. Apple surged to a new 12-month high above $525. In the meantime, analysts are raising price targets. All good things for Apple. Energy has been surging. Baker Hughes jumped 8% in one day on great Q3 results. ConocoPhillips is at a 52-week high.
In spite of all the fear right now, stocks are looking strong. Earnings are still great. Most valuations look normal if not low. Those are very bullish signals for stocks.
Looking forward, I’m looking for a strong finish to the year. November and December are usually good months for stocks. In fact, the next 6 months, from November to May are the seasonally strongest 6 months of the year for stocks. So if you’ve got cash it makes sense to be looking to buy.
If you’ve got any questions, send me an email: mike@vodickagroup.com
Shifting into our articles, I have some great pieces to share this week. Have you guys heard of sin stocks? Cigarettes, booze……and now, a high-end gentleman’s club. Take a look at Rick’s Cabaret. I see huge upside potential in this stock. The second link is a great stock to cash in on electric cars. And finally, I found my new favorite drone stock. The drone industry is booming, and this is a great way to cash in.
A Small Cap Sin Stock with 125% Upside
Forget Tesla, This is the Best Way to Profit from Electric Cars
Profit from the Age of Drones with this Secret Stock
Have a great week!