Why This “3-Legged Stool” Is Predicting Tough Days Ahead
How long can it continue?
For investors, it’s been a one-way ticket to higher prices throughout 2017, and it’s happened with record low volatility.
Some are even calling the S&P 500 “the new money market” because it never seems to go down.
Even when it has taken a tumble, it hasn’t stayed down for long.
Although such talk is tongue-in-cheek, if you’re tempted to throw caution to the wind and park your cash in the S&P 500 until some better individual stock investment comes along…
I’m telling you right now, don’t do it.
You see, we can’t be certain of exactly when this nirvana will end.
However, I am certain of two things (other than death and taxes, of course).
First, there will be another bear market, and stock volatility as measured by the VIX will revert back up to its long-term average near 18.
Second, that my “three-legged stool” analytical approach is one of the best tools there is for predicting the market’s next short-term move.
It includes…
- Reading what two of the market’s most valuable technical indicators are telling us today
- Knowing the predictable seasonal patterns impacting prices right now, and
- Understanding which direction Wall-Street’s top traders are leaning, and how the market could inflict “max-pain” on their pocketbooks
I rely on these tools each week inside my Options for Income and Velocity Trader trading services, and today I’m giving you a peek “under the hood”.
In the video below, I walk you through each leg of this “stool” and show you why the S&P 500 is NOT ready to break out to new highs. Instead, it’s likely to stagnate or even drop between now and October 20th.