Alert! Vlad’s Buy Signal for October Snap Back Rally

RoboStreet – October 3, 2019 

Phenomenal Year-End Set Up or Falling Knife?

True to form, the month of October is living up to its reputation of being the most volatile time of the year for the stock market. It’s one thing to be investing within a headline-driven market, and another thing to know that key words and numbers set off buy and sell programs that take the major averages in both directions in an extreme manner. 

In today’s world, it’s very easy for the market to get overbought and oversold in a matter of days instead of weeks. In the opening half-hour of trading this past Tuesday, the S&P 500 was trading within 5 points of 3,000 and less than 30 points from an all-time high. After the much weaker-than-expected ISM Index report was released at 10:00 am EST (47.8 versus 50.2 estimates), the nascent rally not only fizzled, heavy selling ensued that carried over into Thursday’s session that shaved 3.6% off the S&P in just two days. 

The rapid give back of market gains in just the past 48 hours is a direct shout out by investors to President Trump and President Xi to strike a deal. My take on this situation, which is what the market cares most about at this moment in time, is that both sides can ill afford to not get something concrete done. Economic data is not on the side of playing the waiting game for the U.S. as was widely thought. And a rising U.S. dollar is only going to show up as going forward headwind when companies report Q3 numbers. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

If both sides of the U.S.-China trade teams walk away from the next round of trade talks without agreed-upon terms and conditions, the S&P will likely crash through the August low of 2,825 like a hot knife through butter. Trump knows this and won’t let it happen or he faces the backlash of all those 401K investors that are voting for him because of the fact that “it’s still the economy stupid” the gets people elected and re-elected. 

I see three or four possible near-term catalysts for the market, that if played out, will set the tone for a very bullish move to new all-time highs for the market indexes. First, I think a trade deal will materialize against the rising pressures to avert a further global slowdown that finally impacts the U.S. economy. To date, the domestic economy has been fairly immune to global downside pressures, but a rising dollar and contracting demand from export markets are now showing up in the data. 

Second, given the downside surprise of recent economic data and the Fed’s aggressive actions in the Repo market to stimulate liquidity and bank lending, there is increasing sentiment the Fed will cut the Fed Funds Rate by a quarter-point to 1.50% at the end of the month. The closely-monitored Fed Watch Tool has seen the probability of a Fed rate cut at the upcoming FOMC meeting jumping from 39% to over 75% in just three days. So, for all intents and purposes, the Fed is on track to accommodate the bond market and support the equity markets.

Source: www.cmegroup.com

Third, is the unfolding of third-quarter earnings season, that might well surprise. According to FactSet, Q3 2019 (with 14 of the companies in the S&P 500 reporting actual results), 12 S&P 500 companies have reported a positive EPS surprise and 6 S&P 500 companies have reported a positive revenue surprise. However, heading into the end of the third quarter, 113 S&P 500 companies have issued EPS guidance for the quarter. Of these 113 companies, 82 have issued negative EPS guidance and 31 companies have issued positive EPS guidance. 

Lastly is the situation in the Eurozone and the fluid Brexit issue that has an October 31 deadline attached to it. There is tremendous pressure to advance a deal that appeases both the European Union and the U.K., but much has to be done in a very short period of time to prevent a hard exit from the EU that will result in major disruption of goods moving across borders, businesses relocating and all manner of new regulations being put into place. A hard Brexit will be quite negative, but a late hour resolution would be met with positive sentiment by capital markets. 

Against this investing backdrop of intense flux, our RoboInvestor Portfolio of 13 holdings includes a hedge on the CBOE Volatility Index (VIX) and has been trading well against the market headwinds as most holdings are exhibiting good relative strength. My AI-driven platform identifies the best stocks and ETFs to own using proprietary indicators I’ve developed over the years that constantly learning 24/7 how to be smarter and more precise. 

AI is a powerful set of tools that can and do propel one’s portfolio performance. My AI tools are producing winning trades 87.91% of the time. Considering just how more difficult the investing landscape has become, having the market-tested results of RoboInvestor at your fingertips is almost essential if to outperform going forward.

I personally invite those reading this column today to join me in managing and prospering from current market conditions. Timing when and how to trade this big pullback takes more than just intuition – it takes exacting science and unemotional commitment from an always-thinking, always-adapting intelligent platform. Take me up on my offer today and join RoboInvestor to take control of your investing capital at a time where uncertainty and volatility are ruling the day. 

 “I’m investing my own money in each and every stock as my AI platform identifies.”

And remember we’re not talking about day-trading here.  I’m looking for 50-100% gains inside of the next 3 months, so my weekly updates are timely enough for you to act.

Click Here – To See Where I Put My RoboInvestor Money

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