2 reasons to be scared right now

Sean BowerI’m writing to you with concern today because virtually everyone has money in the stock market one way or another, and yours could soon be in danger.

I don’t mean to sound dramatic, but there are some legitimate signs that are worrying me about the current state of Wall Street. I’m simply sharing my thoughts with you so that you can see exactly what I’m seeing.

Here’s what I’m obsessing over right now…

This isn’t to say that we won’t be able to take advantage of any kind of impending market fall, but it’s still important to concern ourselves with the warning signs in order to protect ourselves from any significant damage.

Before I tell you how I plan on massively profit while everyone loses, here are the 2 scariest things I’m seeing right now:

1. Struggling to hit new highs

Let me apologize ahead of time for getting a bit technical, but it’s necessary at the moment and I’ll keep it very simple. For this newsletter, I’ll be using the benchmark S&P 500 (SPX), which serves as a representative for the overall market.

Go ahead and take a look at the chart of SPX from Stockcharts.com:

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See those 2 arrows I added to the chart? Those are simply pointing out the last 2 new highs the market hit.

Hitting new highs for every market upswing is normal and healthy for a bull market. But look at all the upswings in the past few months that didn’t reach a new high.

That’s the first warning sign that this bull market is slowing down.

2. Scary trend

Before I explain this one at all, look at the SPX chart again with my markings (this time it’s the long-term chart instead of the short-term chart I used earlier):

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So trend lines show you exactly what the name suggests: trends.

I put the trends in chronological order here so you can see how the trend lines are actual trending themselves. Trend #1 shows you a relatively steep rise, then #2 is a bit less acute, which is signaling a leveling off of sorts.

And now we find ourselves in the midst of trend #3, which is actually descending at the moment. The trend of the stock market is clearly a scary thing right now.

So what do we do now?

Well, the market hasn’t told us explicitly that it’s done climbing yet. And until it does, I’m staying cautiously bullish.

And even when the market finally does turn over and die, I’ll be there with the secret I learned in Code Breaker to change my strategy and make HUGE profits while everyone else is losing money.

Until then, fear is a good thing in the stock market—it keeps us from losing big. And right now it’s giving us some good reasons to be fearful at the moment.

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