And even though a market downturn was something we expected (our recommendation services issued short sell recommendations 2 days before the big fall), I’m not sure anybody expected a descent so big and fast.
But that doesn’t really matter now. Why? Because we can make money even faster when the market is headed down!
When the market dropped at long last, it fell HARD. And it dove right past several important signals as it did.
Sure, Wall Street tried to stage a recovery in the last week of August, but we clearly saw it fail after relatively modest gains. And in the past 2 days, the market has returned to its most recent losing ways.
Now it appears that the bull is long gone, all thanks to one of the fastest falls I can remember.
But we’ll sit quietly by as Wall Street panics because we know that when we use the right tools, a falling market can allow us to make money faster than a climbing one!
This is all because stock prices often act as though gravity is a part of the equation.
By that I mean that on the way up, when prices are climbing, it can often feel like they’re fighting against gravity. But on the way down, when prices are falling, gravity is almost helping the price drop more rapidly.
What causes this?
A stock trying to climb needs buying volume to sustain its momentum. Obviously, if the buying slows down, the climb will slow.
But a stock on the way down doesn’t even need selling volume to push it along. It helps, obviously, but isn’t totally necessary for a free fall. Instead, any lack of buying volume for a descending stock will be enough to pull the stock down.
It’s like keeping a ball up with a fan. As the fan slows, the ball is eager to fall – even without another fan pointing down from above.
When you know how profitable falling stocks are, you only need 2 things…
1. The tool that allows you to bet that a stock will fall, and
2. The secret to picking out the weakest stocks that are likely to fall hard.
Those things paired together can be an absolute money machine. This month’s issue of Midas Premium shows you how the tool I’m talking about, and even GIVES you some of the weakest stocks!