Are the markets in for a BIG rally?
I know that sounds weird with the markets humming like they have been since last November – but don’t just take it from me, if you believe some of the Wall Street whisperers – we could be looking at a HUGE second half of the year.
This is GREAT news if it’s true – and who couldn’t use more opportunities to make some cash in the market?
I know I could!
But aside from my own expertise, me being who I am, after hearing these ramblings – I wanted to know why some of these people are so excited for what’s coming up over the next few months.
So, after delving into it – what it all comes down to is science.
Science is awesome…
And I don’t mean the kind of science that tells us why the universe turns in a certain direction or how atoms stick together.
No… I’m talking about the type of science that makes us money.
I know what you’re thinking, “There’s a science that can make us money?”
Yes… there is. Though, some may argue that it’s more mathematical than scientific – the fact remains that it takes more than math to decipher the movement of the markets.
That’s where science comes in…
Reading the charts and graphs, looking for the patterns, figuring out what they all mean – that’s science. Honestly, it’s almost more like MAD science – as there are so many different factors that can determine the way the markets move – it’s almost ludicrous to try and make sense of it all.
But like myself, some others have been able to make sense of it too – and it looks like it could be good news for us…
And it all starts with the Volatility Index (VIX).
This all came to light after one technician brought up the fact that the VIX has averaged a reading of 11.54 in 2017 – the lowest it has ever been.
Couple this with the fact that the S&P hasn’t experienced a 5% pullback in over a year (another almost record) – and you’ve got the makings of a market where volatility may soon reign supreme.
Now, please keep in mind that volatility isn’t always a bad thing – in fact, many people will tell you that’s when you’ll have the opportunity to make the most money – so don’t let words like “uncertainty” or “unstable” fool you.
However, I can see how news like this could make some people nervous – especially those that only look at the elite stocks…
LPL Financial’s, Ryan Detrick sent this warning: “Blue chip stocks can go a little bit further without a 5% correction, maybe, but when you consider the calendar, we’ve got August and September, [there are] troublesome months coming up here.”
He also went on to say, “The odds of going the full year without a 5% correction are extremely slim.”
Meaning that we could soon be entering into a world of volatility…
In fact, historical charts show that since 1950, there has been a 5% pullback in the market in 91% of years from then until now. Still, even though most years do see a correction, if we are in for more upside over the longer-term, investors should actually buy the dip if it occurs.
That’s as bad as the news gets though…
Because most analysts agree that the economic outlook is going to be a positive one – based on optimistic earnings expectations. Wall Street is expecting earnings growth between 6%-7% for Q1 and 7% for Q2.
That’s great! Love it! But here’s the part we really need to pay attention too…
Historical charts also reveal that given the gains that the S&P has made during the first two quarters of 2017, the market could potentially be setting set up for another rally over Q3 and Q4!
Why? Well, let’s go back to those charts I mentioned earlier…
Since 1950 – whenever the S&P has rallied more than 8% over Q1 & Q2…
It has rallied up to 5% more, 84% of the time!
This is BIG!!
And should have even the most conservative of investors chomping at the bit…
Which is why it could be the PERFECT time to get in on the action! If you want in – let us help you! GorillaTrades has built its reputation on finding winners in all types of economic climates. Our risk-adverse system systematically divides the potential winners from the potential losers at an astounding rate.
And if analysts are right – we’re all going to need to be on our toes over the next few months.
Please, consider joining GorillaTrades today…
It may be the one thing to guide you through the tumultuous seas of a volatile market!
“Success is a science; if you have the conditions, you get the result.” – Oscar Wilde
