The Next Big Market Move

Greg Diamond: A major turning point is coming in February… Human nature hasn’t changed much… It won’t be a smooth ride next year… A broad rally today… Cheering the inflation numbers… It’s ‘good news’ – for now…

Today is about big moves – present and future…

We’ll get to today’s attention-grabbing broad market rally in a moment…

But first, I (Corey McLaughlin) must lead off today’s edition with the brand-new prediction that our friend and Ten Stock Trader editor Greg Diamond broadcast today. It’s about what he describes as an even greater “inflection point” coming for the markets in early 2024.

In a free presentation, Greg delivered this message with conviction… for good reason…

As you likely know, Greg called the top and bottom in the markets last year… and warned of a turning point to come in March 2020, three months before COVID-19 crushed the stock market. Marc Chaikin, founder of our corporate affiliate Chaikin Analytics, joined Greg for the presentation and lauded his market-timing skills.

In short, you ought to consider Greg’s outlook when he shares it…

This morning, Greg told thousands of viewers that he sees a “massive” inflection point for the markets coming in February – and not only that, but on a specific date. A critical market “cycle” that he trusts and has used with success is now pointing to, as Greg said…

A rare historic move in the market on February 14, 2024… and it will open a series of fantastic moneymaking opportunities both leading up to and coming off that date.

Now, I realize this claim may sound like it’s derived from Federal Reserve Chair Jerome Powell’s astrology or other hocus-pocus strategy. But I can tell you that Greg is used to hearing that kind of criticism… and he and we largely ignore it at this point.

Greg’s predictions are rooted in more history and context than most investors ever consider in their lifetimes. And they’ve proven to be lucrative and money-saving for subscribers over the years, as was shared during the video event…

Just recently, as we’ve written here, Greg remained steadfastly bullish even while the S&P 500 Index hit mainstream “correction” territory lately and flirted with key technical “support” levels, like the 200-day moving average. That advice has proved worth listening to.

We hope you listened the last time Greg went this public with one of these dates, too…

That was about two years ago, which turned out to be a spot-on call about February 2022 and the year-long bear market that most mainstream financial analysts didn’t see coming… Then he used his same brand of analysis to turn bullish late last year.

And three months before COVID-19 struck the U.S., Greg called for a big market move in March 2020. He’ll tell you he didn’t know that a pandemic in particular would cause a market meltdown, but he was saying the investing environment was ripe for a turning point… and that the “why” didn’t really matter.

Today, Greg went into detail about his trading strategy…

He’s a technical analyst, yes, but he uses a particular strategy that few others touch and many investors have never even heard about… And that’s exactly why it’s so insightful and powerful. As Greg said today…

Prices in the short term move because of human emotions, and human nature hasn’t changed much over 100 years of stock market history. So if you know where to look at how to interpret the data, the stock market rhymes. It repeats itself… which you can take advantage of for huge potential gains faster than you can imagine…

That’s what makes our strategy so reliable, year after year, in good times and bad.

Greg went on to describe precisely why right now his analysis is telling him the market’s next big turning point is just a few months away… and how he plans to navigate the period ahead and prepare for both bullish and bearish moves. As he said…

It won’t be a smooth ride. We can see some absolutely brutal hiccups along the way, which will cause many people to high-tail it back on the sidelines, but not us…

Click here to watch or listen to the full presentation with Greg.

He shares how you can “see stock moves most people miss” in part by focusing on just a narrow number of tickers and decades of market history… the time-tested cycles that he believes in… and even a free recommendation to prepare for the move he expects this February.

As I mentioned, Greg is also joined by our friend Marc Chaikin. Marc offers a way to boost returns from Greg’s recommendations by as much as five or 10 times, and he shares a pair of sectors that he thinks could “roll over” around the same time Greg is warning about.

Marc, by the way, also predicted the crash in March 2020 and the market tops and bottoms in 2022. So when these two guys agree, it gets our attention. Again, you can stream the brand-new video for free right here.

Here’s what else got our attention today…

Just about everything…

In short, it was an “almost everything is up” day, with the small-cap Russell 2000 leading the major U.S. indexes and finishing more than 5% higher. The tech-heavy Nasdaq closed 2.4% higher, and the S&P 500 and Dow Jones Industrial Average were up 1.9% and 1.4%, respectively.

All the major sectors and asset classes I follow daily finished higher or were little changed, except for bitcoin’s spot price and natural gas futures, which fell a few percent… (Oh well.)

The catalyst for the second broad one-day rally we’ve seen this month comes down to one thing: inflation… the story of 2021, 2022, and, for at least a little while longer, 2023.

Cheering inflation numbers…

I mentioned in yesterday’s edition that we would be watching for a reaction to the latest consumer price index (“CPI”) reading, covering October…

When the numbers came out this morning, Wall Street cheered the report. On average, it showed prices not increasing at all from September, suggesting to enough folks that the Fed won’t hike interest rates further. Lower gas prices last month did the trick. As global news service Reuters reported…

U.S. consumer prices were unchanged in October as Americans paid less for gasoline, and the annual rise in underlying inflation was the smallest in two years, bolstering the view that the Federal Reserve was probably done raising interest rates.

Though rents continued to rise last month, the pace of the increase slowed considerably from September. The softer-than-expected inflation readings reported by the Labor Department’s Bureau of Labor Statistics (BLS) on Tuesday pushed U.S. Treasury yields lower and sparked a stock market rally.

For people who actually live in the real world, “unchanged” doesn’t mean all prices remained the same on every item in America. It doesn’t even mean inflation stopped rising. So-called core CPI, which excludes food and energy, rose by 0.2% in October, for example.

And a decline in gas prices offset rises in rent that made the monthly headline CPI growth halt for the first time in more than a year… but it’s still up 3.2% from a year ago. More from the report via Reuters…

Food prices gained 0.3% after climbing 0.2% in each of the prior three months. Grocery food prices increased 0.3%, driven by higher costs for meat, fish and eggs. Cereals and bakery products also cost more, while fruit and vegetable prices were unchanged.

So, your or your neighbor’s or your tenant’s rent and grocery bills might still be higher than a month or two ago, even if prices at the gas pump are lower.

In other words, there’s still inflation, but investors took today’s report as a signal that Fed rate hikes are largely doing their job. That doesn’t mean eliminating inflation, just keeping the pace closer to “normal” than the 40-year highs the economy was experiencing. So the Fed doesn’t have to push the “cost of money” higher.

It’s all ‘good news’ – for now…

On the inflation front, “good news” (disinflation, or a slowing pace of inflation) is good news for the markets – for now. On the jobs front, as I wrote last week, “bad news” (a slightly higher unemployment rate) is also good news for the markets – for now.

It means that short-term interest rates, largely dictated by the Fed, aren’t likely to move substantially higher. Slowing inflation and rising unemployment mean the central bank likely won’t raise its benchmark bank lending rate more, instead letting its “restrictive” policy play out as it is.

So that means the financial gravitational pull of a higher cost of money won’t get any stronger, which is good for stock and bond prices. That appears to be the catalyst for today’s rip-roaring rally for both major asset classes.

Make hay while the sun shines. The “Fed pause” trade we talked about last week could still be in the early stages of baking. As Stansberry Research senior analyst Brett Eversole has shared, double-digit returns for the S&P 500 have been typical in these periods.

Eventually, though, is what comes around the next corner…

It’s not at all out of the question that this “good news” turns to “bad news” relatively quickly, if or when the economy turns south more than many observers are expecting. Then the happy script flips.

After all, today’s “better than expected” CPI report came as a surprise.

So could the downside… and the narrative(s) that might dominate market chatter in 2024.

The risks to consider on both fronts are that disinflation turns to deflation (the market won’t like that) and that a slow build in unemployment turns into a spike. If those things are happening, that’s an undeniable recession – and a leg down in stocks would be expected.

These dynamics might take some time to play out, though, as anyone who has been predicting a recession for more than a year could tell you…

Putting our two main stories together today, perhaps we’re getting at the “why” of Greg’s forecast for the market’s next big move in early 2024.

Still, as he will tell you, it’s not essential to know the “why” in his strategy. That’s the point.

He didn’t know why the market would move in 2020 or 2022. Yet his subscribers made money while dealing with wild uncertainties.

We can’t know exactly what’s going to happen in the future. But we can make decisions based on the risks and potential rewards we see. And when Greg in particular sees those risks and rewards, I hope you’re paying attention.

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Recommended Links:

LIVESTREAM NOW AIRING: Major Disturbance in the Gold Market If you own gold or gold stocks, watch our livestream right now. The man who predicted the 2020 and 2022 market crashes predicts an event in 2024 that could have a major impact on gold. The last time he called for a move like this, you could have quadrupled your money in 16 days. We’re livestreaming the full details here. READ IMMEDIATELY: Huge Banking Overhaul Underway The financial community has some big changes planned for your money. The Federal Reserve, U.S. Treasury Department, and White House are all involved… as are at least 41 American banks and credit unions. This overhaul could change how you cash your paycheck… access your Social Security income… and even how you pay your taxes. That’s why it’s crucial you understand what’s going on before your bank is affected. Get the full story here.

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New 52-week highs (as of 11/13/23): CBOE Global Markets (CBOE), Cameco (CCJ), Cencora (COR), Costco Wholesale (COST), Cintas (CTAS), Comfort Systems USA (FIX), O’Reilly Automotive (ORLY), Qualys (QLYS), Sprott Physical Uranium Trust (U-U.TO), and Walmart (WMT).

In today’s mailbag, more thoughts about WeWork’s recent bankruptcy and its co-founder Adam Neumann, the focus of our colleague Dan Ferris’ latest Friday essay… As always, send your comments and questions to feedback@stansberryresearch.com.

“According to your report, [Neumann] is a good example of greed gone awry. The competitive element of greed can be a positive, but the accompanying exclusive self-interest is not. To use others is never okay. Thanks Dan for saying as much without saying it!” – Subscriber Rich G.

All the best,

Corey McLaughlin
Baltimore, Maryland
November 14, 2023