This Stock Market Rally Is Not As Strong As It Looks – Mike Swanson (01/07/2019)

On Friday Jim Cramer basically called another one of his bottoms, because Jerome Powell talked.

If you can remember though we had a big one day stock market rally the day after Thankgivings on a day that Jerome Powell talked dovish too.

When that happened back then the market only went up a few more days and then collapsed.

So Friday’s move and Powell news IS NOT ENOUGH to think the market is now poised to go up all year.

It just isn’t. And you want to make sure you don’t buy lagging stocks in this market like this one.

The problem with stocks like AAPL is when the market falls they fall worse and when it goes up they just barely bounce.

They are dead money.

This doesn’t mean I don’t buy things. I just don’t buy fading fad stocks – and I will never tell you to do so either.

In fact, I made a big buy in something last week.

And that doesn’t mean that the market can’t hang in here longer than it did after Thanksgiving either.

I think it will.

In fact the day after this rally started I gave some resistance points for the S&P 500 that I am still sticking too – basically the 2550-2585 area.

I did an update yesterday in my private Power Investor group on what I think happens after that. And how long it will be before things really roll over again.

Many people are confused about the market and the daily gyrations. The most important thing for you to do this year is to follow the trends and align yourself with them.

Now when I say that I don’t mean hourly trends – which is what the media focuses on by every second talking about daily price action, but weekly trends.

Right now that trend is up for the moment, but when that momentum ends you MUST go with that change when it happens!

Now there are sectors that are in upward trends that will continue, because they aren’t trading lock-in-step with the S&P 500.

Gold is above it’s 200-day moving average and some other things are looking good.

To master the trends you have to understand them.

To help people do that I’m going to give away 70 copies of my classic book Strategic Stock Trading.

This is a box of books I have had sitting in my house for over a year that I have forgotten about.

I’m just going to mail them to people and give them away in a special offer.

Tomorrow I’m going to do a special video on Youtube about the top books to read and mention this special offer at the end of it.

When I do that I expect it will sell out very fast, because my last Youtube video has had over 7,100 views in a week and we’re only talking about 70 books here.

I’m going to post this video up on Youtube later today and then do an email for it tomorrow. I don’t know what will happen then. The books could take days to sell or sell out in an hour.

If you want to make sure you get the book you can get ahead of those viewers today by going here:

http://wallstreetwindow.com/beta/bookoffer.htm

-Mike



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