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We Are Still Undergoing A Massive Stock Market Cycle Shift – Mike Swanson (02/25/2019)

Going into the end of last year and at the start of this year I released a series of videos in which I said that the stock market weakness last year and gyrations across multiple financial markets represented a major stock market cycle shift that would lead to a very nasty bear market.

The stock market rally that began the day after Christmas has not changed my view on this, because we are seeing new leadership sectors emerge inside the stock market while past leaders continue to falter.

If you want to beat the market you MUST focus on this reality

I know everyone is obsessed now with the stock market averages, but when you look beyond the simple stock market action and at what has been happening it is clear that a slow motion change is taking place.

Here is a list of things happening so far in 2019 to think about:

1)Gold went through $1300 to continue its leadership strength going up faster than the stock market as it has been continuing to do so since last Labor Day.

2)An inverted global bond market and collapse in the Baltic Dry Index telling us that the global economy is still slowing down.

3)The Federal Reserve throwing in the towel on further rate hikes and even talking about ending its “QT” program sooner than expected.

4)Defensive sectors continuing to do better than the stock market averages while the past winners such as the FANG stocks simply languish and lag.

We came into this year at the end of the interest rate hiking cycle to tell us that mega money shifts were starting.

This of course is huge opportunity for those that adapt and take advantage to the new sectors emerging as leaders this year.

And so gold stocks are now the play to be in and the stocks to buy.

The sad fact of the matter is that few are taking advantage of them, because they think that the stock market rally means a return to business as normal and so most investors are simply holding on to the past winners that they bought a year ago or two years ago and are seeing their accounts barely go back up even with the stock market rally.

Too many people are holding on to broken stocks and there is no better example of this than Apple.

AAPL still is trading well below its 200-day moving average, because it is a broken stock with poor relative strength. It barely goes up when the market goes up and so is in a position to totally dump when the market ends up having another drop later this year.

I don’t see why anyone really holds this stock anymore when there are some many stocks and individual sectors now doing better than Apple.

Remember last year when Apple announced that it was no longer going to report how many individual phones it was selling anymore?

Apple bulls at the time said the news meant nothing, but now we know the truth as Apple downgraded earnings estimates and the stock broke down.

Do you know anyone excited about buying the next Iphone?

I had an old Iphone and when it broke I went to the store to get a new one and found out it would cost me almost $1,000.00.

Suffice it to say I laughed and walked out and bought a cheap phone off Ebay.

I’m not going to spend $1,000 for a stupid phone and millions of people like me never will buy an Iphone ever again!

They are designed to stop working so you have to buy a new one.

In other words they are JUNK and everyone knows it.

We don’t need to buy a fad Iphone to feel special when there are so many other phone choices anyone can buy.

This is why Apple is a dead money stock and why even Warren Buffett has reduced his ownership in it at the end of 2018.

It reminds me of CSCO in 1999 – a stock everyone owned that had been a market leader and then became a market laggard for a decade after its 2000 peak.

Compare Apple shares to the excitement now in dope stocks or the emerging excitement in gold prices as central banks start to buy gold themselves.

Compare that AAPL chart with the chart of gold company Osisko.

I own OR and eight days ago on 2/17/2019 I highlighted it as a gold stock to buy for members of my private Power Investor group.

And you can see what it has done – it has soared. We got a 10%+ gain in a week last week while AAPL did nothing!

Money can be made like this in the market when you look to do the work to find the best stocks to get in the best sectors while everyone else DOES NOTHING but sit on past fad broken stocks like AAPL out of laziness.

The early bird gets the worm and AAPL is now a rotten Apple!

Throw it out and get in a winning trade is my advice to people who own the rotten Apple and then the money can be used in new winning plays.

What AAPL shows us all though is the impact of the cycle shift we are actually slowly experiencing. Past big winners are now broken and now new winners are rising up thanks to this cycle shift.

And it’s only just starting.

And it is my goal to help you be on top of these new winners.