I've been trading for a long time -- since I was a teenager, in fact. By 1999, I became a member of the American Stock Exchange, and before the age of 25, I was recruited to be one of the original market makers trading Nasdaq 100 option.
All this to say, I've developed a keen awareness for the market's pulse over the years.
To keep you abreast of overall market tone, I frequently update my Profit Amplifier subscribers, recapping the week's action with predictions and any cautions for the upcoming trading week.
Here's a brief rundown of what I shared with them this week...
Aside from the Kavanaugh confirmation soap opera occupying everyone's time, the biggest news of last week was certainly trade.
The past week's market action continued as I predicted in my last note, melting higher with a pop on Monday as Canada joined NAFTA 2.0, now called the United States-Mexico-Canada Agreement (USMCA), at the 13th hour.
Now our neighbors to the north and south have agreed to revamp the nearly 25-year-old agreement in another win for the Trump administration. Details on the deal will be released soon, but this is a good thing and removes some tail risk pertaining to economic growth. The deal, along with the already-known Iranian sanctions, are both pushing oil higher -- a move that surprises me.
I do see some logic in an initial pop on oil as Canada and the United States come to an agreement, but, without details, we don't know how Canadian/American energy resources are affected. There's more here, and, the way I see it, there's a higher likelihood that the deal will help ease energy prices -- not drive them.
China: Trump's Next 'Yuuge' Deal?
China and the United States have yet to come to an agreement, but I do believe one will be struck. Recent data out of China shows an economy slowing, both organically and due to tariffs. My research puts more blame on organic and global growth reductions than tariffs... again, reason for oil prices to stall a bit.
I don't expect a major market breakout to the upside in the near-tem, unless we reach a trade agreement with China.
The Fed And Other Market Data
Fed Chair Powell spoke this week as well, reminding everyone that the Federal Reserve is sticking to their plan to raise interest rates. In his speech, Powell said gradual rate hikes are needed to hold down the risk of inflation. This week, we also get a look at employment data and ISM non-manufacturing PMI for September (released yesterday), as well as the BLS report on Friday.
Going into Wednesday, the consensus estimate for ISM non-manufacturing PMI (which measures business activity, like deliveries, employment, new orders, etc.) was for 58.1, a decrease from 58.5 last month. Markets needed to see a beat on this number -- and they got it! The actual number came in at 61.6. This is the strongest result yet for the composite, which was established in 2008. ADP employment payroll numbers were also stronger than expected.
An Invitation To Trade With Me
While the rest of the crowd is simply buying stocks and hoping for the best, my Profit Amplifier subscribers and I have spent years taking more than our fair share of gains. And you can join us for the ride...
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The goal of Profit Amplifier is to "set it and forget it." We use good-til-canceled (GTC) limit orders to set our profit goals and even use stop loss trigger orders in case a trade goes against us. The goal here is to mechanize the trade, remove as much emotion as possible, and give you freedom to make money even while you're out living your life!
With my trading strategy, we always limit our risk -- most of our trades can be executed for under $1,000, if that's what you decide is right for you. Always remember that you're in control of your own portfolio... But I'm here to help you along by generating ideas and helping you control your risk and goals.
Beyond that, let's have some fun and remember that this is a long-term game. We're not interested in putting all our eggs in one basket with the hopes of striking it rich on a few trades. That's a great way to lose your nest egg. The goal here is to win more than we lose and build our wealth along the way. You can sock away earnings and keep your risk per trade the same -- that's one way to grow your account without scaling your risk.
My track record over the many years I've been offering trade ideas has shown that I've been able to deliver on that goal, even with the losers that will rear their ugly heads from time to time. If you give Profit Amplifier a risk-free trial and decide to stick with us, then the cost is low enough that one or two winning trades can cover an entire year's subscription, with the rest of the 50+ trades there for the picking.
I'm Using This Strategy To Hedge Against The Unthinkable...
When the mid-term elections start to dominate the headlines, I'm preparing my readers for what could be one of the most contentious (and volatile) times we've seen in quite some time.
I can't reveal all of the details today, but you should know that this strategy may be one of the only ways you can protect your portfolio -- and profit wildly -- from the potential chaos to come.
I've just finished putting together my case in a special report. I lay out exactly what I think is going to happen, why, and what you can do about it. You can go here now to read everything.