Christmas Profit Cheer

White List Us Print Issue Follow us on Twitter   Follow us on Facebook   A Publication of The Sovereign Society If Jingle Bells Sounds Like Alarm Bells - There's still Plenty of Profit Cheer By Evaldo Albuquerque, Editor, Exotic FX Alert Dear Sovereign Investor, Some are calling it the most important election ever. Given the immense challenges our country is facing, there’s no question next year’s election will be key to the future of America. In the short-term, the election will also be important for stocks. You see, the stock market tends to follow certain seasonal patterns. You’ve probably heard about “sell in May and go away”. That is perhaps the most famous seasonal pattern on Wall Street. It refers to the tendency of the stock market to decline from May to September. It has been very consistent throughout the years. This year was no exception. The market fell 17% during that period. That’s why it’s important to follow these seasonal patterns. >>Advertisement URGENT: Just a Few Hours Left... Until 11:59p.m. tonight, you can receive access to our "Financial Independence" kit at a ridiculously reduced price. This kit includes: FREE lifetime access to our most popular and most expensive research advisories. Plus every new one we may launch in the future... Complimentary one year access to our soon to be announced income letter... FREE Access to our flagship newsletters, The Sovereign Individual and Currency Capitalist. If you’re ready to accelerate your wealth faster than you ever imagined possible... without spending a fortune - this kit will help you get started right away. Looking ahead, the next major pattern to consider is the coming presidential election year. Since election years have been great to investors, a lot of people are optimistic about next year. But as I will show you, there’re good reasons to be cautious... Why the Stock Market Loves Elections The last two years of any presidential mandate tend to be great for stocks. According to the Stock Trader's Almanac, the market has climbed by an average of 13.6% per year for each of the last two years of an administration since 1832. The reason is simple: the incumbent party always tries to stimulate the economy during the last two years in order to win votes and secure re-election. So many investors hope 2012 will turn out to be a great year for stocks. But if you blindly follow this seasonal pattern, you can end up in a world of pain. There are a couple red flags to consider. Every Rule has Exceptions This year, the stock market is down by about 3%. So, unless we have a massive rally until the end of the year, this will actually turn out to be a bad year for stocks – against the trend. To the trained observer, that’s the first red flag. Another red flag is the fact that 2011 is literally looking a lot like 2007. Take a look at the daily chart of the S&P 500 below. In 2007, stocks dropped below its 200-day moving average (blue line) and failed to cross above it. That’s exactly what’s going on right now. Let’s also keep in mind that 2008 was an election year. I probably don’t have to remind you that investors suffered one of the worst bear markets on record that year, in spite of the election. Bad News: 2011 Looks A Lot like 2007 Pleaes click here to view larger image If Santa Doesn’t Show Up this Holiday Season... So how can you tell if 2012 will actually turn out to be a horrible year? Well, it’s impossible to know for sure. But in the short-term, there’s another seasonal pattern that gives us clues. I’m talking about the Santa Claus rally. Stocks tend to rally during the last five trading days of the year and the first two days of the New Year. Since 1950, this seven-day rally has resulted in an average gain of about 1.5%. More importantly, when there’s no rally, the next year tends to be a bad year for stocks. In 2007 for example, the market went down 3% during those seven trading days. The following year turned out to be the worst election year ever for the stock market. So if Santa Claus doesn’t visit the stock market this Christmas, 2012 may turn out to be a lot like 2008. Opportunities to Profit But for the Sovereign investor, that’s an opportunity for profit in the Forex market. The dollar has been moving in the opposite direction of the stock market. So if stocks fall, the dollar will rally. You can easily profit from that by buying the dollar against currencies that are more volatile, such as the Australian dollar and the Mexican peso. So if Santa Claus doesn’t show up this holiday season, 2012 may turn out to be a good year for the greenback. Best Regards, Evaldo Albuquerque Editor, Exotic FX Alert and Currency Capitalist P.S.  There is good reason why we are pointing our fellow Sovereign Investors toward opportunities in the global currency market. The fact of the matter is that radical changes are sweeping through the U.S. financial system. But there are ways to profit from this domestic disaster story - and that makes our research required reading for all investors. Here at the Sovereign Society, we’ve “circled the wagons” to form a powerful line of defense that anyone can use to survive and thrive through the challenging months ahead. You’ll discover, at no cost to you, a critical survival strategy that could help you protect your life savings, your home, and your business. But time is running out. Our offer ends 11:59 p.m tonight. Click here if you’d like free access to our most popular and most expensive research. >>RECENT ARTICLES 12/21/2011 Why Germany Won't Let the Euro Die Although the euro will most likely remain very weak in the coming months, it will survive this crisis in the long-term. 12/12/2011 450 Reasons Gold Prices Will Continue to Rise Over the course of history, this shiny, yellow metal has intoxicated many. 12/12/2011 The Euro Breakout/Breakdown I Told You Was Coming Just Happened! Check it out in today's EUR/USD daily chart! 12/9/2011 FACTA Driving More US Citizens to Expatriate The IRS has an active prejudice against U.S. persons with offshore bank accounts. 12/8/2011 Why Performers Rock to a Forex Beat Playing to the beat of strong currencies! If you want the government to stay out of your life as much as possible... There’s an important new book on financial and personal freedom that you may want to read... it’s called The Sovereign Survival Guide: How to Thrive During the Great American Meltdown. This ultra-timely guide reveals how you can live a better, freer, more prosperous life... by avoiding our money-hungry governments’ never-ending assault on your wealth. This information is so critical, and so important... that we’d like to send you a copy at no charge. To learn how to claim your free copy, click here. HOME    |     ABOUT US    |     PREMIUM CONTENT    |    CONTACT US

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