Your Chance to Buy the Dip is Coming

Daily Reckoning . Archives . Unsubscribe

The Rude Awakening Monday, April 8, 2013 |1000 Hours Your Chance to Buy the Dip is Coming Can bad earnings crush the rally? How to deploy your sidelined cash... Plus: What’s the deal with precious metals? Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner After the markets close, Alcoa will probably drop an ugly number to kick off earnings season. That’s its style. The stock is already deep into the red this year, pushing closer to multi-year lows with every passing week. Would a terrible earnings announcement really surprise you? It’s no secret that Alcoa and disappointment have become an inseparable pair. But that won’t stop you and everyone else from jawing on about how bad earnings will crush the markets this month, sparking a nasty market crash. How quickly you forget... The market is -- in all likelihood -- anticipating a weak first quarter. That’s because most companies have already come out with crumby guidance. More than three-quarters of S&P 500 companies issued negative guidance, according to CBS News. It’s not new information. So until we see some really catastrophic misses, it will remain business as usual. Momentum has waned. But I doubt lumpy earnings will be the catalyst for a mammoth selloff. You know that stocks have been locked in a tight back-and-forth for weeks. And everyone (yes, everyone) is expecting some sort of major push lower. That’s why they have no skin in the game. According to the American Association of Individual Investors, cash is king right now. Individual investors are sitting on their wallets -- causing cash allocations to rise to a 16-month high of 23%... I told you last week that I wouldn’t be surprised if stocks started to drift downward this month. That’s not just some gut feeling. In fact, there’s plenty of data to back up the beginnings of a seasonal dip. “Jonathan Krinsky, a technical analyst at Miller Tabak & Co., points out there have only been two years since 1980 in which the S&P 500 didn’t witness at least the beginning of a 5% correction by the first week of April,” reports The Wall Street Journal. There it is -- the perfect opportunity to deploy some of that sidelined cash. Here’s how it will play out for you... Investors are skittish right now. Anyone who bought late in this rally will get sucked into all of this talk about a crash when the market leaks lower. Their shortsighted moves are your gain. Quit complaining and buy the dip. Hitch your horse to the big, safe stocks the market loves. You won’t regret it... Rude Numbers Targets, Predictions and Wild Guesses 88,000 jobs were added to the economy in March. That’s well below expectations that ranged from 175,000-200,000... 51% of U.S. listed stocks remain above their 50-day moving average. That’s down from 57% just five days ago... $1,574 buys an ounce of gold today. The yellow metal rallied after briefly dropping below $1,540 late last week. Meanwhile... 1,551 marks the spot for S&P 500 futures early this morning. $182 is where you’ll find Bitcoin this morning, up from $150 just 24 hours ago. The casino is open! Rude Trends When to Buy... When to Sell Precious metals are trading all over the place. You’ve already endured big drops in gold and silver late last week. And judging by this morning’s action, I doubt it will smooth out anytime soon... So while you’re banging your head on your desk in frustration, I’m keeping a close eye on the charts. I’ll have more to report on gold and silver -- and some possible price targets -- later this week. [Ed. Note: Send your feedback here: rude@agorafinancial.com -- and follow me on Twitter: @GregGuenthner] Ignore At Your Own Peril Today's Must-Read Links U.S. Oil Royalties Party...All AREN’T Invited! Since when is the Pentagon giving out FREE investment recommendations? Check Your Pockets and Your Piggy Bank... And Hoard These Coins Additional articles and commentary from The Daily Reckoning on: DR iPhone APP To end The Daily Reckoning’s Rude Awakening e-mail subscription and associated external offers sent from The Daily Reckoning and The Rude Awakening, cancel your free subscription here. Please Note: If you unsubscribe from The Rude Awakening, you will also be unsubscribed from The Daily Reckoning. If you are you having trouble receiving your Rude Awakening subscription, you can ensure its arrival in your mailbox by whitelisting the Daily Reckoning. Copyright 2013 Agora Financial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202. Nothing in this e-mail should be considered personalized investment advice. A lthough our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice.We expressly forbid our writers from having a financial int erest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation.Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.