The Idiots Are Coming--You Can Take Their Money

The idiots are coming. The disbelief over last year's broad-market rally is beginning to fade. Now, poorly informed "traders" and investors are lined up and ready to start throwing their hard-earned money at the stock market once again. March 21, 2014     The Idiots Are Coming--You Can Take Their Money   Who needs a house when you can speculate with stocks? Marching toward euphoria Plus: Is it time for a correction?   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Brace yourself... The idiots are coming. The disbelief over last year's broad-market rally is beginning to fade. Now, poorly informed "traders" and investors are lined up and ready to start throwing their hard-earned money at the stock market once again. Consider this 100% true (and completely serious) headline I ran across this week: 3 Reasons to Tap Home Equity to Buy Stocks Are you kidding me? The article goes on to explain that rates are low and, hey, stocks are much more liquid than real estate. Turn that debt into cash! What could possibly go wrong? After all, if you make a bad trade here or there, just ditch the house and hit up your broker for a loan. The discount brokers could even make little "Hoovervilles" for broke traders who took one too many gambles with borrowed money. I've already told you the market's stellar performance wouldn't remain a secret forever. Now, we're getting to the point where sentiment appears to be somewhere between enthusiasm and exhilaration. After waiting on the sidelines for years, the average investor is getting drawn back into the stock market... It's important to note that this sentiment stuff is far from an exact science. And there's no way to say how far along we really are on this sentiment "cycle"--or how long each phase will last. But right now, it certainly feels like public perception of the market is changing. Use it to your advantage. The idiots are ready to hand you stacks of money on nearly every trade. They're clamoring to invest in all the "hot stocks". They'll try to trade the news or they'll make huge earnings bets. On the other end of every single one of these losing trades? That's where you come in. Play the charts. Buy the breakouts--and pass the stocks to the idiots when they become overextended. That's how you make money in this market...         URGENT: This Upcoming Date Could Go Down in History Certain dates in history stand out above all others. July 4, 1776… Dec. 7, 1941… Sept. 11, 2001… Big things happened, and left a mark that spans generations. But looking ahead to March 31, 2014? Well… something else is going to happen. For most of the public, the day will come and go. But for the defense of the nation? It's going to be big. I mean…Big. CLICK HERE to learn why March 31, 2014 could change everything.           Rude Numbers Targets, Predictions and Wild Guesses   $500,000 buys a Bali villa. An anonymous buyer forked over 800 Bitcoin for the tropical residence. It marks Bitcoin's biggest transaction to date... $35 million in capital injected into the maker of Candy Crush is set to return a 10,000% gain to buyout firm Apax Partners. $4.35 marks the spot for natural gas futures this morning. Natty is sneaking lower as winter slowly slips away... $1,341 is where you'll find gold futures today. The yellow metal finally gets a break from a tough week, gaining $10 to start the day... 16,304 is where you'll find the Dow this morning. The Industrials are still nearly 200 points away from new all-time highs...     Rude Trends When to Buy... When to Sell   The markets finished higher yesterday. But some interesting action was happening under the surface... Financials led the way. By 4 p.m., the entire financial sector was up more than 1.5% (I have a new trade in this sector for you in today's PRO, by the way). Momentum names, however, did not impress during yesterday's session. And the broad market remains near the top of its trading range... "From a technical standpoint, nothing has changed in the S&P 500. After last week's big declines, the S&P started this week by moving higher, but it's still riding the top of its price channel right now. That means there's a lot more downside risk than upside opportunity," explains our trading buddy Jonas Elmerraji. "A correction down to support still looks more likely than not." Keep this in mind when you're trading today and early next week. No sense in backing up the truck on the long side just yet. Let the market do its thing, protect your money, and prepare for some downside action... [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   Secrets of an Ex-IRS Hit Man Revealed "Hidden" Treasury Document Plans to Devalue Your Money Conservative Talk Show Host Goes Crazy on Camera     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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