Don't Buy in July

Stocks set to tank--here's what you do now July 10, 2014     Don't Buy in July   Stocks set to tank--here's what you do now A laundry list of investor fears Plus: Tracking "bolt-on" profits   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Don't buy in July... Maybe this should be a new stock market rule. Financial reporters love rhymes, I presume, which is why "sell in May and go away" gets so much press every year. For the first time in months, it feels a little panicky out there. Yes, the maket will dole out some punishment this morning. A laundry list of issues is piling up all at once. There's bank trouble in Portugal, European stocks are tanking, the Fed said it will end the central bank's bong-buying by October, and earnings season is ready to bash your favorite stocks back into the ground. Here's an early-morning snapshot of the carnage: In case you happen to be colorblind, stocks are in the cellar--while precious metals are soaring higher. The small-cap Russell 2000 is leading the market lower this morning. It's set to drop by more than 2% at the opening bell. According to Bespoke Investment Group, the S&P 500 is on pace this morning for its largest negative gap opening since March 3rd. As investor fears quickly come to a boil, it's important to keep today's move (however things turn out) in perspective. Our resource expert Matt Insley summed up the brain scramble that the market's recent melt-up has caused, specifically the Dow's run to 17,000... "Allow me to answer the consensus question, with a few rhetorical ones," Matt says. "How much money can the Fed print? How long can interest rates stay near zero? How much better can the U.S. economy get? How much worse can the rest of the world get? "Get my drift?" No doubt many of these questions will be amplified after today's action. But that's precisely why the emotional herds of investors will never beat the market consistently... "17,000 is just a number. Just like 16,000 was a number," Matt continues." The market's epic run-up is only as good as its next day. And by the looks of everything I'm seeing in the market there are going to be a lot of good days ahead. We're still riding a 5-year, channeling uptrend. That's a trend you won't want to fight - no matter what the naysayers squawk." No, it's not time to sell everything and head for the crash bunker. But playing it safe for during this turndown is crucial. As I reminded you back in the spring, staying away from aggressive buys is the name of the game when seasonality and a weak market are working against you. Even if you're a longer-term investor, you can make a weak market work for you. And you don't have to sell everything and hide under a rock. Lighten up on stocks (especially any aggressive trades). Reassess your holdings and rotate into the safer sectors that are showing relative strength. Stick to the three best year-to-date performers in your longer-term portfolio we discussed early this week: utilities, health care, and energy.         "I hope we don't get sued for this…" I've just seen a controversial video you've got to check out. It's been viewed over a million times and reveals a little-known strategy the "world's greatest investor" uses to make his money. (Hint: It's got nothing to do with "value investing," long-term horizons or anything else reported in the mainstream press.) Click here for details on a secretive strategy rarely mentioned in public.           Rude Numbers Targets, Predictions and Wild Guesses   1,147 is where you'll find Russell 2000 futures before the morning bell. That's good enough for a 2% drop... 15,085 is where the Nikkei ended the day. The Japanese index slumped about 1.9% before the closing bell... $21.54 is the price of silver this morning. Silver is the biggest mover in pre-market trading today, spiking more than 2.2%... $1,343 marks the spot for gold futures. The yellow metal is trailing silver's gains, but up substantially in early trading, gaining nearly 1.5%... 16,773 is the number for the Dow Jones Industrial Average before the bell. The big index is set to open lower by about 140 points...     Rude Trends When to Buy... When to Sell   "Today, I want to share with you two simple words that can mean huge production gains for domestic shale producers," Matt Insley reminds us. "Bolt-on." Matt's been following some of the latest technology (and terminology) in the shale patch so you can work on positioning yourself for substantial profits following this energy mega-trend... "Bolt-on acreage is acreage that an energy producer acquires next to their existing acreage," Matt continues. "In that sense, you can bolt this acreage right onto an existing land package. Using another industry term, it's 'contiguous' acreage. Bolt-on means more acreage, more efficiencies and more future production." Also, it doesn't hurt that bolt-on announcements can lead to big gains. Click here to learn how... [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   How to Become Your Own "Banker" [must see] How to Quickly Become an Oil Millionaire without Owning Land Prediction: Largest Economic Opportunity of the 21st Century     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. 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