Do You Have the Guts to Buy the Crash?

A potential "silent buy"... October 16, 2014 Archives | Unsubscribe     Do You Have the Guts to Buy the Crash?   A potential "silent buy" Playing small-cap strength Plus: What's wrong with Russia?   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner It's a great day to be an investor. Or not... Economic data flat-out sucks. Producer prices, retail sales, and the New York Fed's Empire manufacturing report all missed estimates yesterday. World markets are in the garbage disposal just waiting for someone to flick the switch. ISIS is taking over the Middle East. And if the terrorists hiding in your closet don't get you, Ebola will... Add it all up, and you get a tremendous flush. The S&P 500 was down nearly 3% at one point on Wednesday, marking its worst losses in nearly 3 years. Traders are flat-out panicking. Every talking head on the news is screaming for you to sell your family and hide in the woods. And volatility is chopping up everything in sight. Sure, stocks almost climbed out of the hole they dug yesterday afternoon. But this morning's action is more of the same. Futures are in the gutter. Every single Dow stock is red. The October curse is apparently alive and well... But here's what they're not telling you: There are a couple of key signals flashing right now indicating nasty dip could be closer to a bottom than a mega-crash. And while it might not be time to buy with both hands, you could have a shot to buy one-handed and bring home some serious bottom-fishing gains. It all comes down to small-caps, the most hated group of stocks on the market this year. This week, we're beginning to see a change of character in the small stocks. The Russell 2000 small-cap index is actually higher on the week--while larger stocks continue to bleed out. That's huge. Remember, these stocks have been tanking all year. At the start of the week, the Russell was down nearly 10% year-to-date, compared to about a 2% in the S&P. As I said earlier, it's not time to buy with both hands. This market is just dying to slaughter some pigs--and you'll be one if you jam both hands in the trough this morning. But if we continue to see small-caps attempt to put in a bottom, that could be your signal to grab a few shares for a snap-back trade. It will take guts to try to play this potential move. But if you close your eyes and buy at the right moment, your wallet will thank you.         5 Tiny Companies to Change the World Five small companies with enormous potential are on the verge of changing the way we live... and you could be one of the first to find out how to turn their success into ultra-wealth. Click here now for details.           Rude Numbers Targets, Predictions and Wild Guesses   173 points dropped from the Dow Jones Industrial Average Wednesday as investors unloaded their blue chip stocks... 22% of all stocks trading on major U.S. exchanges are above their respective 50-day moving averages... $1,237 marks the spot for gold futures just before the opening bell. The yellow metal is down $7 today despite a reeling stock market... $2.96 is the price of copper this morning. Dr. Copper is trading below $3 for the first time since April. 1,828 is where you'll find S&P futures early this morning. That's a full 1% overnight drop...     Rude Trends When to Buy... When to Sell   [Ed Note: There will be no Rude issue tomorrow. I'll return with a new trade for you bright and early Monday morning.] Hop in the Rude time machine--It's time to talk Russia: "The collapsing Ruble and declining oil prices will cause Russian CAPE to rise even as the MICEX falls," scolds a reader. "This is why your buy Russian stocks play will not work out." Sounds complicated. Want a simpler reason that explains why my Market Vectors Russia ETF (NYSE:RSX) play won't work out? We got rid of it back in July. Here's the full story... Back in the spring when Russia was first sneaking around the Ukraine, I argued that Russian stocks could be one of the best contrarian bets in the world. First, Russian equities were dirt-cheap and appeared to be bouncing off their March lows. Secondly, no sane person would want to buy Russia. This fact alone usually sets up for a nice trade... However, that was before rebels "dispatched" that Malaysian Airlines flight. That tragedy really changed the tone of the entire situation. With the threat of more sanctions from the EU, it was time to pack this trade in and look for better opportunities. A shirtless Vladimir Putin on horseback who apparently doesn't care if his own country's market craters isn't exactly high on my list of acceptable risks. So we took the money off the table. Easy. The situation changed--and we adapted accordingly. And as our reader points out, cheap can always get cheaper. Sometimes the cheapest market in the world is cheap for a reason... [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   What NEVER to Put in Your Child's Mouth [must see] Uh-oh -- unseen catastrophe for Silicon Valley? Have you Seen this Crazy Public Law 110-343?     BE SURE TO ADD rude@agorafinancial.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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