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2015/12/01

The Market's Playing a Dirty Trick On You—Here's How to Beat It

Rude Awakening
December 1, 2015
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The Market's Playing a Dirty Trick On You—Here's How to Beat It

  • Don't be fooled by a sneaky market
  • Fighting the Fed
  • Plus: Beating the masses into submission… 

Greg Guenthner coming to you from Baltimore, MD...

Greg GuenthnerTake off that dunce cap…

It's time you learned something very important about the stock market.

A long time ago, legendary trader Jesse Livermore said that the market is designed to fool most of the people most of the time. And you know what? He was right.

In fact, the market's fooling most of the people right now—from the financial geniuses all the way down to the dumb money. And it will continue to trick the best of us this month as we edge closer to the first potential rate increase in years.

But there is one way to keep the stock market from melting your brains (and chopping your profits to bits) before we ring in 2016.

If you can train yourself to shut out all of the squawking you're hearing about interest rate hikes, economic data, and commodity crashes and just play the big market trends, you'll end up a hell of a lot richer than 99% of the other investors out there...

Look, I'll be the first to admit the stock market has been one big pain in the rear this year. Every time it looks safe to buy, prices drop. And every time investors get spooked, stocks sprint higher.

That's frustrated traders and investors alike for 12 months now--which is probably why no one's feeling too excited about the major averages once again creeping close to their highs. Since December 1, 2014, the Dow Jones Industrial Average has chopped all over the map. Yet it's down a little less than 1% since then. Same goes for the S&P 500. Over the past 12 month, the big index is up a measly 0.4%.

One Year to Nowhere...

The final trading month of the year begins now. And once again, we've got new highs in sight for the Dow and the S&P 500. But the market has beaten the masses into submission once again. No one's watching for new highs. Instead, they're worried about a rate hike ruining their hopes of a holiday rally…

"The rate hike, now widely anticipated, is an unusual lump of coal in investors' stockings, given that it would be the first interest-rate hike from the Fed in nearly a decade," CNBC reports. "Despite fresh geopolitical risk, softening economic data, both at home and abroad, and the continued decline in commodity prices, the Fed remains insistent that it is ready to go. If the Fed indicates it will raise once and then spend many months assessing the impact, Santa Claus will be coming to town. If, however, the Fed is prepared to launch a sustained series of hike, expect the Grinch, Scrooge, and the Ghost of Christmas Future to descend on Wall Street and spoil an otherwise festive mood."

Sure, I get it. There are plenty of reasons to lock eyes with the Fed right now. But even if we were certain a rate hike is going to happen 15 days from now, it's impossible to know how markets will react to the news…

In the meantime, the media will continue to slam your senses with a barrage of rate-hike noise. They'll tell you it's time to sell everything and head for the hills. The next day, they'll beg you to back up the truck and buy stocks with both hands.

Are either of these the best course of action right now?

Probably not...

Look, you already know we aren't exactly riding a rocket-ship bull market these days. Heck, 60% of U.S. stocks are stuck below their 200-day moving averages. While some big names have been huge winners this year, the average stock continues to gasp for air. The market is pumping out plenty of negative vibes after taunting traders with failed breakout after failed breakout.

As we head into the final weeks of the year, your job is to fight frustration. You must continue to ignore your emotions and instead use your trading tools to guide your actions—not some group of screaming pundits on CNBC. Ignore them and you'll make far more money in the markets than most…

Sincerely,

Greg Guenthner

[Ed. Note: Send your feedback here: rude@agorafinancial.com -- and follow me on Twitter: @GregGuenthner]


Why You Should NEVER Help a Stranded Motorist…

Why you should NEVER stop at a red light… And why you should NEVER use gold coins in public…

Click here to discover why these three things (as well as over 330 other tips, secrets and techniques) can keep you and your family safe during a financial crisis.


Rude Numbers

When to Buy... When to Sell
$41.73

buys a barrel of crude today. Oil remains stuck in the low 40's as we enter a brand new trading month...

$2.06

is the price of copper today. Dr. Copper has gotten volatile over the past couple of weeks as it sinks close to multi-year lows...

$1,066

is where you'll find gold futures this morning. The yellow metal is trying to hold tight above yesterday's lows...

$14.16

is where you'll find silver futures today. The poor man's precious metal is perking up this morning. It's up about a half a percent in early trading...

2,087

marks the spot for S&P futures before the morning bell. Stocks are set to open solidly in the green today...


Ignore At Your Own Peril

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