The First Green Shoots of Spring Trading
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| GREG GUENTHNER |
Hi Reader,
It’s been a tough stretch for stocks lately.
Last week, the three major indexes all fell below their 200-day moving averages.
The kind of technical breakdown usually gets investors on edge. But history suggests it’s not necessarily a bearish setup in the long term.
After long streaks above the 200-day moving average are broken, stocks move higher about 70% of the time with a median 12-month gain of around 9%.
In other words, this recent weakness could be setting the stage for something bigger. And that next stage could begin sooner than you think.
April has historically been one of the strongest months of the year for stocks. So we could be heading into a more favorable window after this rough stretch.
The market may already be hinting at that shift. Stocks kicked off this week strong, and now we’re waiting to see if this move may have legs.
On today’s Top Trades Live, I’m joined by Nick Riso to break it all down.
We’ll cover what April seasonality could mean for stocks…
How to think about the key technical breakdown…
And whether this bounce might be the start of something more sustained.
You can tune into our conversation at 11:00 Eastern using the link below.
Click here to join Top Trades Live
And one more thing…
Our Top Trader Challenge kicks off today at noon Eastern, what we’re calling “Ticker Tuesday.”
That’s when you’ll be able to submit your best stock pick for April.
On today’s Top Trades Live, we’ll walk through how we’re approaching the challenge ourselves… and what we’re looking for in a winning stock.
See you on the inside — and don’t forget to submit your ticker starting at noon!
Happy trading,
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