I think this U.S. Dollar selloff has been SO dramatic, that it's accelerated this rotation into international stocks to the point where U.S. stocks, particularly the Large-cap Growth areas, are being used as a source of funds for this rotation.
It's not so much that the stock market wants a higher dollar or lower dollar, higher rates or lower rates. It really comes down to the rate of acceleration. In other words, how fast are these assets moving?
When Bonds and Forex markets are moving violently, that spills into equity markets.
Think about it. The bond market is $130 Trillion. The Forex Markets are valued in the Quadrillions. I don't even know how many zeroes and commas are in a Quadrillion. That's how big these markets are.
The U.S. stock market is a tiny little $55 Trillion, a fraction of the others.
So expect stocks to be bullied by those bigger markets. Not just now, but always. This is especially the case when they're moving faster than normal.
And that's exactly what I believe has been happening. To a certain extent, the Dollar getting destroyed, has cause this rotation to happen much faster, and so some of these big U.S. stocks are being used as a source of funds.
That's what I've been thinking about anyway.
Thinking is underrated.
If you have a job that involves thinking, then you should probably spend, at least part of, your day thinking.
And so, as someone who needs to make important decisions every day, I try to spend a lot of time walking, running, and simultaneously thinking.
This is what I'm thinking about.
I don't know what the market is going to do next. It can rip higher to Dow 50,000, S&P 7000 and Nasdaq Composite to 25,000.
That can definitely happen.
Some of this selling in the U.S. can also expand, and the new lows lists start to get longer.
We can enter into a bear market, and maybe even that recession they've been promising us all these years.
Who knows?
I laid out my base case this week and what I think is happening moving forward. You can check that out here and what we're doing about it.
And we like to joke around and have fun with it on the blog, on our Morning show, and on Social Media.
But on a serious note - it's so important to understand that we don't actually know what the market is going to do next.
The good news, however, is that no one else does either. Not Warren Buffett, not David Tepper, not Jose Canseco. And certainly not me.
But despite all of that, our efforts are obviously working.
We designed Breakout Multiplier to take all of the research we provide at Allstarcharts, and put on trades with a very specific intent of multiplying the returns on these opportunities.
More than half the trades we put on over the past 6 months have at least doubled in value.
I've been doing this for over 2 decades. I've met with more traders and investors over the years than almost anyone else on the planet.
I can assure you, from the bottom of my heart, I have never seen a system like Breakout Multiplier be this good, this consistent, and with a process that is this repeatable.
On Friday alone, we had 2 trades double.
Just in recent months, we've had a trade that gave us a 20x return and a trade with a 50x return.
This is real money!
And Members of Breakout Multiplier are notified in REAL TIME whenever there is a new opportunity like this.
Click here to get the next one and review the recent trades that are currently still a go.
Don't miss the next double!
See you in there.
JC
