Inflation came in hot yesterday, but not as hot as expected. And the markets took that as a sign all is well and it’s time to go all-in again.
Stocks that had fallen the most were getting pushed the highest as investors piled cash into most beaten-down names: technology stocks.
Those stocks were soaring yesterday and Amazon was not left out of the party.
Shares were up over 13% on the day as I was writing this yesterday afternoon.
Founder and executive director Jeff Bezos saw his net worth jump by $11.4 BILLION in the few hours between when the markets opened and when everyone took a break for lunch.
Talk about a pretty good morning, huh?
It appears the market thinks the worst is over, inflation has not only peaked but is falling, and the Fed is ready to pivot and stop hiking rates (or at least stop hiking them so quickly).
After all those layoffs across the technology space, companies are running much leaner and could have better margins.
And analysts are predicting a strong holiday shopping season.
That bodes incredibly well for Amazon, as it laid off a lot of staff and is very much involved in our holiday expenses.
But I’m not ready to believe that all is good and the worst is over.
Markets tanked earlier this week as it came to light that decentralized cryptocurrencies and the exchanges they trade on aren’t actually that decentralized at all.
Many companies in the space are invested in each other and store assets with each other.
And when news broke that the second biggest exchange in the world was effectively insolvent, investors found out pretty quickly just how connected these companies all are.
I don’t think one decent CPI print cancels out the contagion that the FTX bankruptcy will cause.
I think there was a lot more leverage out there in the market than people are letting on.
And I’m willing to bet there will be more margin calls and more forced selling.
A Big Old Pile of Bull… Trap
There are a lot of interesting terms in finance. Margin calls and forced selling are two of them. Bull trap is another.
And that’s what I think we’re seeing right now in the stock market.
It’s what they call it when a stock — or any tradable asset — that’s been falling reverses direction and breaks out above a prior support level.
This often leads investors to buy into it thinking that the overall trend has reversed and the asset, market, or stock will keep going up.
They’re then “trapped” when buyers fail to keep buying and support the trend reversal.
And they start to generate losses on those new long positions when that move turns out to be short term and the prior downward trend resumes.
Bull traps tend to have lower-than-average volume and they always fool a few… well, fools, I guess.
That’s where I think we are now. The breakout we saw yesterday came on relatively low volume.
Yesterday, by midafternoon, only about 1.7 billion shares had moved. That’s a big spike on small volume.
And it’s a red flag that maybe this rally, like all the others we’ve seen this year, won’t last.
That’s why I’m not quite ready to jump on the “all’s well, nothing to see here” bandwagon just yet.
But, with that being said, I like to hedge my bets as best as I can to make sure I’m always winning (even if that just means I’m losing less than everyone else).
So I will be betting on Amazon’s resurgence with the rest of the market. But I won’t be doing it by purchasing Amazon’s stock.
I’m planning to hedge my bet that the worst is not behind us by staking a claim to a multibillion-dollar income stream.
It’s paid almost directly out of Amazon’s corporate bank account and only grows bigger as Amazon does too.
But no matter what happens in the next month, it’s guaranteed to make a multimillion-dollar payout in just a few short weeks. Join Wealth Daily today for FREE. We’ll keep you on top of all the hottest investment ideas before they hit Wall Street. Become a member today, and get our latest free report: “How to Make Your Fortune in Stocks”
It contains full details on why dividends are an amazing tool for growing your wealth.
Amazon Gains Without Amazon Pains
You see, a few years ago, I uncovered a secret income stream that only a small percentage of investors have ever heard of.
It practically comes directly from Amazon’s bank accounts, but it’s not going to Amazon’s shareholders.
It’s like a way of sharing in Amazon’s gains without risking heart-wrenching drops as Amazon’s shares shed value.
So it’s sort of a way to bet that the worst is over without risking losing a ton if the worst has only just begun.
You see, whether the worst is over and Amazon stock continues to soar…
Or the worst is only just beginning and shares have another 50% to fall…
This income stream will be paid out no matter what.
If the worst is over, it’ll probably pay out a little bigger; because every share of it will be worth more on the open market.
But if the worst isn’t over, it’ll still pay out billions to everyone who gets in on it now.
It’s a way to have that cake and eat it too.
It’s one of the best investments I’ve ever uncovered.
And the next payout is coming in just a few short weeks… GUARANTEED.
I don’t know about you, but I prefer guaranteed profits in a market like this.
I’d rather know that a check is coming my way than hope I’m not getting caught in a bull trap.
So if you feel that way too, you’ve got to get yourself on board and get a piece of this payout.
And you’ve got to do it before December 15 when the next payment gets calculated.
I’ve put all the details into an easy-to-view presentation and an easy-to-read report.
And I want to share it with you today so you can hedge your bets too and guarantee yourself some winnings to spend (maybe at Amazon) this holiday season.
So check it out and get yourself on the list ASAP to make sure you get the payout coming our way.
You can thank me after that big payment hits your account next month.
To your wealth, Jason Williams After graduating Cum Laude in finance
and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private
sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team
responsible for billions of dollars in daily trading. Jason left Wall Street to found his own
investment office and now shares the strategies he used and the network he built with you. Jason
is the founder of Main Street
Ventures, a pre-IPO investment newsletter; the founder of
Future Giants, a nano cap investing service; the editor of Alpha Profit Machine, an
algorithmic trading service designed specifically for retail
investors; and authors The Wealth Advisory income stock
newsletter. He is also the managing editor of Wealth
Daily. To learn more about Jason, click here.