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REVEALED: The Year’s Most Powerful Trend, Part 1

Do ya feel lucky, punk? Well… do ya?

Dirty Harry said it first. But famed market technician Walter Murphy poses the same question to investors looking for a big year in the stock market.

Well, I’ll tell you right now – a lot of investors ARE feeling lucky these days. The Dow is on a 6-year winning streak, Murphy reminds us. That’s the second longest in its 119-year history.

And until yesterday, when falling oil prices dragged stocks down again, the S&P 500 hasn’t had a 4-day losing streak in 264 trading days. That was the longest streak in 87 years. 87 years!

And all this good news brings us to one of the most powerful trends shaping up this year…

Yesterday, I promised I would reveal a major long-term trade for you—a moneymaking wave so powerful you could hop on your board and ride it for massive gains through the end of the year.

When I first identified it in November, I said you could double your money on it. And today, I’m so convinced about this trade I’m adding it to the “trade of the year” list I told you about yesterday. (Only four trades made the final cut. Don’t worry– you’ll learn about every single one of them before the week is up.)

Best of all, you can make money on this trade no matter what the market does this year. I’ll explain why that is in a minute…

OK, so what is this massive trend that can make you a bundle this year?

The return of the herd…

Ah, yes, I’m talking about the return of the mom and pop investor. You know, those shellshocked weekend market warriors who’ve sat on their hands for the past six years. The ones who vowed they’d never touch another stock after 2008.

Here’s the deal: those memories are fading. Things are looking up for Joe and Jane Consumer these days. Plus, they’re tired of missing out on this massive run in the stock market, watching others get rich. And that means they want back in the game…

Know what that means?

It means they’re going to be opening brokerage accounts. They’re going to pay commissions. And the discount brokers that were given up for dead in 2009 are going to be one of the best performing sectors on the market this year, as all that new investor money floods in.

Of course, these Johnny-come-latelys are probably going to get burned. If there’s one thing (and only one thing) we can count on, it’s that the stock market is going do whatever screws over a majority of investors out there. That’s just basic math.

But listen, you won’t be profiting from someone else’s misfortune. As I said in November, what you’ll be doing is completely ethical. You’re simply betting that the beaten-down discount brokerage firms will finally start raking in that sweet commission cash when the newbies start placing bets on the market. It’s not like you’re hoping anyone loses money.

Here are the details…

  •  Three major discount brokerage firms— TD Ameritrade, E*Trade, and Charles Schwab— are showing that mom and pop investors started jumping back into the stock market in September and October, according to TheStreet. Daily average trades jumped more than 8% in September—and nearly 18% in October, compared to last year.
  •  Trading volume has steadily increased for months. And over the next few quarters, we should see some real traction in this sector. And…
  •  Discount brokerage stocks never recovered with the market after stocks bottomed out in 2009. Even factoring in its recent rise, E*Trade stock has lost more than 90% of its value over the past eight years.


Let’s talk risk for a minute…

Maybe you think this streaking market has met its match. Maybe you’re right. After all, we are staring a very mature bull right in the face. Perhaps this is the year that investors send it to the slaughterhouse? I just don’t know. Frankly, I don’t give a damn. Why not? Because I don’t think a correction will send this market spiraling out of control—even if it feels like it at first.

Let me explain…

We’ve had our decade of crisis. The 2008 market catastrophe and the recession that followed just happened to be the second-worst beating our little economy has taken in the past hundred years. This market’s resilient. So until we’re proven otherwise, any market downdraft is setting up a buying opportunity for traders with the guts to make a move.

That’s why I said you could make money riding this trend, no matter what the market does this year.


Greg Guenthner
for The Daily Reckoning

P.S. Best of all, you can make money on this trade no matter what the market does this year. If you want to cash in on the biggest profits the market has to offer, sign up for my Rude Awakening e-letter, for FREE, right here. Stop missing out. Click here now to sign up for FREE.

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Greg Guenthner

Greg Guenthner, CMT, is the editor of Opening Bell Fortunes and Seven Figure Signals. He has been with Agora Financial/Seven Figure Publishing since 2005. In 2019, the average position in Greg’s Sunrise Fortunes portfolio outperformed the S&P 500 by 1.65x.

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