Good morning:
As I’ve said repeatedly, the market is not the economy…
And the economy is not the market. It’s now been nearly a month since the S&P 500 bounced off the 4,850 level… back when President Trump paused Liberation Day and said it was a “Great Time to Buy.” That same day, corporate insiders bought at their strongest level in months… and momentum returned to the market a few weeks later…
Now, we’re hovering near 5,600 - at the bottom of a range I believe we’ll see for a little while. All the while, retail investors are still hanging out - wondering what comes next.
See the SOMA line? That’s a $20 billion coordinated support to the markets…
They aren’t officially calling it Quantitative Easing…
But… it aims to have QE-like outcomes. And that’s what matters most.
Meanwhile, as I’ve noted, capital has returned to the U.S. from abroad after the steep selloff in March. And markets are experiencing euphoria everywhere as the Global Monetary Base (M2 and global capital levels) pushes to new all-time highs.
It may defy logic when GDP is flat… and there are still worries around inflation.
But again… this is a market less grounded in the economy than you’d think…
You don’t want to be back in the market trading when we’re back at 6,000.
You want to get active with the S&P 500 firmly above both its 20-day and 50-day moving averages. We’ll look for continued momentum support… and to take advantage of what the market is giving us…
Join me at 8:45 ET when I discuss what’s happening in these markets… and what to consider when taking a more long-term approach to your investments.
And if you caught yesterday’s segment on Tony’s one-level setup — you’ll want to see what’s coming next.
Today, I’ll discuss two important market experts and what they bring to the table in terms of helping us make money over the long term.
But first…
Tune In, Tune Up
Your momentum in this market is very strong - despite yesterday’s dip. We now have a two-day meeting by the Federal Reserve. Yes, we’re a bit cautious of what Jerome Powell has to say - and we could see a very strong overreaction one way or the other tomorrow. I’ll walk you through the trade for 2:35 on Wednesday…
And what we expect to hear from Mr. Powell.
Taking the Long Term Approach…
As I noted, Warren Buffett announced his plans to retire at the end of the year.
Oddly, Berkshire Hathaway (BRK.B) stock dropped 5% yesterday. All that did was present a buying opportunity. Today I’ll talk about Buffett… what he built… what he got wrong… and what he got right. More important, I’ll lay out the case for why you don’t want to just own Berkshire… you want to copy their approach.
Then… we’ll discuss another investing strategy from one of my favorite money managers. This guy uses every single crisis to his advantage to take advantage of one of the best value opportunities in markets. But you have to tune in today…
Want access to the slides? Want the names of the best momentum stocks today?
Want to see a guy not crack under pressure on live morning shows?
Just click the link, enter a name into the box, and hit Enter. You’ll see the chat, and my face… If there’s a streaming issue, just turn down the stream in the bottom right corner (volume on the bottom left).
Garrett Baldwin
P.S. That one simple trade Tony showed off yesterday? He’s walking through it in full today. Make sure it’s on your calendar—Click here so you don’t miss it.