Did you notice that the journalists are catching on to these trends that have been in place for so long?
And not just any journalists. The most reliable contrarian indicators in the history of financial publications are telling you that the U.S. is the Envy of the World and they expect it to keep going - even after a decade and a half of this...
Here's the exact quote:
"The American economy has left other rich countries in the dust. Expect that to continue" - The Economist
So cringe.
Those of you who have been following along know how much money we've all made by using this publication as a contrarian indicator.
Not only are they journalists - which are a great fade to begin with.
But they are journalists parading around as economists.
Double whammy.
We've discussed this at length over the years. Here's an example. And here's another one. But there are plenty more.
Here's how timely this current magazine cover is.
We're looking at U.S. stocks compared to Developed Markets, as represented by $EFA. And we're looking at U.S. stocks compared to Emerging Markets, as represented by $EEM.
Here's how this works.
The journalists catch on to a trend that is obviously not a new trend.
Journalists are not traders. They are not investors. They don't know the things we know. They don't see the world the way we do.
But they are the best in the business at understanding what traders and the investing community are thinking about and discussing the most, particularly when it is at consensus.
And that's why we love them.
So think about it like this. By the time a trend becomes consensus, and then by the time the journalists come to this realization, it's probably not early in the cycle.
Then the journalist needs to write their article, and in many cases they have to put together a team and a plan in order to execute on this article.
They have to submit the art work for the magazine cover.
The articles and cover approvals are next and it doesn't happen overnight, as you can imagine.
By the time this all goes to actual print and hits the wires, do you think it's probably early in the cycle? Or do you think that cycle is probably over?
We've seen the economist pick so many key tops and bottoms over the years, in so many different assets, that it's almost like they have information from the future.
They're that good.
So are you going to bet that they don't nail this one?
Are you betting that the U.S. continues to dominate on all fronts as it has over the past 15 years or so?
We'll be discussing it all on tonight's LIVE Conference Call for Premium Members of ASC Research.
A few days ago Kenny Glick saw that $CLOV was stuck below its long-term VWAP, wallowing in the muck, struggling to come out the other side.
Then he looked at the short-term chart and saw the setup that turned into a 28% winner in a matter of minutes.
“You do not want to short Andy Dufresne,” is how Kenny explains it, comparing CLOV to the main character in “The Shawshank Redemption.”
He saw the same “Andy Dufresne Pattern” in $CVNA at $7.50. The stock is over $190 today.
Kenny’s been at this for 30 years. He’s probably the No. 1 pattern-recognition trader in the universe. And, yeah, he’s known in some parts as the “Grandfather of Day-Trading.”
He’s experienced the evolution from fractions to decimals and the proliferation of high-frequency trading.
And he’s developed a simple system that traders like you and me can use in our own processes.
Look at this chart of CLOV. Look how beaten down and abandoned this thing was (like Andy). But once it busted out, it's blue skies ahead. Sound familiar?
When you know where to look, and you know what you’re looking for, these patterns show up, every day.
The market is like a bucking bronco: It’s trying to throw you off before you make money. So when you see that pattern, you gotta hold on for that ride to glory and freedom.
