A Note From Tom Gentile: Money Morning’s #1 Shah Gilani and I have always agreed that no one should ever feel the constant stress and sleepless nights caused by living in financial distress.
Today, I’m sharing an essay from Shah where he explains why he’s saying “no” to stocks… and the new ground-breaking strategy he’s sharing that doesn’t involve a single stock or stock option.
This expert insight from Shah Gilani originally ran in Wall Street Insights & Indictments on May 7, 2018.
Last week, I dropped nothing short of a truth bomb on you when I told you that I was done with stocks. And this is coming from Money Morning’s #1 Stock Analyst.
But today, I’m going to do something different for a moment.
I’m going to tell you exactly why I’m done with stocks – and why you should wash your hands of them…
I’ll give you an example of the “unpredictability” that I’m sick and tired of (I’m sure you are, too)…
I’ll even give you my one-stop solution to this mess.
So let’s get started.
Here’s What Really Drove Me Away from Stocks
If you know me, you know that I will do ANYTHING to make money. I make no apologies for my behavior. I’m not trying to make friends; I’m trying to make money.
I didn’t reach the top 1% by being Mr. Nice Guy.
And part of that is delivering truths that not everyone wants to hear – but they know I’m right.
The stock market’s a mess; how many lives, bank accounts, IRAs, 401(k)s, and so on and so on are ruined by the violent swings of the stock market?
The stress, the sleepless nights, the constant wondering if you’re going to be able to retire when you want… That’s all part of the stock game. Sure, you could make it big – if you have thousands of dollars to spare, if you can afford to be glued to your computer day in and day out, if you know every trick in the book that even the biggest and best investors know… Then maybe you’ll make it big.
But we all that more often than not, the little guys are left in the dust, scrambling to pick up the pieces while Wall Street laughs.
It sickens me just to think about it.
But, as I mentioned earlier, I have a solution. And I’m going to help you make bank the easiest and most profitable way possible. Trust me – this method took about a decade to perfect, and only now, it’s ready to be released to those who are ready to cut the crap and learn how to make serious cash.
This isn’t the typical single stocks or options that you’re used to hearing everyone talk about – those are the old days and take too long for my preference. My proprietary strategy only takes about 30 seconds to set up, and can bring in the profits within the week. Can you tell I’m proud? Click here to learn more.
BHP Breakdown
A perfect example of the inconsistency of the market is BHP Billiton Ltd. (NYSE:BHP).
BHP is up almost 30% over the past 52 weeks, while the S&P 500’s only up 11.7%. It’s certainly ahead of the market, that’s for sure.
The stock had a nice run up to its highs of $50.79 in January, and then dropped surprisingly quickly to $44. While that was an ugly move for such a giant company, the stock rallied back up towards $50, but couldn’t take out its highs. It then fell back to near $43, making a new low against the old from its long uptrend.
Then the stock rallied again. This time it only got to the $48 to nearly $49 range, but couldn’t get above it.
And recently, the stock slipped again. The pattern is lower highs and lower lows. If BHP falls through its support, it’s going to $40. And I think if there’s any fluttering in commodities markets, we’ll see BHP and other miners come down.
Can you imagine the stress of BHP’s stockholders? They’re probably checking their brokerage accounts 500 times a day, wondering if they’ll be able to buy their kids birthday presents this year.
That’s the deplorable stock market behavior I’m talking about.
BHP has had a nice 12% run-up with oil markets lately, but oil hasn’t actually broken out. It needs to get above $70 and stay there for it to be a breakout. If oil falters and slips back below the range of $64 to $65, traders will start unloading long positions and oil could scare other commodity traders into selling off other positions – all of which would bear heavily on BHP.
As you can see, BHP’s overshot all of their short-term moving averages (10, 20, 30, 50) and their Bollinger Bands.
Besides, only about 15% of BHP’s revenue is attributable to oil – so at best, oil’s recent 10% pop should have added not much more than $0.70 to BHP. Nevertheless, it added more than that, mostly in “sympathy” with the bullish oil move.
However, most of BHP’s revenue comes from mining – 35% from iron ore, 30% from copper, 20% from metallurgical (“met”) coal, and so on… Iron ore is declining, copper is going nowhere, met coal is breaking down, and steel is beginning to show cracks in its armor.
Trading volume was declining on BHP stock, and the market was bearish on the leading up to the oil-driven run.
BHP’s run-up was also aided and abetted by bears covering their short trades. That bullish gunpowder is now mostly depleted.
I’m tired of it. They’re just not doing it for me anymore. I’ve found a MUCH better way for you to acquire wealth and it’s going to leave you speechless.
And, for the record, I don’t hate stocks. I’ve been chasing after stocks for 36 years, and I’ve made a killing by playing stocks six ways till Sunday, primarily using options.
The time has come, there is a new era in easy money – and I couldn’t be more excited to share it. In fact, it just debuted live for the first time ever last week.
We are running a special rebroadcast for Power Profit Trade readers – what I have in store for you is a quantum leap forward in the world of finance and mathematics.
Your front row pass awaits – check it out here.
Sincerely,
Shah
