The Data Point I Use to See the Market's Next Move

Editor's note: Our friend Andrew Zatlin's approach to the markets is unlike anything we've ever seen before. After spending more than a decade working for Cisco Systems in Silicon Valley, he launched his own publishing firm, Moneyball Economics, where he uses his pedigree as a top-ranked macro economist to forecast the market's every move. In […] Not rendering correctly? View this e-mail as a web page [here](. [Empire Financial Daily] Editor's note: Our friend Andrew Zatlin's approach to the markets is unlike anything we've ever seen before. After spending more than a decade working for Cisco Systems in Silicon Valley, he launched his own publishing firm, Moneyball Economics, where he uses his pedigree as a top-ranked macro economist to forecast the market's every move. In today's essay, he shares one of his "secrets" to seeing where stocks are headed next... --------------------------------------------------------------- The Data Point I Use to See the Market's Next Move By Andrew Zatlin --------------------------------------------------------------- [What price will TSLA, NVDA, and AAPL be in a month?]( During a recent special event, we launched our breakthrough, new AI algorithm called An-E... and showed many of its past predictions and just how accurate they were (often precise to within a tenth of a percent). Well, during the event we also showed what An-E's predictions were for three of the most widely held stocks on the market one-month into the future. [You can see what those predictions are by going here](. --------------------------------------------------------------- Earnings season is underway, and at first blush, everything looks bullish... - The banking crisis has been resolved. - The economy seems strong. - And inflation is easing. Time to celebrate, right? Not so fast... We're being set up for that classic "Charlie Brown races for the football, only to have it pulled away by Lucy" moment. Here's what I mean... Traditionally, the markets sag in May. May marks the end of earnings season, and a lot of traders start taking vacations. Hence, the popular phrase, "Sell in May and go away." This year, though, there's an extra reason to be bearish: interest rate hikes. When rates go up, that's bad news for the stock market. (Rising rates make it more expensive for companies to borrow, and therefore grow and invest in their business, which weighs on their share prices.) But there's a twist this time around... You see, the mainstream media says that the U.S. economy is strong and stable, hence the reason for optimism. But as usual, the mainstream media has it wrong. In fact, the economy is weakening. The second quarter is shaping up to be a rough one... And Lucy is about ready to pull away the football once again. The thing is, this false promise in the market presents us with a unique opportunity. I'll talk more about that in a moment. --------------------------------------------------------------- Recommended Link: ['Whitney sent me a strange text message...']( A few weeks ago, Empire editor in chief Sam Latter received a mysterious text message... This text message revealed a "Whisper Trade" that paid off with 50% gains in only eight days. That's an annualized return of 2,281% – more than most investors will make in their entire life... To get the full story about this text message, and how anyone could use these "whispers" to make gains of 10 times (or more)... [click here now](. --------------------------------------------------------------- But first, let me explain why so many analysts are wrong... It all centers around semiconductor activity. You see, hardly anyone appreciates the power that semiconductors have when forecasting our economy. Semiconductors are ubiquitous these days – they're everywhere. They're the steel and oil of the digital era. Everything either has a semiconductor in it or was made by something that has a semiconductor in it... And I mean everything, from singing greeting cards to your refrigerator. The thing about these conductors is that their production process takes about six months: It takes half a year to go from raw silicone to a chip that's embedded into a car or television. So by looking at semiconductor activity, we can get six months of forward visibility. In other words, today's semiconductor activity equals tomorrow's economic activity... In fact, if we take semiconductor wafer activity and layer it against America's gross domestic product ("GDP"), you'll see it correlates closely: Keep in mind that this semiconductor activity is lagged. So in reality, this is a great barometer of future GDP. Right now, semiconductor activity suggests that the economy is weakening rapidly... Wafer shipments have collapsed to levels not seen since 2020. And as you can see below, sales of two of the world's largest semiconductor manufacturers – Taiwan Semiconductor Manufacturing (TSM) and United Microelectronics (UMC) – have collapsed: Most analysts will tell you that everything is fine... What I'm forecasting is the typical slowdown this month, followed by a mid-summer rally. And when it comes to rates, any rate cut by the Fed would send the stock market soaring. That's the event we want to get positioned for. Over the next few months, identify stocks you want in your portfolio, and then sit back as they fall while the market comes to grips with this economic data. That'll present the perfect opportunity to buy them at a discount and get in ahead of the market's rally later this summer. Regards, Andrew Zatlin May 3, 2023 Editor's note: Andrew believes a national currency "reset" is coming to America that will affect everything from your day-to-day expenses to your paycheck and of course, your portfolio. To learn how to prepare yourself for this monumental shift, be sure to [watch his brand-new, controversial presentation right here](. --------------------------------------------------------------- If someone forwarded you this e-mail and you would like to be added to the Empire Financial Daily e-mail list to receive e-mails like this every weekday, simply [sign up here](. © 2023 Empire Financial Research. All rights reserved. Any reproduction, copying, or redistribution, in whole or in part, is prohibited without written permission from Empire Financial Research, 1125 N. Charles Street, Baltimore, Maryland 21201 [www.empirefinancialresearch.com.]( You received this e-mail because you are subscribed to Empire Financial Daily. [Unsubscribe from all future e-mails](