Pre-Market Prep: Halloween in July as AI, Fear, and Zombies Surge

Plus: Our Top Energy Pick Today [Money Morning LIVE] Dow Jones | 34,288 | S&P 500 | 4,446.82 | Nasdaq | 15,203.78 | *prices as of 4:00 pm 7/07/23 --------------------------------------------------------------- Thursday, July 06, 2023 Fear on the Rise --------------------------------------------------------------- All assets move in waves... even intangible ones. At the end of May, when the CBOE Volatility Index (VIX) was trading above 20, I made a [bold claim](... I laid out that by the time July rolled around, the market's fear gauge would tumble to 12. A decline of 40%. But then we'd see it surge from there to the start of November. Well, wouldn't you know, just as Americans were prepping for the Fourth of July holiday weekend, the VIX fell to its lowest level in over a year to 12.73. And it's since started to chug higher. Now, the first half of the year closed on a high note. The Nasdaq clocked in a performance not seen since [1983](. But it's the back nine of the year in question. And we have a very short week with some very big announcements. We had Federal Open Market Committee (FOMC) minutes yesterday... We have ADP employment numbers less than an hour away... U.S. trade deficit and job openings following that... And then nonfarm payrolls a little more than 24 hours from now (we'll discuss what to expect below). All of this happens to coincide with markets entering their most volatile stretch of the year - July through October. But don't fret. We're here to lend a helping hand and provide keys to profits, even during the most turbulent of times... --------------------------------------------------------------- Follow the Money Garrett {NAME} --------------------------------------------------------------- Insider buying has cooled. Valuations are stretched again in this market... There was a sizable energy purchase last week by CEO and President of ONEOK (OKE), Pierce Norton. He snatched up $1.5 million in shares following the expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 in connection with ONEOK's pending acquisition of Magellan. Besides that insider vote of confidence, I think this is also an attractive stock sporting a 6.1% dividend yield. --------------------------------------------------------------- Across Money Morning --------------------------------------------------------------- Don't Touch This AI Stock with a 10-Foot Pole... We've been watching the enthusiasm around artificial intelligence (AI) drive this bull run. And our readers have pocketed gains from some of our experts' dynamite AI recommendations. But in any extremely hyped market, knowing [the right stocks to avoid or even sell]( is just as important as knowing which stocks to buy. Fortunately, technology investing expert Alex Kagin reveals the one AI stock he refuses to touch. [Scratch this ticker off your buy list NOW...]( Why Inflation Will Get Worse Before It Gets Better (If It Ever Does)... They got it wrong... They claimed inflation was "transitory." They cited "supply chain issues" as the culprit. They said anything but the truth: that [America's money supply]( experienced three years' worth of growth in just 90 days. That's what caused prices to spiral out of control. Now these same leaders are claiming victory over inflation, but [investors need to be ready - this isn't over...]( An "AI Correction" Is Coming, But Don't Worry... Nvidia and Alphabet have experienced runaway gains thanks to the jaw dropping upside of AI. It's true, [that potential is immense](... but investors have over reached. They're "hype-buying" stocks that have no place in the AI market. But lIke all bubbles, this one will burst... and soon. In the long-run, the end of this mania is great for equities - even in the AI sector itself. [Here's why...](. This Stock Is Incredibly Boring... But It'll Pack on Double-Digit Gains This Year... The Arctic doesn't usually get a lot of attention - it's mostly empty, after all. But in a world increasingly hungry for resources, the nations surrounding the frozen north are casting envious eyes at the immense riches, [worth trillions of dollars]( locked under thawing ice. One American company plays a pivotal role in the region because its ships can go where others simply can't. [Garrett {NAME} is forecasting massive gains for its stock...]( The Scariest Asset Around Is Threatening a Zombie Apocalypse... July is a bit early to start talking Halloween... But unfortunately, this is anything but a treat for those involved. In 2023, commercial real estate has plunged 30%. In the post-pandemic world, that shouldn't come as a huge surprise. However, the fallout of this worsening reality stretches farther than many realize. The market's steepest decline in an otherwise positive year was in March, following the regional banking disaster. And there isn't a sector more exposed to the woes of commercial real estate than regional banks. And we're about to find out what happens when [$1.5-trillion worth of loans come due at the end of 2025](. Luckily, you still have time to profit from what some are calling a slow-motion train crash. And the big trades are setting up right now... --------------------------------------------------------------- Chart of the Day: Shifting Sentiment on Jobs --------------------------------------------------------------- Once... That's how many times nonfarm payrolls have come in below expectations over the last 11 months. This is one of the pivotal figures for investors to watch and digest during the Fed's current rate-hike cycle. But despite the stronger than anticipated gains, going back to January 2022, the market reaction has largely been negative when it comes to jobs day. That's because we've been in a "good news is bad news" environment. Fortunately, the mood has started to shift in recent months with the SPDR S&P 500 ETF (SPY) ending higher on five of the last eight reports. Tomorrow morning before the opening bell, we’ll get the jobs data for June. Expectations are for a gain of 240,000. But regardless, the wind has been at our backs for much of 2023 on this release. So, no fear here. Get More Money Morning Our experts offer special actionable investing and trading research to their subscribers every week You are receiving this e-mail at {EMAIL}, as part of your subscription to Money Morning LIVE. To remove your email from this list: [unsubscribe here](. Please do not reply to this email as this address is not monitored. 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