Stocks Are About to Jump Double Digits

Stocks have fallen across the board, from the technology sector to transportation stocks. Today, market breadth is at one of the lowest levels in years. But that could change soon... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [DailyWealth] Stocks Are About to Jump Double Digits By Chris Igou, analyst, True Wealth --------------------------------------------------------------- The pullback has gone from narrow to widespread... Stocks have fallen across the board. Everything from the technology sector to transportation stocks has dipped recently. You can see this by looking at "market breadth." That's a way of gauging when lots of stocks are doing well, not just a few. It can also show when a downturn is widespread. Today, market breadth is at one of the lowest levels in years. But that could change soon. You see, today's breadth readings are at a crucial level. And while the market seems risky, this means the S&P 500 Index is actually poised for a 13% rally from here. Let me explain... --------------------------------------------------------------- Recommended Links: [Mining Legend: 'Gold Could Go to $10,000/oz']( Pierre Lassonde, founder of Franco-Nevada, recently laid out the case for $10,000 gold. That's why one of the world's foremost gold experts is pounding the table on a small handful of the best, highest-upside gold stocks he says you should target today. See how you can [stake a claim in what could be the biggest bull run for gold – ever](. --------------------------------------------------------------- [A Massive Wave of Bankruptcies Is Coming]( It's actually much bigger and more important than what happens to the Nasdaq or S&P 500. Some of the world's best investors are practically drooling in anticipation because this crash will create a slew of 100%-plus opportunities... backed by legal protections that stocks can only dream of. A top analyst believes this could happen within months – and you must prepare now. [Get the full story here](. --------------------------------------------------------------- It seems like a bad time to bet on a market rally. Sure, prices ended last week slightly higher. But all of the problems that drove stocks lower to begin with are still around. That's what we see on the surface. But if you dig a little deeper, the opportunity becomes clearer. Specifically, we're looking at the McClellan Summation Index... This index tracks a basket of U.S. stocks. Each day, it subtracts the number of stocks moving lower from the number of stocks moving higher. If more stocks are up than down that day, the index ticks upward. But when the majority of stocks are dropping, the index falls. Normally, we want this index to be moving higher. That indicates a broad market rally is underway. But an extremely low level is worth noting, too... That's because nothing falls forever. Eventually, a few more stocks will go up than down. If you can peg when that's likely to happen, you can make money in stocks. The McClellan Summation Index could be getting to that point today. Take a look... Market breadth is at its lowest level in two years. You can also see that today's reading is extremely low relative to history. Recently, the McClellan Summation Index dropped below a reading of negative 1,500. To see what that means for stocks, I looked at what the S&P 500 has returned after this indicator has fallen below that level in the past. While only 10 other cases like this have happened since 2000, the results are impressive. Check it out... Buying the S&P 500 when market breadth is this low has led to major outperformance... more than double a simple buy-and-hold strategy. Previous setups led to 7% gains in six months and a 13% gain over the next year. This means that the recent drawdown could be ending. And if it does, big upside will likely follow. In short, history shows this is a promising trade setup. Prices are already starting to rise a bit as well. And if this pattern bears out, we've likely only seen the start of a larger rally. Good investing, Chris Igou Further Reading "The market is a lot like a rubber band," Chris writes. "When it's pulled too far in one direction, it'll snap back." And right now, this well-known company's stock could be poised for a major rally... Read more here: [A Double-Digit Setup for This Industrial Stock](. Investors are scared of the market today. With everything that's happening in the world, no one knows when the volatility will end. But history tells us that fear could point to further gains ahead... Learn more here: [Stocks Are Becoming a Contrarian's Dream](. INSIDE TODAY'S DailyWealth Premium Go long on stocks with this cloud-storage king... The drawdown in stocks could be ending. That makes it a great time to own U.S. equities. And one tech company is a fantastic opportunity right now... [Click here to get immediate access](. Market Notes AMERICA'S NEED FOR HEALTH CARE IS A TAILWIND FOR THIS STOCK Today, we're taking a look at the long-term trend in health care... Longtime readers know our colleague Dr. David Eifrig is bullish on health care stocks. As the Baby Boomer generation gets older, they'll need more prescriptions and medicines... which is a huge tailwind for the sector. And today's company is providing seniors with the treatments they need... [Eli Lilly (LLY)]( is a $280 billion pharmaceutical giant. It develops and produces a range of essential medications, from diabetes treatments to cancer drugs. More than 47 million people count on these meds and therapies each year. So as the population keeps aging, this demand shouldn't slow down anytime soon. That's exactly what Eli Lilly saw in 2021... The company's full-year revenue increased 15% year over year to $28 billion. As you can see, LLY shares have surged higher. The stock is up almost 140% over the past two years. As Americans age, shares of this health care giant should continue to rise... --------------------------------------------------------------- [Tell us what you think of this content]( [We value our subscribers’ feedback. To help us improve your experience, we’d like to ask you a couple brief questions.]( [Click here to rate this e-mail]( You have received this e-mail as part of your subscription to DailyWealth. If you no longer want to receive e-mails from DailyWealth [click here](. Published by Stansberry Research. You’re receiving this e-mail at {EMAIL}. Stansberry Research welcomes comments or suggestions at feedback@stansberryresearch.com. This address is for feedback only. For questions about your account or to speak with customer service, call 888-261-2693 (U.S.) or 443-839-0986 (international) Monday-Friday, 9 a.m.-5 p.m. Eastern time. 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