Make the Most of This 'Half and Half' Market

A bad news, good news situation... Make the most of this 'half and half' market... Look at the divergences... Tech down, industrials up... A 'life cross'... What to do in this muddy market... From the man who called 'the top'... [Stansberry Research Logo] Delivering World-Class Financial Research Since 1999 [Stansberry Digest] A bad news, good news situation... Make the most of this 'half and half' market... Look at the divergences... Tech down, industrials up... A 'life cross'... What to do in this muddy market... [From the man who called 'the top'](... --------------------------------------------------------------- Let's not make things too complicated... As we embark on a new calendar year, we're seeing market behavior we haven't seen in a while... Remember those good old (market) days of the second half of 2020 and much of 2021? That was back when "Davey Day Trader" was right: Stocks could only go up. Consider the summer of 2021. The Federal Reserve was still pumping billions of new dollars into the economy and keeping rates low as the pandemic ground on. And more than 90% of the stocks that trade on the New York Stock Exchange were above their 200-day moving average (200-DMA), a simple technical measure of a long-term trend. Financial folks call this sort of statistic a measure of "market breadth." And aside from brief dips here and there, this show of strength in stocks lasted for about five months. As we suggested at the time, it was a sign of a top. And when stocks weakened from this peak in July 2021, it was definitely [an early warning sign for the stock markets](. Those days are gone now... Things deteriorated from there to where we are today. This is a "bad news, good news" situation. After a roughly 20% drawdown in the benchmark S&P 500 Index in 2022, that number has been cut in half. Today, instead of 90%-plus, only 46.5% of stocks on the New York Stock Exchange trade above their 200-DMAs. In other words, about half are now above their long-term trend... and about half are below. It's not the best drink, but not the worst... If we think of the markets as a cup of coffee, we see today what might be an hours-old pour, resting near room temperature, and filled with half-and-half. It won't kill you, but it's not a great or satisfying drink. The Fed is still raising rates, and legitimate concerns about a recession are hitting people's minds more than ever... But as I (Corey McLaughlin) will explain today, this doesn't mean you need to avoid the brew the market is serving altogether. On the contrary, if you can recognize what you are getting into and accept reality, you just might find some great opportunities to make outsized returns. We will explain, but the main point is this... While about half of the New York Stock Exchange's roughly 3,000 stocks might be in a bullish trend and another half are in a bearish one, today's market isn't totally undecipherable, either. You don't need to let this "half and half" market freeze you. 'Divergences' are happening below the surface... Today, my colleague Dan Ferris and I sat down and recorded an interview for the Stansberry Investor Hour podcast with our colleague and Ten Stock Trader editor Greg Diamond. [You can listen to the whole thing here](. Among the ideas we talked about were the "divergences" Greg sees in the market today – meaning some sectors or stocks going up while others are going down, and vice versa. Greg's "technical analysis" of the stock market allows him to pick up these behaviors. As Greg noted, tech stocks are down and still going down while industrials and "boring" names are up, generally speaking... Essentially, the idea today is that this isn't an "everything up" market, even in rallies that we may see. A quick look at the major U.S. stock indexes can show you this... The benchmark S&P 500 has traded sideways since the middle of December for the most part, except for a small rally last week... It's also about flat since June and is trading just below its 50-day moving average (50-DMA), a short-term trend indicator, and still below a downward-trending 200-DMA. In other words, the S&P 500 is still in a bear market from a technical point of view. And the story is almost identical for the small-cap Russell 2000, an index filled with growth names. The story is worse for the Nasdaq Composite Index, which has been trading near recent lows again and remains down by more than 30% over the past 12 months. Here's the good news... As these indexes struggle, the stodgy ol' Dow Jones Industrial Average is actually trading above its 200-DMA... And its short-term 50-DMA has recently crossed above its long-term trend, too. This is the opposite of the "[death cross]( a scary yet effective technical term for when a short-term trend moves below a long-term trend line. We saw death crosses all over the markets in the early part of 2022. Instead, the Dow Jones Industrial Average just showed something more like a "life cross." This could portend good times ahead. We don't know for sure, but it's important to note things like this... You can break down these indexes into even more parts and see more divergences. The point: Not all sectors and stocks are moving the same direction the way they were in the halcyon "bull market genius" days. What to do about it... In this environment, certain sectors, industries, or individual stocks present an opportunity. Others should be avoided at all costs (or even bet against). There are several ways to figure out which are which, and we've mentioned a few lately. For example, Marc Chaikin's "Power Gauge" over at our corporate affiliate Chaikin Analytics immediately comes to mind. Here's the key point... It isn't so much which strategy you use to filter the good parts of the market from the bad (though that is important), but that you have a strategy or plan you trust enough to stick with it. If you've got that down, good for you. Move about your business and your investing goals, as long as you see the mounting evidence that we're in a muddy market and it might pay to be pickier in the year ahead. But if you'd like more help, let me invite you to learn more about a market analysis (and trading) strategy that has gained the trust of many Stansberry Research subscribers over the past several years... From the man who called 'the top'... It comes from Greg, who was calling a "top" in stocks this time last year... On January 8, 2022 we published an essay from Greg titled "[This Is How Bull Markets End]( On January 9, 2022 – one year ago today – we published another essay from Greg headlined "[More Evidence the Bull Market Is Ending]( He was spot on... And as Greg told Dan and me on the podcast today, a big part of the credit for this bold call goes to the technical analysis he applies to major market sectors, stocks, and indexes. The trends he identifies under the surface have both made subscribers serious money and protected them from big losses, as many have attested to us. The kind of "divergences" we mentioned today are just the start... This kind of approach can not only tell you about the strength or weakness of the market as a whole, but also lead to potential huge moneymaking opportunities. Greg has proven this. Last year, you could have doubled your money six times using his strategy. That's during a bear market. Now, Greg is warning of a rare event ahead in 2023... one of the greatest inflection points in the markets he has seen in 20 years... He's confident we'll see a major market bottom in a year full of many potential round trips that could make for tremendous trading opportunities. These include what he predicts will be one of the best moments to buy stocks in the entire decade. You just have to know where to look... and when... This Thursday, January 12, Greg is explaining all the details in a brand-new video event. I suggest you check it out. The event is totally free and just for signing up, Greg will also give away a free trading recommendation and more thoughts about his outlook for 2023. [Register now right here](. And if you drink coffee, enjoy your next cup however you like it. But remember, this is a "half and half" market right now. It's not a hot brew with the right splash of milk... but it's not an ice-cold one, either. Gerald Celente: How the Fed Will Seize Your Money Multiple-time guest Gerald Celente, editor of the Trends Journal magazine, tells our editor-at-large Daniela Cambone that 2023 will "be the year we go from dirty cash to digital trash" and that the U.S. government makes a push for digital currency. He's wary of the consequences for everyday Americans. "It's not about 'we the people,'" Celente says, "it's about the ones running the show." [Click here]( to watch this episode of The Daniela Cambone Show right now. And to catch all of the podcasts and videos from the Stansberry Research team, be sure to [visit our Stansberry Investor platform]( anytime. --------------------------------------------------------------- Recommended Links: [The Man Who Nailed the 2022 Crash Issues a NEW Prediction]( Get out of cash and back into the market. But it's important you do this in a very particular way – which has nothing to do with buying stocks, bonds, cryptos, or any conventional investment. Ignore us, if you'd like... But this prediction comes from the man who called the 2022 crash a day before it began. [Click here to learn more](. --------------------------------------------------------------- [THIS WILL DEFINE MY LEGACY]( In this season of giving, Dr. David Eifrig is reopening his original briefing on his No. 1 biggest discovery in 15 years (and more than four decades in the markets). He has already shown readers big double-digit gains since last July... even while the broader markets suffered. But see why 2023 could be the best year yet for this strategy [right here](. --------------------------------------------------------------- New 52-week highs (as of 1/6/23): Alamos Gold (AGI), Novo Nordisk (NVO), RenaissanceRe (RNR), Starbucks (SBUX), and Travelers (TRV). In today's mailbag, feedback on [Friday's Digest](... and more of your experiences and opinions on the Southwest Airlines holiday debacle, the topic of [Thursday's Digest](... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com. "Corey, Thanks for your blending of this Digest of important articles from last week. "Putting together Greg, Doc, and Mike's work just melds these components [like] a blacksmith to weld a tool we can use. Good job Corey." – Stansberry Alliance member Bill G. Corey McLaughlin comment: Thanks, Bill. I will aim to keep Digests like it coming. "My wife and I got caught up in [the Southwest Airlines debacle] when our Christmas day flight was cancelled. We are lucky, we have the resources to book a hotel (Marriott Titanium Level) and pay for dinners, etc. Others flying Southwest may have saved for a while to have a Christmas at 'home' and not had a place to sleep the days it took to get rebooked. We got home on United on the 29th... "The real issue is what the CEO is saying. He has stated that they have the tools they need. This is a lie that is so blatant in the face of an entire industry that knows they don't that how can you trust it. He needed to state clearly that they underinvested and that they will change that and then be VERY transparent about what they are investing in and get the Pilots Association to verify it if they want my business again." – Paid-up subscriber Bill P. "Hi, I thought the Southwest Airlines article missed the point, turning things on their head. Even with the best IT system in the world, if SW pilots and crews are stuck in end points, the system comes down. "Other airlines made it less because of their better IT systems, which obviously helped, and more because they use hubs. A lot of things can be overcome if one has staff congregated in the same locations..." – Paid-up subscriber Gene G. "In March 2017, my 9 year old son and I flew from DCA [Reagan Washington National Airport] to Havana on Southwest for a meeting at the International School of Havana. While in Cuba, a surprise ice storm hit the northeast U.S. We did not learn about the storm or that our flight from Fort Lauderdale to DCA was cancelled until landing in Florida. We were going to have to get a hotel room for 2 nights at my expense to get the soonest flight back... What ultimately happened was the two of us bought one-way tickets on American back to Dulles Airport. "In August 2017, my wife, son, and I tried to fly from DCA to Chicago on Southwest. Thunderstorms came through DC and cancelled our flight... Something went sideways and our second flight, then third flight, followed by our fourth flight got cancelled... We finally got the last three seats on a flight to Milwaukee and then drove to Chicago. "After those debacles, I vowed to never fly Southwest again. While Southwest struggled [last] weekend, I just sat back and enjoyed smooth travel on United back-and-forth to Denver for a fun ski trip. I made the absolute right decision nearly six years ago to never fly that airline again. I am sure others feel the same today. This mess will hurt Southwest for a long time." – Paid-up subscriber Dan T. All the best, Corey McLaughlin Baltimore, Maryland January 9, 2023 --------------------------------------------------------------- Stansberry Research Top 10 Open Recommendations Top 10 highest-returning open positions across all Stansberry Research portfolios Stock Buy Date Return Publication Analyst ADP Automatic Data 10/09/08 852.2% Extreme Value Ferris MSFT Microsoft 11/11/10 804.3% Retirement Millionaire Doc MSFT Microsoft 02/10/12 689.0% Stansberry's Investment Advisory Porter WRB W.R. Berkley 03/16/12 656.5% Stansberry's Investment Advisory Porter HSY Hershey 12/07/07 539.9% Stansberry's Investment Advisory Porter ETH/USD Ethereum 02/21/20 467.0% Stansberry Innovations Report Wade BRK.B Berkshire Hathaway 04/01/09 465.1% Retirement Millionaire Doc AFG American Financial 10/12/12 450.3% Stansberry's Investment Advisory Porter ALS-T Altius Minerals 02/16/09 325.7% Extreme Value Ferris FSMEX Fidelity Sel Med 09/03/08 302.2% Retirement Millionaire Doc Please note: Securities appearing in the Top 10 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the model portfolio of any Stansberry Research publication. The buy date reflects when the editor recommended the investment in the listed publication, and the return shows its performance since that date. To learn if a security is still a recommended buy today, you must be a subscriber to that publication and refer to the most recent portfolio. --------------------------------------------------------------- Top 10 Totals 4 Stansberry's Investment Advisory Porter 3 Retirement Millionaire Doc 2 Extreme Value Ferris 1 Stansberry Innovations Report Wade --------------------------------------------------------------- Top 5 Crypto Capital Open Recommendations Top 5 highest-returning open positions in the Crypto Capital model portfolio Stock Buy Date Return Publication Analyst ETH/USD Ethereum 12/07/18 1,122.3% Crypto Capital Wade ONE-USD Harmony 12/16/19 1,055.5% Crypto Capital Wade POLY/USD Polymath 05/19/20 1,037.2% Crypto Capital Wade MATIC/USD Polygon 02/25/21 836.4% Crypto Capital Wade TONE/USD TE-FOOD 12/17/19 376.1% Crypto Capital Wade Please note: Securities appearing in the Top 5 are not necessarily recommended buys at current prices. The list reflects the best-performing positions currently in the Crypto Capital model portfolio. The buy date reflects when the recommendation was made, and the return shows its performance since that date. To learn if it's still a recommended buy today, you must be a subscriber and refer to the most recent portfolio. --------------------------------------------------------------- Stansberry Research Hall of Fame Top 10 all-time, highest-returning closed positions across all Stansberry portfolios Investment Symbol Duration Gain Publication Analyst Nvidia^* NVDA 5.96 years 1,466% Venture Tech. Lashmet Band Protocol crypto 0.32 years 1,169% Crypto Capital Wade Terra crypto 0.41 years 1,164% Crypto Capital Wade Inovio Pharma.^ INO 1.01 years 1,139% Venture Tech. Lashmet Seabridge Gold^ SA 4.20 years 995% Sjug Conf. Sjuggerud Frontier crypto 0.08 years 978% Crypto Capital Wade Binance Coin crypto 1.78 years 963% Crypto Capital Wade Nvidia^* NVDA 4.12 years 777% Venture Tech. Lashmet Intellia Therapeutics NTLA 1.95 years 775% Amer. Moonshots Root Rite Aid 8.5% bond 4.97 years 773% True Income Williams ^ These gains occurred with a partial position in the respective stocks. * The two partial positions in Nvidia were part of a single recommendation. Editor Dave Lashmet closed the first leg of the position in November 2016 for a gain of about 108%. Then, he closed the second leg in July 2020 for a 777% return. And finally, in May 2022, he booked a 1,466% return on the final leg. Subscribers who followed his advice on Nvidia could've recorded a total weighted average gain of more than 600%. You have received this e-mail as part of your subscription to Stansberry Digest. If you no longer want to receive e-mails from Stansberry Digest [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. 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