Are you a sitting duck?

I'm Seeing More Troubling Signs In The Market [View Online]()|[Unsubscribe]( [Street Authority Daily] -[]Recommended Link [Are you a sitting duck?]( Buy and hold investors are like sitting ducks any time the market moves against you. But what if you didn't have to worry about where the market will move? Investing legend Jim Fink has just opened the doors to his unique trading system that hands you the opportunity to extract $2,440, $5,220, and even $7,890 from the market no matter which way it moves - without having to own a single share of stock! [Get the full details here.]( February 5, 2021 I'm Seeing More Troubling Signs In The Market By Amber Hestla [Amber Hestla] This week I want to start with an update of [the same chart]( I opened with last week. It's a chart of the Invesco QQQ Trust (NASDAQ: QQQ), an ETF that tracks the Nasdaq 100 Index. A 52-week rate of change (ROC) indicator is at the bottom of the chart. The dashed line is at the 40% level for the indicator. -[]Recommended Link [Economic "Reset" Hidden in Unrest?]( Startling new research reveals a surprising connection between the current nationwide unrest and a secret economic force (worth more than $118 trillion). No one from Wall Street to the White House has the power to stop it. But one small group of investors are setting themselves up to turn this "reset" into an incredible opportunity… potentially turning every $1,000 into $4,060. [Discover how you can join them now - before it's too late. >>]( As I noted last week, when the 52-week ROC tops 40%, we're most likely near the end of a bubble. That's because the fundamentals in the market tend to change slowly. And when the ROC tops 40%, the stock market is most likely ahead of the fundamentals. Even after last week's selloff of more than 3%, ROC remains above 40%. This shows how speculative the stock market has become. Actually, both parts of that sentence show how speculative the stock market has become. ROC shows how rapidly investors have been buying stocks. The selloff highlights how narrow their buying has become. The GameStop Story Is Further Evidence The biggest story last week was GameStop, a stock that is now disconnected from fundamentals. It seems like it's a battleground between individual investors who are buying to teach Wall Street hedge funds a lesson. At least that's one of the storylines in the media. (I weighed in on the situation in [this piece](.) Looking at the story dispassionately, it's obvious to me the message from GameStop is that "the end is near" (as I noted last week) - and the end is going to be really bad. That analysis is based on what we are seeing happen with Robinhood and other brokers. They were forced to halt trading in GameStop and other stocks. They weren't doing this for sinister reasons. They did it because regulations require minimum margin requirements in the financial system. Trading in speculative stocks is increasing those margins for some brokers, and they need to find the cash. To me, that is an important story. A few brokers are undercapitalized in volatile markets. It reminds me of the news in June 2007 that Bear Stearns was bailing out a hedge fund in the subprime mortgage market. Bank of America noted at the time, "We continue to see this issue as more a reputation issue for Bear versus one that could lead to significant loss of equity capital." You could say something similar today, calling the GameStop mess a reputation issue for Robinhood. Or you could recognize that this is a warning that there are stresses in market structure that could lead to yet another once-in-a-generation crisis in the stock market. That would be the third one since 2000. Looking Ahead My indicators are telling me the stock market is likely to remain weak for at least for a few more weeks. Below is a chart of the SPDR S&P 500 ETF (NYSE: SPY) with my Income Trader Volatility (ITV) indicator at the bottom. ITV is interpreted like the more popular VIX Index. Increases in the indicator coincide with price declines in the stock market. At the end of last week, ITV crossed above its moving average, the dotted line in the bottom panel of the chart. That is a "sell" signal. My Profit Amplifier Momentum (PAM) indicator confirmed the signal. We could see some bargain hunting in the market in the short term. But I believe the tide has shifted and expect the next significant move in major stock market averages to be down. In times like this, it's important to have a game plan. And one strategy I use works just like an "insurance" plan, however, allowing us to get paid instantly from the stocks we own while protecting us on the downside. My subscribers and I have been trading this way for years, allowing us to pocket hundreds (or even thousands) of dollars with very little effort. I think every investor who's looking for income owes it to themselves to learn more about how this works -- before it's too late. [You can access it right here.]( -[]Recommended Link [This Building Could Unlock Up To $55,362 A Year In Marijuana Payouts ]( [This Building Could Unlock Up To $55,362 A Year In Marijuana Payouts]( You probably wouldn't know by looking at it, but this building could be the key to unlocking up to $55,362 every year in marijuana profit-sharing payouts. The best part? This company is legally obligated to pay out 90% of its marijuana profits. And the next payout is just days away. [Details here.]( To ensure that you receive these emails, [please add us to your address book.]( Disclosure: StreetAuthority doesn't own shares of any securities mentioned in this article. 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