New Math for Stock Market Downside

Profit from the Pros New Math for Stock Market Downside When the market was rallying early in the session on Monday I sold the 3 riskiest stocks in the [Reitmeister Trading Alert] and now have nearly 40% of my money in cash. The math equation below should explain to you my newfound caution: Weaker economic reports + More aggressive Fed + Presidential dead heat = Greater uncertainty = More downside risk in the near term. This equation does not change the long term bullish bias. But it does say why stocks could go lower in the near term. Likely a test of 2100 is on the way or even all the way down to the 200 day moving average at 2059. That would be a ripe spot to put some of that cash back to work. Long term investors can just stay the course. However, more aggressive short term trades should consider joining me in this market timing move. Best, Steve Reitmeister Executive Vice President, Zacks Investment Research Sponsor [Why Haven't You Looked at Zacks Top Stocks?] Starting now, you can get instant access to the latest picks from our market-beating strategies that produce average gains of +20.6%, +31.1%, +54.7% and +57.6% per year. Zacks will also give you a free Special Report, Top 5 Valuation Secrets, which could dramatically change the way you invest. [Learn more now >>] Most Popular Articles from Zacks.com [3 Metal and Mining Stocks to Buy before the Fed] Now is time to start working on your FOMC watch list. Start it off with these three stocks. [Read More »] [Profit from 5 Stocks Likely to Beat on Earnings] Bet on five stocks that are likely to outdo earnings estimates. [Read More »] [6 Quality ETFs to Sail Through Uncertain Markets] Inside quality ETFs that can give you protection from an upheaval in markets. [Read More »] [Streaming Today: Netflix, Twitter, Amazon, Pandora, Spotify] Here is a look at recent events in the emerging video streaming market. [Read More »] [5 Efficient Stocks to Ensure High Yields] Companies with favorable efficiency levels are believed to provide higher returns. [Read More »] Sponsor [What's Today's Top Rated Mutual Fund?] Use the Zacks Mutual Fund Rank, a quantitative ratings system designed to help you find the best funds to beat the market. See which ones to buy, which to sell and track your favorite mutual fund family. [Get started now>>] [Bull of the Day: InterDigital Inc. (IDCC)] This company has significantly reduced costs, and has just signed a huge royalty deal with Huawei Technologies. [Read More »] [Bear of the Day: Polaris Industries (PII)] Due to recalls and stop sale advisories Polaris was forced to make extensive reductions to their FY 2016 guidance. [Read More »] [New Zacks Strong Buys for Septmeber 20th] Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »] [Customize Your Profit from the Pros Delivery] Connect with Us: [Facebook] [Twitter] [StockTwits] Contact Info: Phone: 1.800.767.3771 ext. 9339 Email: [support@zacks.com] [Terms] | [Privacy] | [Unsubscribe] [Zacks] You are registered to receive this "Profit From The Pros" e-mail newsletter at {EMAIL}