Three Signs the Market Is Heading for a 20% Correction

The S&P 500 cracked new highs for the week on Friday as the Russell 2000 index pulled off its recent highs.

And listen up – because this may be the start of the “last squeeze” of this market’s bull run.

That’s right. I’m calling it now… a correction is coming.

Three big yellow “caution lights” flashed across my screen last week. And these are three big signs that the market is getting ready to drop anywhere between 10-20%.

Does this mean that you should sell everything and prepare for a market crash?

No.

Remember my Trading Commandment – “Volatility is a trader’s best friend.”

Volatility creates opportunities for those willing to watch for them. Those opportunities come in the form of the chance to buy some of the high-flying stocks when they make these healthy corrections.

It’s called buying the dip. And it’s one of the best ways to start generating long-term wealth.

According to my radar, here are the top five “buy-the-dip” candidates this week…


This Sector Just Checked All Three of my Investment Criteria Boxes

I’ve been trading for more than 30 years, and I’ve never seen this level of chaos in the market.

Volatility ripped through stocks after yesterday’s close while unrest grew in DC. Investors could have looked at it with “worst-case scenario” tunnel vision, assumed a civil war was going to tear the country apart, and pull the markets down with it.

But that’s not the kind of volatility I’m talking about…

After this morning’s opening bell, stocks shot higher. As I type, the three major indices are all rallying over 1% higher.

The fact is that our market has been maturing since 2000. We’ve seen terrorist attacks at home and abroad, flash crashes, and other memorable events that would have taken the market down more than 20 years ago – and not one of them has had a lasting effect on stocks.

Today, stocks know how to digest these events and move on.

That’s why it’s important to avoid the noise and block out the headlines. Don’t let emotions – fear or greed – control your investments.

Instead, narrow your focus. Look only at how you can continue to profit from the strong bull run.

I, for example, only focus my research on two or three sectors at any time. In order for a sector to gain my focus, it has to check three specific boxes…

And one sector in particular just met all three of my investment criteria.

A move that generates big profits for those of us that can find the short squeeze before it happens.

This name could be your smartest investment yet…