Do you feel that? That’s the feeling you get when a new bull market is starting on Wall Street.
Yesterday, Federal Reserve Chairman Jerome Powell all but confirmed that the Fed will pivot on rate hikes in 2023. And stocks absolutely soared. The Dow jumped more than 2%. The S&P 500 popped over 3%, and the Nasdaq soared more than 4%. And there was panic buying into the close, with stocks just continuously rising seemingly every few minutes.
It was a hugely positive day for stocks – and potentially a historic one, too.
The stock market didn’t just rally yesterday. It did something entirely unique – something that it has only done 14 times over the past 72 years!
That “something” tends to mark the end of bear markets and the beginning of new bull markets. It is one of the stock market’s best strong buy signals in history.
We think you should listen to it. If you do, you may give yourself the chance to make a small fortune over the next year as the market stages an unforgettable stock boom.
The Reclamation of the 200-Day Moving Average
Yesterday, the S&P 500 did something historic. It rallied so much that it closed above its 200-day moving average for the first time in over six months.
Why is that so historic?
Over the past 72 years, the stock market has only had 14 days like yesterday – where it crossed above its 200-day moving average after spending at least six months below it and languishing in a bear market.
In 13 of those 14 times, the bear market ended, and stocks proceeded to soar over the next year. The average return? About 20%.
The only false positive signal in 72 years? In the midst of the dot-com crash, when valuations were significantly higher than they are today. And therefore, the comparison doesn’t hold much weight.
Said differently, yesterday’s stock market price action strongly suggests – via 72 years of historical market data – that the 2022 bear market is over. And 2023 is going to be a record breakout year for stocks.
It’s time to position your portfolio before that stock boom arrives.
The Final Word on the Incoming Stock Boom
There are a lot of reasons to believe 2023 will be a record year for stocks. We’ve covered them extensively over the past month. Falling inflation. Declining interest rates and yields. Depressed valuations. Oversold conditions.
But any good trader will tell you that price is the most important thing in the market. It’s the ultimate truth.
With the S&P 500 reclaiming its 200-day moving average on significant volume after spending six months languishing below it, the price action is strongly suggesting a new bull market has arrived.
We think it’s time to listen to that price action. It’s time to buy ahead of a potentially massive stock boom in 2023.
And we can help you prepare for it.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.