Spamdex - Spam Archive

Report spam

Send in your spam and get the offenders listed

Create a rule in outlook or simply forward the spam you receive to

Also in

A Total Global Affair

Having trouble viewing this email? View it online.
Thursday, August 27, 2015
Money and Markets
A Total Global Affair
by Mike Burnick

Dear ,

Mike Burnick

Global market meltdown. That's really the only way to describe the recent stock market plunge worldwide.

The selling began mid-last year in Europe, spread to emerging markets and most notably China a few months ago. Now the selling has caught up to U.S. stocks with a vengeance.

Just between last Thursday and Monday, the Dow Jones Industrials lost nearly 1,500 points! That's extreme, but is it extreme enough to tell us the worst may be over and this could be a great buying opportunity?

History suggests it does.

First, numerous market breadth indicators are oversold in the extreme. Several have reached levels not seen in years, and only after much steeper corrections than this. Just take a look at the graph below ...

Click image for larger view

This shows the percent of stocks listed on the NYSE trading above their 50-day moving average, a widely followed trend indicator. Typically, 50% or more of all stocks trade above this key level, signaling a healthy uptrend.

But notice how extreme low readings in this index line up almost perfectly with major stock market lows over the past five years.

In 2011 for example, when the S&P dropped nearly 20% in value, less than 10% of stocks were above their 50-day moving average. In other words, 90% of stocks were in downtrends.

This was such an extreme bearish reading that it screamed buy. That's because stocks were so oversold there was nowhere to go but back up.

Shield Your Wealth!

Mike Larson wants to help you shield your wealth against major market reversals by identifying major dangers on the horizon. He also wants to help you avoid losses by identifying stocks that are simply too risky for you. To get everything you need to safely grow your wealth today, click here!

Internal Sponsorship

Sure enough, after bouncing around for a few months, the S&P soared 31.5% higher over the next six months!

Since then there have been several other extreme lows in this indicator (circled above), marking two major lows in 2012, several minor lows in 2013 with readings in the 30% range (not circled), and last year's October low.

Every single time stocks rallied substantially higher.

But the current reading of just 7.5% beats them all. It's the lowest since 2009! In other words, 92.5% of NYSE stocks have already sold off, and stocks are way overdue for a rebound, probably a big one.

Second, fear is so thick right now you can cut it with a knife. Just tune into CNBC for five minutes and you'll see what I mean. I keep expecting Cramer to jump out of his studio window any day now.

The CBOE Volatility Index (VIX) is a more objective measure of stock market fear. It too is a contrary indicator. In the past, whenever VIX spiked sharply higher, it was almost always at, or very near, a stock market bottom.

Click image for larger view

This week's extreme VIX print over 50 intraday was the highest reading in the last six years. Granted, it's possible this signals a negative trend change for the market is underway. After all, VIX did ultimately spike even higher in 2008.

But much more often a VIX reading this high has been a reliable signal that stocks are oversold and to expect a rally in the weeks and months ahead.

Translation: if your time-frame as an investor is longer than a few weeks, this should prove to be a great buying opportunity.

In fact, my colleague Jon Markman recently shared some interesting stats from that examined every VIX spike above 50 in the past 30 years.

After such extreme readings, the S&P went on to post a median gain of 7.2% just one month later, and stocks were up 97% of the time.

Three months later, stocks gained 11.8% and were up 98% of the time.

Going even further back, over the last half-century, there have been eight occasions when the S&P 500 plunged 8% or more over a three day period (which it did again Thursday-Monday).

Stocks subsequently bounced 99% of the time — enjoying a median gain of 6.2% over the next thirty days —and stocks were 22.9% higher one year later.

This doesn't guarantee a bottom is in. Stocks could slip lower near term. But it does tell me panic selling — or worse, selling short — at this point is most likely the wrong move to make.

Based on an objective look at stock market moves in the past, the probabilities strongly suggest higher prices are ahead. Now's the time to have your shopping list ready to scoop up some quality stocks on the cheap.

Good investing,

Mike Burnick

The investment strategy and opinions expressed in this article are those of the author's and do not necessarily reflect those of any other editor at Weiss Research or the company as a whole.

Have comments? Tell Us!

Facebook Twitter Linkedin YouTube Pinterest

About Money and Markets
For more information and archived issues, visit
Money and Markets is a free daily investment newsletter published by Weiss Research, Inc. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. We cannot guarantee the accuracy of third party advertisements or sponsors, and these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our Terms and Conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? To make sure you don't miss our urgent updates, just follow these simple steps to add Weiss Research to your address book.

Attention editors and publishers! Money and Markets teaser content may be republished with a link to the full story on Such republication must include attribution with a link to the MoneyandMarkets home page as follows: "Source:"

Money and Markets: A Division of Weiss Research, Inc. |

4400 Northcorp Parkway | Palm Beach Gardens, FL 33410 | 1-800-393-0189


All titles, content, publisher names, trademarks, artwork, and associated imagery are trademarks and/or copyright material of their respective owners. All rights reserved. The Spam Archive website contains material for general information purposes only. It has been written for the purpose of providing information and historical reference containing in the main instances of business or commercial spam.

Many of the messages in Spamdex's archive contain forged headers in one form or another. The fact that an email claims to have come from one email address or another does not mean it actually originated at that address! Please use spamdex responsibly.

Yes YOU! Get INVOLVED - Send in your spam and report offenders

Create a rule in outlook or simply forward the junk email you receive to | See contributors

Google + Spam 2010- 2017 Spamdex - The Spam Archive for the internet. unsolicited electric messages (spam) archived for posterity. Link to us and help promote Spamdex as a means of forcing Spammers to re-think the amount of spam they send us.

The Spam Archive - Chronicling spam emails into readable web records index for all time

Please contact us with any comments or questions at Spam Archive is a non-profit library of thousands of spam email messages sent to a single email address. A number of far-sighted people have been saving all their spam and have put it online. This is a valuable resource for anyone writing Bayesian filters. The Spam Archive is building a digital library of Internet spam. Your use of the Archive is subject to the Archive's Terms of Use. All emails viewed are copyright of the respected companies or corporations. Thanks to Benedict Sykes for assisting with tech problems and Google Indexing, ta Ben.

Our inspiration is the "Internet Archive" USA. "Libraries exist to preserve society's cultural artefacts and to provide access to them. If libraries are to continue to foster education and scholarship in this era of digital technology, it's essential for them to extend those functions into the digital world." This is our library of unsolicited emails from around the world. See Spamdex is in no way associated though. Supporters and members of Helping rid the internet of spam, one email at a time. Working with Inernet Aware to improve user knowlegde on keeping safe online. Many thanks to all our supporters including Vanilla Circus for providing SEO advice and other content syndication help | Link to us | Terms | Privacy | Cookies | Complaints | Copyright | Spam emails / ICO | Spam images | Sitemap | All hosting and cloud migration by Cloudworks.

Important: Users take note, this is Spamdex - The Spam Archive for the internet. Some of the pages indexed could contain offensive language or contain fraudulent offers. If an offer looks too good to be true it probably is! Please tread, carefully, all of the links should be fine. Clicking I agree means you agree to our terms and conditions. We cannot be held responsible etc etc.

The Spam Archive - Chronicling spam emails into readable web records

The Glass House | London | SW19 8AE |
Spamdex is a digital archive of unsolicited electronic mail 4.9 out of 5 based on reviews
Spamdex - The Spam Archive Located in London, SW19 8AE. Phone: 08000 0514541.