You always have to think twice before putting this in print and I have.
In March of 2009, I wrote an article highlighted in Newsmax called, “The Short Squeeze That Will Save The Stock Market.” You can google it and you will see that it called the bottom of the market one day before the market bottom.
Specifically the article targeted PNC at 16, now 126.92 and WFC at 8, now 54.40. In the 9 years since, I have not called for a market top until 7/27/17.
Based on the speed of activity, the non-existence of any bears whatsoever and the overall realization that there is nothing left to buy, I am now saying the Top for 2017 is in.
Google it, search it, do whatever you want – I’ve never said that before.
This is my first all encompassing call since 2008. So here are the numbers that I’m calling for 2017:
I know I could end up looking bad but as a trading legend told me yesterday, being early is under appreciated.
There’s no doubt that technology has elevated this market with stocks, like Facebook and Amazon, leading the charge but who really benefits? Just yesterday I read about Facebook employees living out of their garage and how many of the 50,000 people Amazon is hiring will have life changing careers?
When you walk into a bank, do you see the bank employee teaching you how to electronically make deposits so there will be no need for the teller? For some reason, the irony of that always upsets me.
Maybe I’m wrong. Maybe there’s something I’m missing but aren’t they essentially accelerating the loss of their own job?
Speaking of banks, quant Marko Kolanovic just warned clients to hedge against a market drop because of extremely low volatility that normally precedes a sell off.
Kolanovic highlighted the “lowest level of volatility” since 1983 and concern that if the market falls, investors will begin “selling into market weakness to cut losses” just like what happened in 1987.
Of even more concern is the unusual sector rotation. Just this week, we witnessed the strange combination of both tech stocks and traditional stocks like BA leading the market higher.
In an effort to take advantage of this once in a generation sector rotation I am using this to specifically focus on sectors.
By targeting ETFs, the individual investor can profit as money moves across the board.
Just because the top is in, doesn’t mean profits are done for the year. Buying a simple put, in the right ETF, can allow you to profit as sectors move lower.
Likewise, targeting the VXX of Gold can also allow you to benefit from enhanced market volatility. The only obstacle in our way is being prepared and this solves that.
I believe that when we look back on this article next year, it could be the most important thing I did in the publishing field and I hope you can benefit from it.
Adam Mesh is CEO and Founder of The Adam Mesh Trading Group. For the past 18 years he has coached thousands of students to all levels of success in trading. He is also creator of the revolutionary Full Contact Trading.