Too Hot, Already? As the stock market soars from its March lows, many folks are worried that the market may have gotten too hot, too quickly. It's a fair point. But I caution you to focus not on price... but on volume. On that front, my Dow 100,000 theory stands firm. Trading volume is surging and showing no signs of letting up. I like to study option and derivative market volume. Those metrics give me a better view of who's buying what and where they expect prices to head. Right now, this vital piece of the market is red-hot. The leading derivatives exchange, the CME Group, recently reported booming volume. Daily volume on its stock indexes was up more than 80% in July. An average of 2 million option contracts changed hands each day last month. And on August 11, the exchange reported record amounts of precious metals contracts changing hands. The action has lots of folks worried about a bubble. But there's no need to scratch our heads and wonder whether things are amiss. They are. Most certainly. Have you seen the headlines?! But this is where it pays to focus on the indicators that matter most... So Long, Fundamentals Many investors are wondering whether traditional valuations have gotten too rich. After all, much of this recent run is purely speculative. Stock prices have soared, while earnings expectations have remained flat or fallen. But with so much free money floating around ($7 trillion worth)... prices are distorted. All that money must go somewhere. As long as the Fed is easing, traditional valuation metrics are mere relics of the good ol' days. What does it matter, for example, if a company's return on equity is falling? The Fed will just loan it some more cheap cash. That's why I choose to focus on volume. The Fed can't print buy and sell orders... at least not yet. Some folks are looking at the "speculative fervor" in the markets as a sign of froth - a sign that trouble is brewing. They said the same thing in 2009... 2010... and 2011... all the way from one high to the other. I say investors are not just smart if they join the action... they must join it. There's easy money to be made. Until volume wanes... the order is simple. Buy like hell. If you feel like you're always a day late and a dollar short, this is your chance. The market won't wait around. That's why I'm doing something special next Wednesday... At 1 p.m. on September 2, I'm going live with my Super Trader Rally. That's when I'll detail the volume-based trading strategy I recently put through three rounds of beta testing. The results were spectacular. Out of 15 long positions, 14 were winners - with average peak gains of 138%... in just 26 days. During this free, interactive event, I'll also detail... A brilliant trading technique that turned every $1,000 into $237,361 over 30 years The one chart you need to get THE TRUE STORY on every publicly traded stock in the world The key criteria I screen for in today's market.
Plus, everyone who attends this free seminar will receive a complimentary Trading Research Starter Kit (a $199 value). Click here to reserve your spot at the event. Be well, Andy P.S. If you've been too timid to invest in this volatile market, you'll want to get your hands on my Trading Research Starter Kit. It details everything you need to know to get started, including a list of my favorite brokers. It's FREE just for attending the event next week. Click here now. | 
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