A True Unfair Advantage (Market Situation Report’s Transcription)

 

If you would prefer the video format, you can find it here.

For years I wanted to figure out how to “X-ray” the market; call it a “Market X-RAY”.

Why not?  Most of you are familiar with the idea that doctors use equipment to see inside the human body; to see what is going on.  At times, doctors use CAT scans, MRIs, PET Scans, and of course, X-rays.

So, I asked myself, “How can I look inside the market and see where I should, and shouldn’t be?”

What if X-raying the Stock Market could be like X-raying wealthy people’s briefcases and seeing where the money is.

Well, I spent years (and over $100,000) to build such an X-Ray machine. I call it “Market X-RAY”. 

 

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Market X-RAY is able to show you where to be, and where not to be.  It also shows you if you are taking on too much risk for no reason.

The best part of Market X-RAY, is the way that it was designed.  This powerful tool is designed so you can quickly and immediately know what is going on in all the markets.

Should you really buy The Australian stock market over the U.S.?  How do you know it is growing faster?  Maybe it’s not.  When I mention “knowing”, I don’t mean “knowing” through stories.  I mean knowing through the power of the Market X-RAY.

Check out a screen shot of just part of it below.

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Look at the NASDAQ.  All four of these indices are being compared against the S&P 500.  You can see the minimum and the maximum that they have been. 

You can see what the typical range has been, where they are today, and which direction they are trending.

So, what are you looking at?  You are looking at a ratio that is measuring which of the indices is moving faster against the other.

As of right now, the NASDAQ is moving back.  Today, it’s moving to the left.  That means the NASDAQ is moving slower than the overall market.

How does this help you?  It means that you might not want to be in technology right now, because the overall market is moving faster.  That also means that you might be taking on sector risk without investment reward.

Again, look at the Market X-RAY screen shot below. What do you notice?

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Do you see that Mid-Cap stocks and SmallCap stocks are crushing the overall stock market?

Both of the “NOW” buttons are pegged to the right of the chart.  That means that Mid-Cap and SmallCap stocks are moving up faster than the market.  It also means that looking into owning those may make sense to you, because the sector-risk is worth the reward.

This is pretty cool stuff, isn’t it?

When people talk about an unfair advantage over Wall Street, Market X-RAY is that unfair advantage.

Those who want to have an unfair advantage over the market, need to know what those internal workings are.

Lastly, you can see that LargeCap stocks are in their typical range with the overall market.

What does this mean?  There would be no reason to take on additional risk and go into LargeCap stocks, when you would have less risk owning the overall market.

So, what is the take-away from the Index X-RAY section of Market X-RAY?

SmallCaps and Mid-Cap stocks are strongly leading the way.

Next, I want to move attention down to a section of the Market X-RAY called Sector X-RAY.

In the Sector X-Ray section, my attention is drawn to the Financial Sector in comparison to the overall market.

Look at the screen shot below.  Notice how the Financial Sector has been lagging the overall market.  The “Now” button is way to the left of the typical range of this ratio.

BUT, notice how it is heading to the right.  That means that the Financial sector is making up for lost ground.  Even though it had been underperforming the market in the past, it is outperforming the market today.

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In the next image below, I have clicked on the “Financial Sector” hyperlink.   This shows an historic price chart of this sector compared to the overall market.  By doing this, I can get a clearer picture of how the Financial Sector is moving in comparison to the overall market. 

Look at the price chart below and notice how the price chart has been moving up since the end of 2011. When you see the price chart moving up, (that means the sector in this case), the Financial Sector is increasing in price faster than the market.

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You can also see that the price chart was falling from March 2011 to October 2011.  You would have wanted to avoid the Financial Sector and financial stocks then.

What is great about these “X-RAYS”, is that you can immediately see what sectors, indices, commodities, and countries are underperforming and outperforming the overall market.

Let’s look at one more sector, and compare it to the overall market.

Look at the screen shot below.  Take note of Telecom.  Like the financial sector, notice how it has underperformed the market in the past.

But, look at where the “NOW” button is for the Telecom Sector.  Notice how the arrow is pointed to the right, just above the “NOW” button.

That means that as of today, the Telecom Sector is outperforming the market.  And, it is doing so after underperforming the market for years.

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This could be a very strong indicator that Telecom, after years of underperforming, is about to outperform the market for years to come.

Is it worth it to buy into the Telecom sector?

Let’s take a closer look inside the X-RAY and see what the price charts say.

Look at the price chart below.

 

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Based on the Telecom X-ray, July 2012 started moving up faster than the overall market.  This is why you may want to be in the Telecom sector from here forward.

In fact, the price makes it look like it has breaking upward out of a six-month consolidation.

For some, having these X-RAYS really does seem to be an unfair advantage.

As important as knowing which sectors are outperforming, it is also important to know which sectors are underperforming.

Right?

Why would you want to take on an underperforming sector, if you could simply buy the overall market with lower risk and lower volatility, with your money growing faster?

The answer is, you wouldn’t.  So, now you won’t have to.

Thanks for being here with me today so that I could show you one of my tools that has been able to provide my followers, and me, an unfair advantage.

Together, we are growing and protecting your wealth,

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P.S. If you are looking for an advantage, that ‘one thing’ that can make a difference for you, then perhaps having access to the Market X-RAY, and the other proprietary tools and research, is what you have been looking for.  You can try us out without making any long-term commitment.  Check us out here.

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