I hope you all had an enjoyable long weekend. I also hope you enjoyed the”subscriber’s only” market analysis video that TradeMaster Daily Stock Alerts Jason Cimpl shared with us on Friday.
Every Friday, Jason makes a video for his TradeMaster members where he shares his top-notch chart analysis and provides a forecast for the coming week that includes everything from the”big picture” view to specific entry points on his top stock recommendations.
Jason has identified virtually all of the important turning points for a variety of assets over the last year. His TradeMaster readers made money when natural gas prices bottomed in October of 2009. They were ready when the U.S. dollar bottomed in December 2009. They caught big moves in oil and were perfectly positioned for the tech stock breakout that started in March 2010. They even made money when the stock market sold off on the European debt news.
In short, Jason has been consistently ahead of the curve. So, in light of the recent weakness for the euro and oil prices, and the fears that global growth might be slowing, I thought you might be interested to hear (and see) what Jason is expecting. (If you didn’t view that video, you can do so HERE. It’s 28 minutes long, but it’s worth it.)
As a quick recap, Jason is bullish on oil prices and the euro. A rally for the euro might be the last thing anyone expects right now. But it’s when sentiment towards an asset is hitting extreme negativity that a bottom is usually formed.
A rally for the euro is exactly what the stock market needs right now. Part of the reason oil prices are weak is that the dollar has strengthened against the euro. And part of the reason for the recent correction is the perception that growth in Europe will slow and dampen demand for U.S. and Chinese exports.
So a stronger euro will help on all fronts.
Jason also shared a few stock trading recommendations to position you for a euro rally. I’ll be checking in on these positions in the days ahead. And I will also let you know when Jason recommends exiting those positions.
The U.S. manufacturing sector continued to rebound as the April ISM survey posted another strong reading.
Nomura Securities economist Zach Pandl told Bloomberg:”The manufacturing recovery is proceeding at a very quick pace…[t]his strong report should dampen concerns about the European fiscal crisis derailing the U.S. recovery. U.S. growth is on a pretty strong trajectory here and it would take a pretty large shock to derail it.”
That’s a very positive comment. And it supports the notion that the current weakness in stock prices is very likely a good buying opportunity. (I’ll be discussing how the European debt crisis has given investors attractive entry points on top-quality stocks in this Friday’s special video investment conference called Profiting from Crisis in Europe. It airs this Friday, June 4, at 6 pm. It’s free to attend and you can register HERE.
After posting 6.1% GDP growth in the First Quarter, Canada became the first G7 country to raise interest rates. Canada’s central bank hiked interest rates to 0.50% from 0.25%. Clearly, Canada is still in stimulus territory.
Perhaps more importantly, Canada hasn’t seen any serious effects from the European debt problems. That’s more good news for a weaker U.S. dollar, stronger euro and stronger U.S stock market.