Mother Of All Buy Signals?

I had a good chuckle the other night.

I friend of mine told me he’s short the stock market.

His reason?

He thinks the stock market is too high.

When prodded further, there was no indicator, no system, or news item for his bearishness.

Turns out that it was just a hunch.

A gut feeling.

Did I mention my friend has never pieced together a winning year?

Who knows? Maybe this will be his year.

Or maybe this will be the mother of all buy signals.

Let’s not let his lack of trading success go to waste though…

Let it serve as a lesson.

Trading from the gut is a surefire recipe for disaster.

It’s like the time my grandma just threw a bunch of ingredients together into a bowl, and made cookies so hard, you could use them to hammer a nail into a wall.

Even after doing this full time for the past 20 years, I never listen to my gut.

I always test my hypothesis.

When I didn't test, I lost money. Simple as that.

When we were developing the new Smart Money Bond Indicator, I quickly discovered that the rules were 180 degrees out of whack

After reversing the rules, the system halved the drawdown of buy and hold, and increased gains by 17%

Armed with that knowledge, we check to see if bonds are on a buy signal before we invest in them.

Currently, the bond SMI is on a BUY signal.

You can use an ETF like TLT or IEF to trade bonds.

No need to mess around with expensive brokers.

DIY investors have never had it so good when it comes to low trading fees.

However, when it comes to knowing what to do with your money and when — that's a different story.

TV talking heads with “insider” knowledge that seems more like fake news a month later.

Hundreds of videos on YouTube with opposing ideas.

Gurus galore that have been calling for an end of this bull market since it started in 2009.

You know the drill.

That's why I went to a purely mechanical approach to trading the markets.

Where you don't rely on opinions — “just the facts ma'am,” as Sergeant Joe Friday is alleged to have said.

Earlier I mentioned that bonds are on a buy signal.

Since the 90's, stocks and bonds have been like two star-crossed lovers, moving in opposite directions.

Does that mean stocks are on a sell signal after all?

You can instantly discover whether now is still a good time to invest in stocks by becoming a Smart Money Member.

We're also having a buy-one-year, get one free special (ending soon).

Learn more here >>

Trade smart,

Dan “Prince of Proof” Murphy