Yes, I know the global market looks weak... Yes, I know the Euro
could collapse... Yes, I know that the employment picture for the
United States looks bleak for months to come. And, yes, I know that
most investors are looking for opportunities to sell. Which is
precisely another reason this could be the right time to buy. If
you have ever wanted to play to role of a contrarian , now just
might be your best opportunity in years.
So, as they say... Now is the time to back up the truck... for
tech. This is an opportunity you do not want to miss.
And one of the better ways to play tech is to trade the Nasdaq, the
listing home of myriad technology stocks. How big could the move in
the Nasdaq be? No one knows for sure, but my time-cycle chart (see
below) for the Nasdaq is indicating the possibility for at least a
+20% move higher, with the chance for much more. But... and this is
important... this run to the upside looks to end on July 1. This
means we have a month and a half to potentially clean up.
I've already identified a few individual tech stocks that I believe
will be big winners. These top-ranked picks are covered in this
week's issue of my premium service,
Mastering the Markets
. However, if the Nasdaq itself rises, my
Trade of the Week
could deliver potentially substantial gains in the coming weeks.
Before I tell you about this week's pick, though, let's take a look
at my cycle forecast model of the Nasdaq...
We have gone back in time (nearly nine years) and found a group of
time-waves that have almost exactly mapped to the Nasdaq's
historical tops and bottoms. Then we constructed a composite time
wave that we use to forecast future movements in the index . This
"actual time wave" is telling us that all of the historical time
waves are lining up at this particular time in history in such a
way that -- if we do not encounter a major one-off event -- the
Nasdaq will "want" to move higher... maybe a lot higher.
Do I think the Nasdaq will be moving higher by nearly +50% to 3,300
by the end of June? No, but this chart gives me confidence to
predict that the Nasdaq may move appreciably higher from where it
closed this past Friday. I believe a +20% gain is certainly
My trade of the week is an exchange-traded fund (
) that largely mirrors movements in the Nasdaq index...
By most traditional measures, the
won't make anyone's hit parade at the moment. In fact, my own
ranking system gives this security a composite score of only nine
out of 200. However, my CycleProphet forecast is too compelling to
pass up. This is exactly the type of trade I look for when I want
to play the role of contrarian.
Editor: Mastering the Markets, Trade of the Week
Disclosure: Mike Turner does not own shares of any security
mentioned in this article.