One of the first things I shared with you at the onset of our 10-Minute Millionaire journey is the importance of narrative – the overarching theme that propels the market.
And in the stock market, the current narrative is this: Investors have been optimistic – even confident – that the Trump administration and the Republican-led Congress will be successfully in achieving their “Big Three” initiatives:
- Cutting taxes – indeed, reforming the U.S. tax system.
- Slashing regulation – in effect, cutting costs for Corporate America while giving U.S. companies more room to maneuver.
- And boosting spending on infrastructure – a $1 trillion spending program that will fix the country’s roads, bridges and water systems, while creating jobs and giving the economy a needed jump.
Any news that supports this narrative causes stocks to rally. And any developments that threatens this confidence causes share prices to stumble.
Now there’s no denying that the Trump Administration has its fair share of “scare headlines” recently.
In the past few months, the Trump presidency has been hit with…
- Fallout from firing the former FBI Director, James Comey
- Republican “failure” to overhaul Obamacare
- New revelations coming out of the alleged Trump campaign ties to Russia
- And increasing worries over a possible impeachment.
Recently, many of the “pundits” have been quick to claim that recent Trump Administration “blunders” represent a change to the narrative.
But it’s just not true.
In fact, it’s just the opposite.
And I can prove it…
The Scandal Proof Narrative
Last Wednesday, the Standard & Poor 500 index had its single biggest one-drop of the past eight months as investors worried that the headline-fueled political turmoil may hinder President Trump’s plans to cut taxes, roll back government regulations and fulfill other aspects of his pro-business agenda.
Financial stocks, which had soared in the months since the election, declined the most as bond yields fell sharply. Bonds, utilities and gold rose as traders shunned riskier assets. The dollar fell.
To most analysts, that steep drop sounded like this near all-time-high market had come to a screeching halt.
And there’s no denying that the latest headlines ratcheted up the market’s unease.
In fact, the VIX index, a measure of how much volatility investors expect in stocks, rose to its highest level since April 13.
But as 10-Minute Millionaires, we’ve been on step ahead of the market the entire way.
You see, here is the one thing everyone else failed to realize…
After all the Michael Flynn scandals and overturned executive orders, Wall Street believes one thing above all – that the Trump administration will survive and the U.S. economy will thrive.
Immediately following Wednesday’s steep fall, the market immediately stablalized as investors shrugged off their concerns, and the market pivoted higher.
Here’s a chart that shows how this news ballet has played out over the past three months…
Now, that’s not to say that investors haven’t shown some impatience with Trump.
Whenever he’s veered off message about his “Big Three” initiatives, the market has retreated. But the market has shown repeatedly that all the momentum is to the upside.
And that proves one thing.
Our narrative is still firmly – and confidently – in place.
I’m not expecting this narrative to change anytime soon.
In fact, it’s what’s going to fuel the next leg of this rally.
More importantly, it’s what is going to fuel our next 10-Minute Millionaire trades…
You see, in a market that is at or near record highs – or can’t succumb to what trading pros call the “V-shaped” sell-off, we are in a market that cannot – and will not – go down.
Bad Reaction Means Good Results
When narrative-damaging news can’t drive the market down, it tells us something very critical.
It tells us that the underlying strength or buyer enthusiasm is still intact.
And that means that the market will continue to grind higher as long as the Trump administration and the Republican congress can avoid political distractions for even a few weeks.
And that spells out an incredible profit opportunity for us as 10-Minute Millionaires.
By listening to what the market is telling us – and ignoring the pundits or what the so-called “conventional wisdom” is saying – we’re able to tap into profits that can be downright staggering.
You see, understanding the market narrative, we can pinpoint, with incredible accuracy, where the biggest profit opportunities in the market are.
That alone slashes the amount of time you would spend weeding through stocks and sectors.
In fact, that timesaving aspect is a vital piece of why this system takes only takes a few minutes of your time to set up.
It takes the guesswork out of when and where you should invest in the market.
At the same time, understanding the key driver for the markets – knowing exactly where to strike – marginalizes risk.
That’s why understanding the market narrative is essential to our journey here at The 10-Minute Millionaire.
Because once we know and understand it, we can manipulate it to help deliver massive profit opportunities – propelling us toward millionaire status.
Fact is, stocks are in a long-term uptrend – and have been for some time, thanks to the “right” mix of technical and fundamentals.
And as long as this narrative of market optimism remains in place, we’ll continue to pick trades to take advantage.
Including our next millionaire-making profit opportunity which I’ll be sharing with you later on this week.
So stay tuned.
D.R. Barton, Jr.