Why Stocks Could Still Soar From Here

In September, my True Wealth Systems computers did something rare… They flashed “sell” signals on nearly every system-based investment we track.

What did I do? I listened!

We sold the majority of our open positions in True Wealth Systems.

[ad#Google Adsense 336×280-IA]And it might surprise you to hear me say this with nearly everything in “sell” mode, but I don’t think the great bull market is over yet.

There are too many big-picture reasons to believe stocks could still go much higher from here.

In fact, we’ve been through this all before, back in 2011.

Let me explain…

The more I dig, and the more numbers I dissect, the more it seems that we could be in the middle of a small to intermediate correction – on the way to much higher stock prices.

Today we’re seeing the same pattern we saw during the 2011 correction.

Take a look at the chart below. It shows the S&P 500 during 2011…

Stocks crashed in late July and early August. They then entered a volatile period for the next two months. They tested August’s bottom before finally making a new low in early October.

Then the game was on. Stocks began a new uptrend and didn’t look back for four years…

Buying just about anything during this period would have led to hefty profits.

Now, take a look at this chart of the S&P 500 in 2015…

The similarities between today and 2011 are striking.

The S&P 500 crashed in late August. It has tested those lows after bouncing violently since then.

If this is “2011 all over again,” we’ll likely see more volatility and a new low in stocks before a new uptrend kicks in.

Of course, we can’t know if this is how things will play out. But history is our guide here – and it says higher prices are entirely possible.

Again, I’m happy to follow my stop losses and sell when I need to. But I believe the opportunity in stocks is for higher – not lower – prices from here.

Good investing,

Steve

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Source: Daily Wealth