Greg Guenthner

In just a couple of short weeks, the third quarter will slip away for good.

Mark your calendar. It could be a doozy. In fact, my colleague Jonas Elmerraji says that third quarter earnings could be the main factor standing between the market and its next surge higher this fall…

“Most investors think of earnings season as a positive thing for stocks — after all, it’s the one peek at company performance that investors get each quarter,” Jonas says. “But with the exception of the earnings season that started this past April, earnings have either brought downward or sideways correction over the last year.”

S&P 500 Large Cap Index

For the past year, every period in between earnings season has ended higher than it started. The market even managed to hit new highs just before earnings season kicked off in July after dealing with a sharp summer correction…

“Next earnings season kicks off on October 8,” Jonas continues. “If the previous trend is any indication, stocks are likely to keep chugging higher between now and then, followed by some sideways consolidation.”

Prognosticators continue to beat the crash drums. But compelling evidence for a big downswing just isn’t out there right now. Jonas’ hunch that we’ll soon see the fear of missing out on the next big rally overcome the fear of getting caught in a crash seems much more plausible.

Remember, you have to give the rally the benefit of the doubt—even if we have to endure another choppy earnings season.

Just look at the carnage among the top-callers last month. In the blink of eye, we’re knocking on the door to new highs…

Regards,

Greg Guenthner
for The Daily Reckoning

Ed. Note: Whether new highs are right around the corner or not, you’ll want to be positioned to profit. Greg Guenthner offers his Rude Awakening subscribers the opportunity to do just that, ever single day. Sign up for free today, and start making huge gains no matter what the market does.

You May Also Like:


The Only Investing Rule That Matters

Greg Guenthner

Forget everything you've ever learned about the markets. There's only one investing rule you need to know right now—and it has nothing to do with what stocks to buy.

Greg Guenthner

Greg Guenthner, CMT, is the managing editor of The Rude Awakening. Greg is a member of the Market Technicians Association and holds the Chartered Market Technician designation.

Recent Articles

How to Invest in a Strong Dollar World

Chris Mayer

Our friend Jim Rickards and founder Addison Wiggin believe the dollar will soon meet its demise. Chris Mayer, on the other hand, thinks the dollar will only get stronger this year and next. We'll let you decide for yourself. In this featured essay Chris lays out his train of thought and a guide for investing in a strong dollar world. Read on...


“How to Get Rich” is Not How You’d Expect

Chris Mayer

The first thing you might notice about the life of Felix Dennis is that he devoured crack cocaine during massive orgies with hookers at his mansion. Yet despite his penchant for sex and blow, he admitted, "making money is the one addiction I cannot shake." And thankfully, he wrote a book about it. Chris Mayer explains...


Bitcoin: Buy Now or Forever Hold Your Peace

Chris Campbell

Bitcoin has been pretty quiet lately. But that doesn’t mean big things aren’t taking place behind-the-scenes for the digital currency. In today’s Laissez Faire Today, Chris Campbell pulls back the curtain and shows you how bitcoin is quietly slipping into the mainstream. He also shows you why now could be the time to buy now, or forever hold your peace. Read on…


Here’s the Market’s Next Hot Sector…

Greg Guenthner

According to my friend and fellow technician Ryan Detrick, The Russell’s quarterly win streak of 8 is the index’s best performance of all time—even topping two monster runs in the 90s. So if small-caps are slipping, where can you find the next hot sector? The answer might surprise you…


Maestro
Will The Swiss Vote to Get Their Gold Back?

Ron Paul

The Swiss gold referendum in November is far more important that many people realize. The outcome could quell or confirm doubts about the amount of physical gold available at the New York Fed. And that could send the price of gold higher by multiples. Dr. Ron Paul brings you up to speed on what's happening in Switzerland...