Skip to content

Velocity Trader

Over the 64 trades in the model portfolio – 71.88% were profitable.

Velocity Trader

Global Trading Dispatch | Why the “Midterm Effect” Rules the Markets

1) Markets will remain trapped in a narrow range for months

2) A 20% corporate growth rate, a 2% inflation rate, and a 0% stock market return

3) These are numbers you never would expect to see in the same sentence

4) The six months going into a midterm has produced a feeble 1.4% gain since 1896

5) Buy the small dips and sell the small rallies for the foreseeable future

If I had a dime for every trading nostrum I have heard over the past 50 years I would be as rich as Croesus by now. And here’s a whopper for you.

A 20% corporate growth rate, a 2% inflation rate, and a 0% stock market return: These are numbers you never would expect to see in the same sentence.

Yet, that is what we have at the close today, believe it or not.

And what’s worse, this condition could last for another five months. It is clear that something is going on here.

For the past six months, my trading has been wildly successful betting that the stock market would go nowhere until the November 6 midterm elections.

While we have covered an awful lot of ground during this time with a very wide 3,300-point range in the Dow Average (INDU), we have gone absolutely nowhere. As a result, the Mad Hedge Trade Alert Service stands with a 19.83% so far in 2018.


—– Related —–

How to guarantee a comfortable retirement?

Grab this new book before the stocks researched EXPLODE…and you miss out!

Download Free Copy: Stocks to Buy for the Coming Roaring Twenties

Some call him the ‘founder of the modern day hedge fund’, and his prowess for picking stocks that fly under the radar is unprecedented.

In his brand new book and newsletter, you’ll get his latest explosive picks AND research that will give you the edge to make the trades that you’re truly seeking!

This is free, and includes free in-depth newsletter research.


It turns out that trading around midterm congressional elections is far more successful than any other market traditions, like “Sell in May and go Away.” Call it the Midterm Effect.

Since the Dow Average was first created on May 26, 1896, the six months going into a midterm produced a feeble 1.4% gain, while the six months after hauled in a whopping 21.8% increase.

In fact, “Sell in May and go away” only works because of the enormous cyclicality of the Midterm Effect, which takes place only every four years. The other three years of that cycle are usually pretty wishy-washy or go the opposite way. Here we are in mid-May, and so far, the Midterm Effect looks pretty good.

The effect only works for midterm elections. It is much less predictive than the Presidential Election Cycle, another popular piece of folk wisdom.

The reason the Midterm Effect works so well is because of human psychology. Investors absolutely hate uncertainty. They are much more inclined to sit on their hands and do nothing ahead of a major market moving event even one 10 months away, when we entered the current range.

They would much rather pay a premium after an event for any securities they might buy rather than being wrong. Money managers tend to be a conservative lot, and this is how conservatism works.

The outcome of the election would have an enormous effect on corporate earnings. According to PredictIt, an online betting site, there is a 67% chance that the Democrats will take the House in November.

If that occurs, no major changes to the economy nor laws pass for at least two years. If that doesn’t occur, the president will have a free hand to pursue his existing policies unfettered. However, the election is not for another five months, and in politics that could be five lifetimes.

So range trading it is. Buy the small dips and sell the small rallies for the foreseeable future. Wake me up around Halloween.

Contents

  • 1 THE SPECIAL OFFER
  • 2 Watch The Latest John Thomas Webinar Here

THE SPECIAL OFFER

Watch The Latest John Thomas Webinar Here

Author John GladstonPosted on June 14, 2018June 14, 2018Categories Mad Hedge Technology LetterTags best options strategy, explain options trading, Free Global Trading Dispatch, Global Trading Dispatch, Global Trading Dispatch Blog, Global Trading Dispatch Coaching Program, Global Trading Dispatch Coaching Program and Trading Service, Global Trading Dispatch Coaching Program Review, Global Trading Dispatch Download, Global Trading Dispatch Forum, Global Trading Dispatch Free Download, Global Trading Dispatch Program Review, Global Trading Dispatch Review, Global Trading Dispatch Reviews, Global Trading Dispatch Scam, Global Trading Dispatch Service, Global Trading Dispatch Warrior Forum, John Thomas, John Thomas Mad Day Trader, John Thomas Mad Day Trader Review, John Thomas Mad Day Trader Scam, John Thomas Mad Hedge Fund Trader, John Thomas Mad Hedge Fund Trader Review, John Thomas Mad Hedge Fund Trader Scam, learn to trade options, Mad Day Trader, Mad Day Trader Review, Mad Day Trader Reviews, Mad Day Trader Scam, mad hedge fund, Mad Hedge Fund Trader, mad hedge fund trader performance, Mad Hedge Fund Trader Review, Mad Hedge Fund Trader Reviews, Mad Hedge Fund Trader Scam, Mad Hedge Technology Letter, Mad Hedge Technology Letter Discount, Mad Hedge Technology Letter FAQ, Mad Hedge Technology Letter Inside, Mad Hedge Technology Letter Login, Mad Hedge Technology Letter performance, Mad Hedge Technology Letter Price, Mad Hedge Technology Letter Real Member Review, Mad Hedge Technology Letter Review, Mad Hedge Technology Letter Reviews, Mad Hedge Technology Letter Scam, Mad Hedge Technology Letter User Experience, option trading, option trading strategy, options trading, options trading newsletter, options trading strategies, options trading tips, options trading webinar, stock options trading, Stocks to Buy For The Roaring Twenties, Understanding Options, understanding options trading

Post navigation

Previous Previous post: Gold & Silver For Life Review
Next Next post: Kyle Dennis Option Rocket Strategy First 100% trade and members cash in
Velocity Trader > Mad Hedge Technology Letter > Global Trading Dispatch | Why the “Midterm Effect” Rules the Markets

Tags

  • charts
  • Dow Jones
  • ETFs
  • GS
  • Jeff Bishop Review
  • learn to trade options
  • markets
  • NASDAQ
  • Option Rocket Kyle Dennis
  • Option Rocket Review
  • Option Rocket Reviews
  • Option Rocket Scam
  • options
  • Options Rocket Kyle Dennis
  • Options Rocket login
  • Options Rocket Review
  • Options Rocket Reviews
  • Options Rocket Scam
  • Options Rocket User experience
  • Options Rocket user review
  • Options Rocket webinar
  • Options Rocket website
  • options trading
  • options trading newsletter
  • options trading strategies
  • options trading tips
  • options trading webinar
  • option trading
  • option trading strategy
  • Russell
  • S&P
  • SPX
  • SPY
  • squeeze
  • strategies
  • trading
  • understanding options trading
  • VIX
  • Weekly Money Multiplier
  • Weekly Money Multiplier login
  • Weekly Money Multiplier Real User Review
  • Weekly Money Multiplier Review
  • Weekly Money Multiplier Reviews
  • Weekly Money Multiplier Scam
  • Weekly Money Multiplier User Experience

Elon Musk SAV

One Percenter

Warrants

Teeka Tiwari's Investment of the Decade

Teeka Tiwari's Investment of the Decade

Buy This One Stock in 2021

Recent Posts

  • Teeka Tiwari: Tech Royalties Can Supercharge Your Profits
  • Elon Musk’s New Project S.A.V. Will Shock America (Watch Demo Here)
  • Jeff Brown Investment Accelerator Summit: Here’s Why Tech Is Moving Faster Than Ever
  • Dr. Kent Moors Sigma Trader: Three New Sigma Surges Live NOW (2021)
  • Teeka Tiwari Freedom 2021: How Anyone Can Turn $100 Into $150,000

Top 7 Trading Resources

Best Trading Advice

Steady Income Investments

Crypto News

Options Trading Strategies

Top Marijuana Stocks

FREE Trade Alerts

Best Blockchain Stocks to Buy

Velocity Trader Proudly powered by WordPress