💥 My MOST Important Video This Year—You Must Act NOW!!

0:00 Morgan Stanley just issued an urgent alert that could be the opportunity of a lifetime. Now let's over to Bloomberg where we find out why you need to act now as Morgan Stanley's Wilson says buy US stock dip after Moody's cut. And what we saw in overnight trading is futures went down and then all of a sudden buying came in. And I want to show you why this is such a huge opportunity. Because a lot of people would look at the equity markets right now and they're worried that the trade war is going to continue on, but the issue is stocks keep rallying. And there's a really big case of why we could see them even go up to new all-time highs. Investors should buy any dips in US stocks fueled by Friday's credit rating cut as a trade truth with China has reduced the odds of a recession. Now, this isn't just

0:47 Morgan's opinion. We've heard this from Goldman and Bank of America and other major investment houses that the recession odds have been diminished, that this trade war is going to come to an end and the economy is not going to feel a shock from it. Now, in reality, we know there's going to be a shock to the economy, but right now, the market's looking ahead and saying everything is a green light. The strategy sees a greater chance of a pullback in equities after the downgrade by Moody's rating pushed the 10-year bond yields above a key 4 and a.5% level. However, we would be buyers of such a dip, suggesting not only are they saying to buy stocks, they're saying to buy bonds. I think it might be a little early on the bond side. We'll talk about that a bit later. But let's focus on this opportunity on the equity side because right now

1:33 there's a lot of people short this market and despite the fact that there could be a shock to the economy, what's going to happen is people are going to get squeezed higher as the pain trade means stocks go up. An encouraging sign, Wilson said the corporate earning season seemed to have ended with no major impact from the uncertainty over tariffs. A recent pick up in profit upgrades also bodess well for further equity gains even if the coming months show slightly weaker trade data. And once again, this is the markets looking past what's going on in the real economy right now. Because remember, you want to buy stocks when the data and the events are at their absolute worst and sell them when they're at their best. Right now, what the market is suggesting is the worst is now behind us. But there's another big issue here. the biggest

2:19 buyer of stocks is back in in a big way. According to Goldman, we're now 90% of corporates are in their open period and they're estimating that the window ends in June 13th. So remember, you've got another month of corporates just buying stocks without any pause. We've had numerous conversation with corporates on planning for a sudden drop in stock price and planning for recessionary scenarios while still maintaining current buying trends relatively unchanged. And that's really part of the big story here is that the Corbasher buyback engine is online and it's back in a big way because if we strip corporates out from their buying pattern, you can see the equity markets dropped by 30%. And that was one of my concerns is are these corporates going to use the excuse of the trade war to

3:06 hoard cash? It appears not. So right now, not only there are a lot of people short, but you have the biggest buyer of stocks buying over the next month. And while we're respectful of this potential outcome, we think the probability that the market looks through such weakness and deems it temporary just went up because of the trade agreement with China. And remember, I also said that what we're going to see over the next couple weeks is deal after deal come through. Because what have we heard from consumers? Sentiment is plunging. And then what have we heard from President Trump and the White House is deals are coming through. They know they've got to get things done. When that happens, the market's response is going to be bullish. Meanwhile, Goldman Sachs strategist David Cost said he expects the Magnificent Seven Group of stocks to

3:51 resume outperforming the broader S&P 500 on robust earning trends. The cohort has slumped so far this year as investors dump pricey US stocks. But keep in mind, there's a reason people are going to come back and buy them. has everything to do with the buybacks. These companies, these tech companies are big buyers of stocks and they're going to come in and do a massive amount of purchasing. What you're going to see is a lot of fund managers who are short this market. They're going to look to get back in in a big way and they're going to go with the stocks that are seeing the biggest buyer from the corporate side. But something else that should be going up is your trading account. Back on April 24th, we told our CTA timer pro subscribers to buy uranium at the open. It's now up 15.55%. We think there's a whole lot more upside. I'm going to show you the

4:37 chart breakdown later at the end of the show. But if you want to trade against the machines and win, grab the links in the description below. Use a coupon code for your free 30-day trial. Now, let's turn to Bank of America where we look at their global fund manager survey. And what we find out is fund managers, well, they're going to be buyers as well. And what we found out, they've cut their cash levels from 4.8% now down to 4.5%. But they're still bearish enough to suggest the pain trade is modestly higher given positive US China trade war ceasefire. So what happened is fund managers thought the market was going to go down. They thought we're going to head into a recession. So they raised cash and they had pressure from their clients that wanted that to happen. And now what are we seeing? The stock market's going up. They're sitting on cash. That means their returns are going

5:24 to start trailing the market. Not good because that means they end up getting fired. watch them come back online and in a big way. And here's the argument. As we look at the global fund manager survey, we see that investor sentiment improved slightly in May from a Vbe bearish April level. And you can see if we look back at the past when we see fund managers are seeing their sentiment, it's a big buying opportunity in the market. And if we look at recession expectations, what we find out, they've also peaked. Now, we could make the argument that the odds of recession are much higher than the experts are suggesting. But they too are looking at the equity market and seeing prices go up. They think the trade war is going to end and things are going to somewhat normalize over the next three to six months. And that means in their

6:11 mind the recession odds go down. When that happens, cash gets deployed, fund managers play chase, and that again all bullish signals for the equity market. And here we can see US equity allocation from fund managers now the lowest since May of 2023. And again, what is leading the market higher? That's right, US large cap. And that means these fund managers are going to have to play chase because again, it's all about performance. And right now, they're underperforming. But they're not the only ones who are doing that. And when we look at the percentage of large cap stocks to outperform small caps, what we see is most fund managers expect the large caps to outperform. And again, we look back to the corporate share buybacks. And what do we see? These large tech companies, they're massive

6:57 buyers of the stock. And so what fund managers, they're saying, look, we think the large companies are going to outperform the small companies. And that's where they're going to deploy their assets. So when you start to look at the broad market right now, what do you see? The S&P heading up. You see the NASDAQ head up. You see semiconductors heading up. And who's going to be playing chase? Well, fund managers who have to deploy all that cash back in and quick. But as they said, they're not the only ones who need to play chase here. Hedge funds, well, they got a problem. They're massively short. The US fundamental long short hedge fund gross leverage ratio rose 3.1 points to 213.7%. this from Goldman Sachs who notes their net exposure remains very low and is likely any dip may be bought by the professional community as they scramble

7:43 to catch up with the market. Again, keep in mind hedge funds very performancedriven. They've got to keep pace. So, right now any dip, what Goldman is saying is they're going to be big buyers. And what did we see thanks to this Moody's rating announcement? Well, we saw a dip. And what happened in the markets? It got bought in a big way. So you look back to what Mike Wilson was saying from Morgan Stanley. He's like look this is an opportunity maybe a huge one to get in before all these pros do. What we could see is again the case the equity markets actually break out over new all-time highs. At the same time we see the economy continue to slow. Let's take a look at the hedge fund position here because when we look at gross versus net leverage we can see that gross leverage is going higher but net

8:29 meaning they are very short here. Well, they've got to unwind this because right now as a market goes higher. That's the pain trade. Well, not only they're not capturing those upside gains, they're getting crushed on their short positions. Here you can see the fundamental long short ratio. Again, these hedge funds massively short this market. And as it continues to go higher, they're going to have to play chase. But here's the great thing about this setup. It's not just corporates that are buying stocks. The machines are going to be massive buyers here as well. Let's turn to Goldman's CTA corner because over the next month and keep in mind what's critical about the next month is that is the window of corporate share buybacks before we hit the blackout window on the 13th. Goldman says buyers 49.65 billion of global

9:15 equities 31.56 billion into the US. So again as we're likely to see signs that the economic data is going to show that the market is cooling off. What we see here from Goldman is the machines are going to be buying on top of corporates buying. So now you put yourself in a position of a fund manager. You've got cash. You're trailing the market. You know, people will fire you if you don't play chase. What are you going to do? You're going to buy those big tech companies. What about the hedge funds? Again, they make money based on performance. They're short. They're going to have to play chase. Let's talk about the key pivot levels for the S&P 500. The most important one here being the midterm at 5742. I want to take a look at the chart of the S&P 500 here because you may remember couple Sundays

10:01 ago, I told you if we see a close or a break over this midterm level, you want to buy. In fact, I did. I put a bunch of money in semiconductors at that day. And what happened since we've seen the CTA's buying this market up and you can see today's dip by Moody's is actually been bought. We're in the green as of live trading right now. And this is important to understand because let's take a look at the S&P 500 ETF spy. What do we see? It's now above its six-month volume profile. Is setting up a run all the way to its all-time highs. Let's take a look at QQQ. What do you see? It's above its six-month volume profile. What is that setting up? A run to its all-time high. It was talking about semiconductors. We haven't heard from Nvidia yet, but what

10:47 we see again, it's rallying off a six-month volume profile. What this is setting up for, my friends, is a lot of professional money managers having to play chase here. And you may remember I asked you a while back, who's got this trade right, the pros or retail? Many of you said the pros are right. Turns out retail nailed this trade. Let's take a look at how the CTAs are positioned here because again, we talk about a fantastic opportunity that Morgan Stanley's identified. We agree with this because we can note there are only two conditions where we see CTA selling US equities and that's in a down market. Right now with the corporate share buyback blackout window at 90% and getting stronger by the day CTAs are buying in all three upside scenarios. That means they're going to continue

11:32 buying pushing this pain trade and those shorts until they're squeezed. And when you talk about how much equity CTAs need to buy, if we look at their broad positioning in US equities, they've got a lot to buy. Now, they're not going to be rapid buyers here. But remember, just according to Goldman, they've got 30 billion. That means there's a lot of other companies that have CTAs. They're going to be buyers here as well. So, you've got a lot of push from these systematic machines. They don't care about the economic data. They care about the trend. If trend and momentum go up, they are going to buy and they're going to chase this market up in a big way. Let's talk about overall systematic positioning. Let's pull in not just the CDAS, but we have the risk parity and the vault control funds here and all of them have sold off together. And what this is setting up is again the risk

12:19 parity and the vault control funds are going to join the CTAs and be buying this market. Let's talk about sell America's back as Moody pushes the 30-year yield up to 5%. But remember Mike Wilson said their buyers at this level as well. Debt servicing costs will continue creeping higher as the large investors both sovereign and institutional start gradually swapping treasuries for other safe haven assets. This unfortunately can create a dangerous bare steepener spiral for US yields further downward pressure on the green back and reduce the attractiveness of US equities because again there's this belief that the more debt we have that the government should pay a premium for it. But throughout history, we haven't seen that. Now, we did see it happen after the pandemic. Of course, the argument then is why did it happen? Well, I'll show you. But let's first

13:05 take a look at the chart because there's something I want you to really understand here is the more debt the government takes on or any government for that matter, the bigger impact it has on long-term economic growth. So the greater the debt of a government, the weaker the growth of the economy over the long term, which is why we see this exact relationship. And that is federal debt in blue. We can go back to the 80s and what do you see? It's on the rise. And if we overlay 10-year Treasury yields, well, according to these experts, what we should see is as debt goes up, rates should go up. But what happened? Rates went down. And what's important to understand here is interest rates are a function of growth and inflation expectations. So again, the more debt a government takes on, the less growth and inflation the economy

13:52 will experience. Now, what happened after the pandemic? Well, we saw debt skyrocket and we saw rates go up too. And why is that? Because everybody bought into the fact that we were going to see growth and inflation. But there was one big issue that was causing it. It was a stimulus. And that's gone. But let's take a look what happened after 2020. We can see the debt continued to go out of control and what happened? Interest rates went up. But for some reason, the debt continues to go higher. The experts want you to believe that means rates need to go higher. Despite the fact throughout history, we've not seen that relationship except for a few brief years. What the market is telling us, what the bond market is starting to tell us is the debt doesn't matter because it's too excessive. It needs to come down or it's going to hamper

14:38 long-term growth and inflation expectations for this country. Which is why we see the more debt, the bigger the deficits, the slower the economic growth. Over the long run, the erosion of safe haven assets, the treasury has implications for the dollar and foreign demand for treasuries and other US assets. And I could not disagree more with that because the notion that we're going to lose our safe haven status or that something else would be better is ridiculous. list. Do you know why? Because the Fed has the legal authority to buy every single T bill, note, and bond on the planet anytime they want. So, they could buy up the entire supply. So, the notion that they're going to lose their safe haven status is absolutely ridiculous. Now, the other comment they make is from foreign demand. Yes, foreign demand should come

15:24 down because what do we see from foreign demand? It's through global trade. And right now, at least in the short term, we know trade is going down. We know there's a dollar shortage. And then when that happens, what we see is particularly from foreign institutions such as central banks, they sell off their treasuries to raise cash to provide dollars to their financial system. But at the same time, foreign institutional investors, well, they've been big buyers of treasuries. Credit downgrades of the US government have lost political significance after the S&P downgraded the US in 2011 and there were limited if any repercussions. There's the issue here. Why you seen the equity market rally? because the overnight move down in the futures was an opportunity to buy for fund managers and hedge funds. How about the bond market? Well, what did we hear from Mike Wilson and Morgan Stanley? He said,

16:10 "Look, not aren't we saying we should buy equities here. We're saying to buy bonds here as well." The question is, what is the path to those yields going back down? At the moment, you can't really see it. Well, no, you can if you look at the right chart. Let's talk about growth and inflation expectations. What I've done with the blue line is I've averaged the consumer price index and real gross domestic product. There is the pair together against 10-year Treasury yields in red. And what do you see? A beautiful relationship between the two. Now, there's a problem since 2020. The market said, "Look, interest rates need to go up." The Fed said they needed to go up. And what have we seen from the real economy? Growth and inflation expectations have come down. We know due to the tariff shock, they're going to come down even more at some point. the Fed's likely to cut, but if

16:56 there's a reason why we're seeing rates where they're at has everything to do with the Fed. So now what you see from Mike Wilson, perhaps a generational perhaps a very important buying opportunity here in the market. One caused by of course corporate share buybacks. The second due to the machine positioning and then when you see fund managers buying every dip and hedge funds clearing out those shorts, we could make a case that the economy will continue to decelerate. All at the same time, we could see stocks hit new all-time highs. But if you're looking to make money in the markets, we could show you how to trade against the machines and win. Let's take a look at that chart of the uranium trade. And what we noticed is we see it formed a left shoulder ahead and a right shoulder. We told our subscribers after the breakout to buy on the open right here. That

17:42 trade now up 15.55%. You see that red line, that's a six-month volume profile. we get a close over that and now sets up a move to 30 because right now we see a little bit of a pullback. If it gets to 30, you can make the case why we could see a rally up to 33 and that's when of course we'll suggest that our subscribers tighten up their stop losses and look to exit their positions. Each and every day we look at the machine positions brought equity, bond, currency and commodity markets and we back tested when those signals hit so we know what their probability of success are and when we see it it publishes right into our hot list each and every day on page one. But in addition to that, you get the machine position across all the asset classes. You get the daily report. You get the tradeable signals. You get my opinion on

18:28 the best trades to take. We give you risk control levels and update them. You get a full tracking of trades and returns. A weekly update. And here's the best part. We're so confident that you can make money trading our report. We don't want you to put out a dime for your first 30 days. Grab the links in the description below. Use a coupon code for your free 30-day trial. And with that, I'm Steve Anne Meter. Thanks for watching. Thanks for being fans. Bye now.