Here’s everything you need to know about the stock market today, including the best stock to invest in, the latest stock market news, and even some tips on how we are turning $2,500 into $10,000 over the next month. The stock market today presents some incredible opportunities to 4X your money over the next month. If you want to know how to invest right now and the best stock to buy right now, you need to understand the how the latest share market news is affecting stocks. This video has everything you need to know about the stock market this week to help you find those multibagger stocks to buy now.
After the amazing rally in the stock market over the past two weeks, some incredible opportunities to make money have presented themselves. I’m going to show you how you can 4X your money this month, how you can turn $2,500 into $10,000 this month. I’m going to show you how to invest in the stock market this week. I’m Stock Curry, I’m a former Merrill Lynch and Morgan Stanley investment banker. I have over 25 years of trading experience, and my team has made some of the most incredible progress you will ever see in the stock market.
Over the past few months, we have turned $2,500 into 10,000. We’ve turned $1,000 into $5,000. We’ve even turned $25,000 into $100,000. And we are going to show you how to do it. Now later on, I’m going to give you an opportunity to actually follow along and copy our trades. Right now, I want to talk about what’s happening in the stock market this week so that you can understand how we are going to be trading and how we’re going to be making money.
Over the last two weeks, the stock market has absolutely rallied, with the NASDAQ up almost 10% in just two weeks. In just two weeks, the NASDAQ has recovered almost all of the losses from the past four months. Now this is unheard of. This is unprecedented for the NASDAQ to rise 10% in just two weeks, for the NASDAQ to have recovered four months worth of losses in just two weeks. This is incredibly unrealistic, and some people might even say unsustainable. However, the bullishness cannot be denied.
Now, you might be thinking the easy answer is we’ll just buy stocks, buy mega-cap tech stocks, just buy anything because the whole market is rallying. And I would forgive you for understanding that, because a lot of people think that at first glance, that makes a lot of sense. But if we look at the CNN Fear and Greed Index, shockingly, it’s still in fear, meaning despite the massive rally over the past two weeks, investors are still bearish. Now yes, after the rally over the past two weeks, market momentum has gone above the 125 day moving average, turning to greedy or bullish. That’s obvious. Clearly the momentum in the market is bullish.
Now some people would say the trend is your friend, trade with the trend, the trend is currently bullish, and that’s what you should do. And in most cases I would absolutely agree with you. But don’t forget the last part of that saying: The trend is your friend – until it’s not. Eventually trends get broken. What really concerns me right now is that stock price strength is still in extreme fear. That it is still extremely bearish. If you look at all of the stocks in the stock market, all 9,000 of them, there are far more stocks hitting 52 week lows than there are stocks hitting 52 week highs. You can see this in stock price breadth which is still bearish. The majority of the stocks in the stock market are dropping, with only a few stocks rising. In fact, the overall market is so bearish, that options traders are still buying more put options than call options.
So what’s going on? How is it possible for the stock market to have one of the biggest rallies in years, and yet market traders still remain bearish? Are they just behind the times? Are they late? Have they not yet caught up to reality? It’s very possible. After all, it does take a long time for market sentiment to change. Very often traders remain extremely bearish at the bottom of a market, and they remain extremely greedy at the top of a market. And we just came out of a period of extreme fear, so it would make a lot of sense that the rally that started over the past two weeks will in fact continue, and it will continue to go up.
As I’ve said in previous videos, October normally marks a bottom to the stock market and normally initiates an eight month rally in stocks. So history is certainly on the side of bulls. There is certainly a very good bull case for the stock market to start an eight month rally with what happened over the past two weeks being just the very beginning of it.
So is the stock market rally about to rev up? Well investors are certainly embracing stocks and starting to eyeball a year end rally in the stock market. FOMO is back in the stock market. FOMO is the fear of missing out. And this is when investors and traders, they see stocks running up, and they rush in to buy stocks out of fear of missing out on an even greater rally. A lightning fast rebound has driven the S&P 500 up nine of the past ten sessions and up 7.2% over the past two weeks.
So what’s behind the market’s sudden U-turn? Well, stocks and bonds got a double boost from Washington earlier this month. The Treasury increased the size of longer term debt auctions by a smaller amount than many had expected, and the Federal Reserve hinted that it likely will not raise interest rates again this year. Now in a prior video titled, “The Epic Short Squeeze That’s Causing Stocks to Rally“, I explained how the bond market is actually causing the stock market to rally.
So there are certainly a lot of very good reasons for the stock market to rally right now. This is not some rally that’s just built up on hype that makes no sense and might fall back down. This rally actually has a lot of legs behind it. It’s a very solid rally. There’s not a lot of reasons to believe that the stock market rally is going to end. However, that does not mean that the stock market just goes up forever. As you know, if you’ve invested for any length of time, as the market goes down, it zigzags down. There are periods where it will go down and then up a little bit, and then down a little bit more, and then up a little bit. And as the stock market goes up, it zigzags up. There are periods where it will rally up, and then it will have a little bit of a pullback, and then it’ll keep going higher.
And I do think the market is poised for a little bit of a pullback. After all, the market normally goes up 10% in an entire year. We just don’t see the market go up 7%, 8%, 9% in a two week period. So this rally really needs a little bit of a pullback before I would consider a healthy continuation of the rally to continue. So the traders that I work with, we are looking for a little bit of a pullback this week. And again, in the exact same way that the rally had a lot of legs and a lot of really good reasons for the stock market to go up, there’s also a lot of really good reasons for a little bit of a pullback this week.
Before we continue higher in the coming days, investors will parse the latest round of inflation data when the Consumer Price Index (CPI) and Producer Price Index (PPI) inflation figures are released on Tuesday and Wednesday. Keep in mind that part of the reason why the stock market rallied over the past two weeks is because people believe the Federal Reserve is done raising interest rates. And that would have to get backed up by inflation continuing to come down. If there are any indicators that inflation is not continuing to go down, but in fact is turning around and starting to go back up, and those indicators might come out on Tuesday and Wednesday, that could cause the rally to stop and have a bit of a pullback as investors fear that the Federal Reserve might in fact raise rates once again.
But the biggest thing that concerns me right now is the fact that The Magnificent Seven – that is Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla, and Meta – have all played an outsized role in this year’s rally. Those seven stocks alone are responsible for most of the S&P 500 advance. And this is exactly what we saw in October of 2022 through about March of 2023. During that six month period, we saw seven stocks in the stock market rally, while the remaining 9,000 stocks remained near all time lows.
And unfortunately we are seeing that once again. Outside of the S&P 500, where 25% of the index is made up of the big mega-cap seven stocks, and outside of the NASDAQ, where 50% of the NASDAQ is made up of the big mega-cap seven stocks, if you look at a more generalized overall view of the market, you will find that the market is still near the October 2022 lows. In fact, if we look at the Russell 2000, which is made up of 2,000 of the over 9,000 stocks in the market, you will see how we are still trading very close to the October 2022 lows.
So if you’re going to be bullish this week, you have to be very selective with which stocks you buy. You can’t just buy any stock and expect it to go up, because most stocks are still going down. So if you want to be bullish this week, you want to buy stocks, I would recommend the top seven, The Magnificent Seven. The Mega-cap tech stocks are the ones that are most likely to continue to rally, because those are the only stocks, for the most part, that have started to rally. And yes, there are a few meme stocks that have gone up, such as Palantir, that people are buying because they think they’re going to be great companies 50 years from now. But generally speaking, outside of a few select small cap stocks that are rising, mostly it’s just the mega seven that are rising.
So if you’re going to be bullish this week, I would definitely recommend you limit yourself to those seven companies, and maybe the S&P 500, or the NASDAQ, since a large portion of those indexes are made up of the top seven companies. But outside of that, I would be very cautious about being bullish on the market this week, because we do have a lot of things that could really push the markets down, especially the banking sector and the finance sector, which will really start to hurt both the Dow and the Russell 2000.
One thing that’s really bad is the fact that Moody’s has cut the US outlook to negative, citing deficits and political polarization. Now I want to be clear. This does not mean that the US credit rating has been downgraded. What this means is that the US credit rating is now potentially going to be downgraded. Now the last couple of times the US credit rating got downgraded, we have seen some fairly significant drops in the stock market. The first time it happened, the stock market fell by 30%. The second time it happened, the stock market fell by about 10%. So any actual downgrade in the stock market could really put downward pressure on the banking sector, which in turn could really hurt the Dow, which is made up of a lot of the larger banks, and the Russell 2000, which is made up a lot of the regional banks. Keep in mind that Moody’s, Fitch, and the S&P have all said that they are looking at downgrading the US credit rating, as well as downgrading a number of large banks.
And one of the reasons they are looking at a possible downgrade is because the Federal Government, now for many months, has been on the virtual edge of shutting down. And unfortunately, the next deadline to avert a shutdown is just one week away. House Republicans over the weekend unveiled their plan to avert a government shutdown next week. House Republicans on Saturday unveiled their stop-gap funding bill to avert a government shutdown set to begin next weekend. But with just five legislative days left until the deadline, Congress has very little room for error in order to get this bill passed.
Now, I want to be clear this is not a new government funding. This really doesn’t solve any problems whatsoever. All it does is kick the can down the road. This essentially is telling Congress, rather than shutting down the government next week, let’s just ignore the problems and come back and take another look at it next year. Under this to stop-gap strategy, several spending bills needed to keep the government open would be extended until January 19th, while the remaining bills would be extended until February 2nd. The plan is designed to avoid a messy shutdown right before the holidays, but it remains to be seen if the plan can pass the House, much less the Democratic controlled Senate, which has already dismissed the two tiered approach.
Now, I don’t want to strike too much fear into you about what this might mean. The government has shut down many times in the past. Stocks will usually fall after a government shutdown. I think the biggest fear this time around is not so much stocks falling because of a government shutdown, because very often after the government reopens, stocks rally and just recover all of their losses. I think the bigger fear this time around is the fact that with Moody’s, Fitch, and the S&P all warning of downgrades should the government shut down, this could have a very significant negative effect on stocks, which could really hurt the Dow and the Russell 2000. And as a result, this really has a lot more of a long term negative effect on the stock market this time around than it has in years gone by when the government has shut down. So my fear of a government shutdown really has to do with the downgrade of the banks, not so much the actual government shutdown.
Regardless, because we are approaching a deadline for government shutdown, and everybody knows how bad this would actually be for the banking sector, this could cause a sell off in stocks. This week, however, Congress almost always comes up with a last second bill to avoid a government shutdown. Normally that bill will get agreed upon over the weekend. So while stocks might sell off this week over fears of a government shutdown, over next weekend as Congress gets everything figured out and avoids a shutdown, stocks will usually continue their rally in the week after.
So I do expect more of a long term rally in stocks, while I also expect a one week pullback in stocks. A downturn this week, followed by a longer term rally – that’s how I plan on playing it. Now, there are other opportunities in the market which I’m going to show you in one second. First, I just want to talk about how you can follow along with our trades.
One of the best traders I know – his name is Ammar – he is starting a small account challenge. He’s going to try to turn $2,500 into $10,000 over the next month. Now, keep in mind I told you about another challenge where another incredible trader I work with – his name is Ace – he did a small account challenge where he attempted to turn $1,000 in a $10,000. That portfolio is now over $7,000. In the last month and a half, he has turned $1,000 into $7,000, and now he’s going for $10,000. But don’t worry, you didn’t miss out, because next week we’re starting another small account challenge where we are going to try to turn $2,500 into $10,000 over the next 1 to 2 monthsd.
If you want to get in on these trades, you want to see what trades are making, you want to join us in the challenge, you want to make this kind of money, come join us over at Stock Dads. We’ll show you all of our trades. You can copy the trades and follow along. We have daily live trading, and if you need to learn how to actually trade and invest in options, we have courses over there to help you learn. So come join Stock Dads. You can find out more about Stock Dads on the Discord Trade Alerts page.
All right let’s talk about the final trade idea I’ve got for you guys – and this one is a banger. In case you missed it, Bitcoin is up 120% this year, rising from $16,000 all the way up to $37,000 over the past 12 months. Now even though I’ve been investing in Bitcoin and I’ve invested in some bitcoin stocks such as Mara, Hut, and Riot, I haven’t really talked a lot about it on this web site, but I want to tell you about it now. Obviously Bitcoin is a great investment, Ethereum is a great investment, and even the altcoins are starting to rise. There are so many opportunities to make money in crypto right now, and I personally have more of my money in crypto stocks than I do in actual crypto.
Some of the stocks that I actually own and that I’ve got call options on include MARA, HUT, and RIOT – three incredible mining companies that I would expect will absolutely rally as crypto continues to rise. Keep in mind that when you invest in crypto mining stocks, you actually get a leverage on crypto itself. Very often, if crypto goes up 50%, the mining stocks might go up as much as 400%. So that is why I’ve got more of my money in crypto stocks than I do in actual crypto. That’s my last trade idea I’m going to leave you guys with. Come join us over at Stock Dads. I can’t wait to talk to you, meet you, and help you make a ton of money.