Stock Market to Top Out, Financial Report by Leading Financial Newsletter Profit Confidential

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This earnings season, Mitchell Clark, contributor to Profit Confidential, believes the results will signal a top to the stock market. Clark believes this earnings season is going to be the catalyst for the stock market’s near-term direction, which is most likely down.

stock market to top out, financial report by leading financial newsletter profit confidential

Stock Market to Top Out, Financial Report by Leading Financial Newsletter Profit Confidential

In my view, the stock market is likely to top out this year, so I’m not a big advocate of taking on major new positions.

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This earnings season, Mitchell Clark, contributor to Profit Confidential, believes the results will signal a top to the stock market. Clark believes this earnings season is going to be the catalyst for the stock market’s near-term direction, which is most likely down.

“In my view, the stock market is likely to top out this year,” says Clark, “so I’m not a big advocate of taking on major new positions.”

In the recent Profit Confidential article, It’s All About the Momentum—as Soon as It Slows, the Stock Market’s Done, Clark highlights that the recent trading action is more about a lack of buyers than outright selling.

“The key will be all about expectations. Since the fourth quarter of 2011, current expectations this earnings season are quite lofty,” says Clark.

Clark believes that the U.S. economy is coming due for another slowdown or recession and that there isn’t enough momentum currently for the U.S. economy to accelerate going into 2013.

“This earnings season, I’d be happy with no surprises,” says Clark. “The stock market doesn’t need corporate earnings to be surprisingly strong; only to show that there’s momentum in the numbers.”

Clark cautions that, with the BRIC countries slowing, it’s going to be equally difficult for corporate earnings to accelerate. “U.S. firms have padded their earnings over the last several years from strong international operations, particularly in Asia. This is changing now and so must investor expectations,” says the analyst.

Clark believes that, as soon as we get an earnings season that reveals slowing momentum, this market is done.

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.

To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.

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