Postcards: If The Selloff Accelerates... Only One Chart Matters (Or: How the Markets REALLY Work after 2010)

If you want to know why executives make so much money... you have to understand this basic market pattern that leaves so many retail investors in the dust.

Dear Fellow Expat:

I give away these Momentum readings for free every day.

These are the ultimate equalizer for retail investors against big, greedy institutions.

No guessing. No silliness. No chasing headlines from journalism majors who don’t understand finance.

When momentum goes RED, it aligns with the START of major net outflows in equity markets (read: there’s MORE HEAVY selling than buying). Could last a day… could last two months…

The reading also suggests that a major liquidity event is happening in major economies.

Best of all, it indicates that a very important pattern of behavior is on our radar — and a very profitable one.

Today – I’ll let you in on this secret.

Then, you’ll see the exact chart telling you when to load up on equities.

Listen up.

We’ve Seen This Before… A LOT.

The last time momentum went red across the board (all three readings) was March 7 - just before the Regional Banking crisis.

The markets sold off, we largely moved to cash, and we waited to reenter new positions.

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