Holy Moly, folks!
What is going on?
If you’re wondering why shares of Nvidia (NVDA) fell 10% yesterday…
Or why shares of UnitedHealth Group (UNH) opened 18% (!) lower today…
You’ll want to drop everything and watch my Emergency “Bull Crash” Summit now. You can watch a rebroadcast of my live event that just aired earlier this afternoon by clicking here.
I’ll show you exactly what’s happening.
And more importantly, what comes next…
I’ve been warning about this exact situation since early February. And now, unfortunately for many, we’re watching my thesis play out in real time.
To be frank, there will be pain to come.
But personally, I’m focused on the opportunities this strange situation is creating.
This isn’t the time to be a scaredy-cat…
It’s time to get informed, then act accordingly.
And there’s literally no time to waste.
That’s why I’ve hijacked my own newsletter today. It’s not the right time to comb through new “Super Bull” stocks…
Not with the Bull Crash that’s now underway.
So today, we’re turning our attention to what I believe is the most vulnerable corner of the market during this Bull Crash situation.
I also have a case study on UnitedHealth’s 20% share price collapse … just to show you how making returns of 100% … 200% … even 300% or more is possible in this type of market.
If you want a taste of what’s to come … read on.
Otherwise, you can get the full story on this Bull Crash immediately, here … and then come back to this email when you’re done.
Either way, I implore you to get up to speed today, before it’s too late.
Magnificent 7: The $14 Trillion Ticking Time Bomb
Here’s a hot take…
I think there’s a better chance of Nvidia (NVDA) shares hitting $50 next than hitting $150…
The stock is sitting just above $100 at the moment.
I know that sounds almost unbelievable — a 50% drop, from here?! And that’s after already sliding from $150 to $100 so far this year.
It’s certainly a contrarian call.
After all, everyone and their brother have been madly infatuated with Nvidia’s rise since the release of ChatGPT in November 2022, which pushed the AI revolution into the spotlight.
Plus, along with Nvidia, the so-called “Magnificent 7” have been seen by some as the “only game in town.”
No doubt, if you were underweight the Mag 7 in 2024 … you were almost guaranteed to lag the benchmarks.
But my prediction is that in 2025, it will be just the opposite…
You should be underweight or “short” these stocks if you want to sidestep the carnage of this Bull Crash or, even better, capitalize on it.
My Spidey senses told me there was trouble brewing in the Mag 7 as we came into the year…
I even released a presentation on February 5, which was somewhat of a precursor to the message in my Bull Crash presentation, which you can access today.
And a small group of folks have already had a chance to profit off the guidance I gave them — to the tune of 49% … 65% … 172% … and 220% … so far.
But get this: These stocks have deteriorated even further since then…
Just have a look at what my Green Zone Power Rating system has to say about these stocks:
While three of the Mag 7 had earned a “Bullish” rating before my February 5 warning, not a single one of them is rated bullish today.
That’s right, while the Nasdaq slowly slipped into bear-market territory between February 19 and April 4…
The Mag 7 stocks suffered dramatic declines in their Green Zone Power Ratings.
Nvidia’s rating dropped 13 points…
Google’s declined by 22 points…
Amazon’s tanked a full 31 points…
And now, well, I’ll say it again … there’s not a single “Mag 7” stock that rates “Bullish” on my system.
What exactly does that mean for what comes next?
Well, for one … I have 25-plus years of data that shows clearly how stocks rated “Bearish” or worse go on to lag the market’s return.
In other words, if the S&P 500 is up 7% or 8% on the year … stocks rated 40 or below may only average a return of 3% or 4%.
However, that’s during the “good” times.
During a more bearish environment, just like this Bull Crash scenario I believe we’re in now…
A poorly-rated stock is at a much higher risk of suffering an outright collapse.
Just consider what happened to UnitedHealth’s (UNH) shares this morning…
How to Make 300% or More, Overnight
Last night after the close, UnitedHealth reported earnings and utterly spooked investors by pulling their forward guidance — a concerning trend we highlighted last week when Delta Air Lines (DAL) and Walmart (WMT) did the same.
We had identified UnitedHealth in last Friday’s upcoming-earnings screen, as Wall Street analysts were forecasting the company to report a $1.32 increase in earnings per share (EPS).
However, my Green Zone Power Rating system had UnitedHealth’s stock rated “Bearish,” with an overall score of 36 out of 100.
The stock’s worst rating came from my system’s Value metrics, which in layman’s terms showed the stock was overvalued, or unjustly “expensive,” heading into the report.
Folks, I fully realize that an “expensive” stock can become even more expensive — I’ve long been a “momentum” trader!
But that mostly holds true during bull markets.
During bear markets, “bull crashes” and any other market environment that has investors on edge … well, then, it tends to be the most expensive stocks that get whacked the hardest, as investors come to realize their lofty expectations grew too unrealistic.
In fact, I show in my Bull Crash Summit how the value metrics of my Green Zone Power Rating system have flashed “warning” signs for the market’s largest and most beloved companies ahead of every major stock market crash of the last 25 years… just as they are warning currently of the Mag 7!
But back to UnitedHealth…
If you owned shares of UNH going into last night’s earnings call, you’ve already taken a significant hit. Unfortunately, I don’t expect this stock to be the last one to spook investors with earnings misses and withdrawn forward guidance.
So I implore you to prepare for what’s ahead…
To do your best to at least avoid owning stocks that aren’t rated “Bullish” or better by my system. And even better, to follow some of my tactical trades that aim to capitalize on the swift and sharp downside moves these “Bearish” and “High-Risk” stocks are poised to make as the Bull Crash gains steam.
What exactly does that mean?
Well, I promised to share a case study on UnitedHealth’s stock collapse with you.
Consider that shares of UNH closed at $585 last night…
The stock opened this morning at $481.95, down almost 18%.
And then … the stock has continued to decline this morning, trading as low as $448, or a full 23.4% off yesterday’s close!
Think about that…
One of our country’s largest health insurers has just lost nearly one-quarter of its value, practically overnight!
And if that can happen to a $500 billion health care company … who’s to say it couldn’t happen to any other U.S. stock, even the trillion-dollar Mag 7s?!
But again, as I said from the start…
While there will be pain to come … I’m choosing to stay focused on the opportunities this Bull Crash is creating.
Consider that the type of trade I recommend in my Max Profit Alert service can mint phenomenal gains (think: 100% to 300%, or more) … off moves like shares of UNH just made.
One such opportunity…
A trade that could have been made on UNH yesterday, for an initial investment of $2,475 … has turned into $11,215 today.
My friends, that’s a profit of more than 350% … all thanks to a single overnight move!
To be clear, I did not personally make this trade, nor do I recommend you make a bet against UNH at this point — the “easy” profits have already been had.
But I am strongly encouraging you to take this case study seriously. Take it as a demonstration of the tremendous profit potential this new market environment is offering open-minded investors who are willing to get informed and act accordingly.
As I mentioned, I’ve already helped many Max Profit Alert subscribers rake in gains ranging from 49% to 220% in the early innings of this Bull Crash…
I fully expect more to come, but the time to act is now.
Until next time…
To good profits,
Editor, What My System Says Today
