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For weeks, I’ve been posting a warning in The War Room each morning.
It began at the end of September, when I posted this…
Dow’s Weak September ’26: Historically speaking, the Dow Jones Industrial Average has averaged a 1.1% decline in the month of September. This year, it fell more than 4%, far worse than the historical average.
What’s worse, more S&P 500 stocks were setting 52-week lows than 52-week highs while the index sat within 2% of a record high. That hasn’t happened since the dot-com bubble.
If that’s not troubling enough, consider another key metric…
One of the most telling signs of the market’s health is the number of companies setting new highs versus the number setting new lows.
Three weeks ago, I noted how this skew had moved decidedly into “new low” territory, which (to me) served as a warning that more selling could be on the horizon.
This past week, that trend continued… and the “new low” column keeps expanding.
Here’s the updated breakdown:
And here’s what makes this so strange. On Tuesday, the S&P 500 closed at a record high. But even on a record day, the NYSE printed nearly twice as many new lows as new highs.
On Wall Street, we call that the generals marching without their soldiers, and that’s not a parade I want to be standing in front of.
With so many more companies setting new lows than new highs, it solidifies my feeling that market sentiment is shifting over to bearish, which is why I’ll continue to be cautious in our trading and positioning.
For most buy-and-hold investors, this is a “Red Siren” warning.
But for traders like us, it could mean BIGGER profits.
You already know how powerful this system is, and we’re entering a perfect storm to take it to the next level.
Next week, I’ll be hosting an event called “The Boiling Point,” where I’ll detail exactly how to turn these coming volatility events into overnight profits.
Sign Up For This FREE Event Now!
October has a scary reputation on Wall Street. The crashes of 1929 and 1987 both hit in October, and the week ending October 10, 2008, was the Dow’s worst week since at least 1901, with an 18.2% loss.
But according to the Stock Trader’s Almanac, October has also been a “bear killer,” turning the tide in 13 post-WWII bear markets. Maybe it’s not so scary after all.
