Systems Provide a Key Edge in Volatile Markets “Good stocks bounce like fresh tennis balls.” If you’re a fan of Louis Navellier at all, you’ve doubtless read this phrase. Louis’ emphasis on only picking stocks with superior fundamentals means his picks are the ones investors rush into at times of extreme market volatility. And we’ve been a little volatile lately. I won’t rehash this week’s disappointing market news but at least the market seems ready for a relief rally of sorts as I write Friday morning. Some sort of relief rally is due in the tech space. Technology stocks started to get hammered in November. The NASDAQ is now down 29% since November 19 (as of Thursday). Emotions often take over during times like these. That’s why Louis’ quant-based stock picking system is more important than ever. This isn’t an atmosphere that lends itself to throwing a dart at a list of tickers and picking a winner. The list of winners is getting smaller. | ADVERTISEMENT Wall Street Icon: Can You Make Incredible Gains in This Market? You wouldn’t think it by listening to the mainstream press, but there’s a huge boom minting millionaires at rates that will make your head spin. Watch this video to learn more. | | | Consider this: Our friends at Bespoke are incredible market historians, and based on their data, the NASDAQ is gearing up for a big bounce. The NASDAQ has dropped 25% or more nine times in its history, with the index taking an average of 161 days to fall from its highs. It took a bit longer this time around, as it was 171 days from the November highs until May 9 when the NASDAQ slipped more than 25%. In the previous nine instances, a bottom was found in an average of 209 days—and the average drop at the bottom was 40.8%. Ouch. That’s the bad news. The good news is the NASDAQ tends to rebound strongly after declines of 25% or more. Now, the bounce won’t happen immediately, as the tech-heavy index has only posted positive returns in the following month 50% of the time. But after that, watch out. Three months after a 25% decline and the NASDAQ is up an average 11%. Even further out, the NASDAQ has achieved average gains of 20.4% six months later and 33.5% average gains in the following 12 months. It's important to note that these gains won’t be realized in a straight-up move. The NASDAQ will likely rebound, digest these gains and bounce back. Louis likes to remind everyone that good stocks bounce like fresh tennis balls, but it’s just as important to remember that bad stocks drop like rocks. As usual, our current earnings season bears this out. Most of Louis’ Growth Investor stocks rallied strongly in the wake of their better-than-expected results. Just this week, ICL Group Ltd. (ICL) jumped 10% on Wednesday after posting a 69% earnings surprise. 
You can see that after reporting positive earnings, the stock “bounced” like, well, you know… You can find out more about Louis’ Growth Investor service by clicking here. | ADVERTISEMENT “Godfather of Crypto”: Mark Your Calendar for 5/20 Next week on Friday, May 20, a HUGE announcement is set to influence thousands of crypto enthusiasts… Here’s what’s going on… | | | Although this volatility is likely far from over, Louis reminded his readers that market history says we will get through this… From his latest update to Growth Investor subscribers. Thanks for the trade not made… “Whoever talked me out of buying LUNA … thanks.” That was a quote from a respected crypto investor this week. I’ll spare his blushes by not naming him. If you follow cryptocurrencies at all, the LUNA drama has dominated the headlines. In summary, the crash came from LUNA’s link to TerraUSD, (UST) the algorithmic stablecoin of the Terra ecosystem. News came late Thursday that Binance would suspend perpetual contracts on the LUNA/USDT pair after lowering the authorized leverage to 8x. LUNA has dropped by more than 99% and resulted in millions of dollars in losses for investors. Here is how Ashley Cassell explained the debacle in our free e-letter dedicated to the cryptocurrencies space, New Digital World … It was a pretty cool experiment: Build a crypto (UST) that’s pegged to the U.S. dollar automatically – with an algorithm that rewards Terra’s investors (in LUNA) along the way. Then, when people complain that a stablecoin needs to be backed by more than just an algorithm… Start building a reserve of BTC! After all, bitcoin is “a completely auditable, transparent and decentralized digital asset,” as CoinDesk’s George Kaloudis noted at the time. The only problem – as we’ve been painfully experiencing these last couple days – is that if the algorithm fails to maintain the dollar peg… You’ve got to dip into those bitcoin reserves to try and fix it. And (Tuesday), the Luna Foundation Guard sold all 42,530 of its BTC. That’s $1.3 billion worth of selling pressure…in one fell swoop! All from what was “essentially an algorithmic margin call,” as one analyst put it in TechCrunch yesterday. Our crypto analysts, Charlie Shrem and Luke Lango never recommended LUNA. They use their own proprietary system – the multifactor altcoin grader (MAG) – to evaluate cryptocurrencies so they only invest in the best ones for subscribers to Ultimate Crypto. | ADVERTISEMENT Stock Market Legend: NOW Is the Perfect Time to Jump Back In If you’re worried about the perfect time to get back into stocks, you need to hear this message from one of America’s investing legends. Learn more here.
| | | More importantly, if an altcoin scores poorly, they recommend Ultimate Crypto subscribers avoid it like the plague. The result is they only invest in coins offering superior products or services in a large, growing marketplace, run by a strong management team. If you want to get in on all the positives of cryptocurrencies, but avoid investing in coins like LUNA, check out Ultimate Crypto. Enjoy your weekend | 
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