Episodes

On this week's Stansberry Investor Hour, Dan and Corey welcome Greg Diamond back to the show. Greg is a fellow analyst at Stansberry Research and editor of the trading advisory Ten Stock Trader. With nearly two decades' worth of experience trading and managing every asset class, Greg is an expert at technical analysis and interpreting market cycles.

Greg kicks things off by reviewing the inflection points he predicted last time he was on the podcast. He explains what these time cycles mean and how they've influenced his trading strategy this year. He also discusses the upcoming presidential election and how crucial it is for investors to put aside their biases. According to Greg, the market's wider emotional reactions to the election could present some fantastic buying opportunities...

Those emotions, they go in waves, right? It's not static. There's ebbs and flows. There's longer emotional reactions to some things and shorter emotional reactions to some things. But when you put all those cycles together, it gives you a blueprint almost... It improves my probabilities of saying, "Hey, look, if we get a low into the election, I don't care who wins. I'm buying it."... Generally speaking, the cycle is going to tell me on a broader perspective – a 10,000-foot level – what to expect.

Next, Greg breaks down famed trader W.D. Gann's technical strategies into simple terms. He emphasizes that the "why" in market cycles is not really important. What matters is whether history is repeating or not. Greg warns of cycle inversions, however, and points out that many charts and algorithms in technical analysis just reflect human emotion. Greg gives an example of this...

All right, Dan sits down and values a company. Well, how many millions of people around the world are doing the exact same thing?... What are the chances that all of those people come up with the exact same conclusion? It's zero. They're not. They're going to come up with different conclusions about how that market works. Well, what does that do? That creates volatility. That creates the emotion.

Finally, Greg talks about short-term trading versus holding stocks for the long term. He shares that this presidential election is the most excited he has been about trading since 2022. Greg foresees "an exceptional trading season" after a fairly boring start to the year. And he hammers home that investors should be careful of increased volatility for the next few months and possibly even the next few years...

The market doesn't like uncertainty. An election causes uncertainty... In the short term, that uncertainty is causing an emotional reaction among investors, and we saw it in the VIX [the CBOE Volatility Index]. And we're going to see it again.