Is This a Bull or Bear Trap?

Plus: A Boost for Your Subscription [Image]( Thursday, July 6th, 2023   Too Much of a Good Thing By Matthew Carr   It’s easy for investors to fall into traps. And today might be one of them. Back in February I penned a piece, [“What a Bummer… Things are Going Great.”]( That’s the mantra of 2023. It’s a nightmare scenario where good news just keeps rolling in. An unwanted trend we even touched on in this morning’s Pre-Market Prep as well (so, be sure you’re on the lookout for those each trading day). Well, the “horrific” data we received that’s sinking stocks this session comes via ADP’s monthly job report. It was a truly awful scenario… private employers added a whopping [497,000]( jobs in June! That’s more than double what was anticipated. It also marked the largest monthly increase in private employer gains since July 2022. So, why all the negativity? Why a sea of red instead of fields of green? Well, in a normal year, this news would be celebrated as fantastic. Stocks would soar! We’d clap each other on the back and exclaim, “America is doing great!” But this isn’t a normal year… we’re at the tail end of a Federal Reserve rate-hike cycle. And the more good news we receive about the economy… about the jobs market… about rising wages and low unemployment… the longer the Fed’s sway on the markets will be in place. We all want the U.S. central bank to fade away into the background. We all want the specter of high inflation to finally be exorcized. But that’s not going to happen yet… at least not today. Here’s the deal though, don’t worry. Recognize that today’s brief pullback is an opportunity, not the beginning of the end. The markets have dipped on the ADP report this year and even closed lower on 11 of the last 18 nonfarm payrolls (which we’ll get tomorrow). But those dips were short-lived. They suckered in put buyers and bull-market naysayers… And it’ll likely happen again. Make Sure You’re Getting All of Our Free Market Recommendations Every Day When you’re hunting for financial news these days, you don’t suffer from a lack of choice. You’ve got cable TV mega-operations like Fox Business, MSNBC, or CNN. If the written word is your thing, there’s Barron’s, the Wall Street Journal, MarketWatch, and dozens of smaller outlets. And on social media, the number of “finfluencers” and “gurus” is literally uncountable. So, in 2023, whatever your age, demographic, ideological persuasion, skill level, or financial situation, it couldn’t be easier to find what you want to hear. Your own personal echo chamber. On the other hand, finding what you need to hear couldn’t be more challenging. We’re talking reliable, actionable information. This type of financial news – that’s worthy of your time – is rare. You won’t get actionable stock or trade recommendations from any talking head on MSNBC or Fox… They’d never put it on the line for you. Can you be absolutely sure that analysis you’re reading at Barron’s wasn’t written by someone who was an undergrad English major three months ago? And it’s too often a safe bet that popular stock-picking account your brother-in-law follows on Twitter is running some kind of pump-and-dump scam. But because you’re reading this, you’re ahead of the game. Money Morning is the internet’s leading independent source of free, actionable financial recommendations. And you can be sure those recommendations come from actual experts – people who’ve spent time in the trenches making and managing money. They’re not talking up their own book, either. We have strict, transparent rules about how and when our experts can buy the stocks and make the trades they’re writing to you about. These folks don’t cover up their losses. And they don’t blow wins out of proportion. As a Money Morning LIVE reader, you’re already getting around half of what we publish every day. But I want to make sure you’re getting unrestricted access to all those daily free recommendations.[Click here to go for a full, no-cost Money Morning subscription – that’s all you need to do. Once you click, you’ll be signed up for our full service. As always, it won’t cost you a dime – ever](   These Very Smart People Have Stopped Buying Stocks… Corporate insiders sell stocks for all kinds of reasons, but they usually only buy for one: They expect the stock to go higher. Of these insiders, CFOs are usually the ones to follow - after all, they have the best, clearest picture of the financial health of the company and any challenges on the horizon. There’s just one problem though… These folks have, essentially, quit scooping up their own shares altogether. [Here’s what that means…](   Probably Best We Don’t Ask ChatGPT to Regulate Itself… A law meant to monitor and ensure the fair use of AI as it pertains to hiring practices just went into effect in New York City. It is the first of its kind, and legislators in California, New Jersey, Vermont, and New York are drafting state-level laws geared toward the same focus. These underscore the new normal of AI regulation – as this technology continues to evolve, so too must regulators. And with global leaders claiming AI will pose a threat to humanity within the next two years, there will be more headlines like those from New York City moving forward. [That’s why Nick Black put together a list of popular AI stocks to avoid as regulatory oversight becomes an ever-present reality in the space…](   As Tesla Is to EVs, Microsoft Is to AI… Kleenex. Band-aid. Velcro. Xerox. Some companies are inextricably linked with the products they oversee – practically synonymous with the product itself. The recent shift from EV manufacturers to adopt Tesla’s charging standards further cements it as the main player in that industry. Well, AI has seen its own leader emerge, and while Microsoft will likely never overtake the term “artificial intelligence,” there’s no question it’s in pole position in this $15-trillion race. Of course, it’s no secret – this stock is one of the most heavily weighted in both the Nasdaq and the S&P 500. [But Matthew Carr says it’s far from too late to get a share of this company’s ascent – and he’s identified the ideal time and price to target your entry…](   Get More Money Morning Our experts offer special actionable investing and trading research to their subscribers every week [Subscribe Now]( [Image]( You are receiving this e-mail at {EMAIL}, as part of your subscription to Money Morning. To remove your email from this list: [unsubscribe here](. 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