By Jeff Clark, editor, Market Minute I’ve been listening for it. But, I haven’t yet heard anyone utter the phrase, “Sell in May and go away.” The period between May 1 and October 31 represents what is historically the worst six months of the year for the stock market. Stocks don’t always fall during that time, of course. But any gains are far less than what are typically achieved during the best six months – November 1 through April 30. That’s why, as we approach the end of April, we usually hear Wall Street’s choir singing “Sell in May and go away.” But, the choir appears to be sitting it out this year. So, it’s up to me – the lonely voice of the Market Minute – to grab the microphone and perform a solo. SELL IN MAY! | Recommended Link | | “SHEEP BRAIN-20” Pandemic Is Next Coronavirus will end. But a new “epidemic” is just getting started… It’s “sheep brain” disease. And it could cause far more damage than coronavirus. “Sheep brain” is spread by the dangerous belief that government “stimulus” will solve real economic problems – with no dire consequences. Obviously, coronavirus is a serious health risk. But the $2.2 trillion stimulus plan poses an even bigger threat to your retirement savings. One independent research firm has discovered an alarming fact about the new bailouts. It turns out, politicians are dusting off an 87 year old plan developed during the Great Depression… The plan called for “unlimited” money printing as part of a radical scheme to make a more “fair and equal” society… But former congressional staffer Dan Denning says there’s a darker motive… A radical faction inside the government is using the current crisis to shove through a nightmare agenda that – if successful – could end financial freedom in America. There’s still time to protect your wealth. But this window of safety is closing. | | | -- | The stock market rally over the past six weeks has been phenomenal. At the high of the day yesterday (2920), the S&P 500 had recovered nearly 60% of February/March decline. It was perhaps the strongest, fastest bear market bounce we’ve ever seen. But, it’s still just a bear market bounce. And, like all good bear market bounces, it served its purpose to punish short-sellers who got too aggressive, and to coax bullish traders back into the market. Now, as we head into the seasonally weak period of the worst six months of the year, it looks like the perfect setup for the bear to hit the market with another swipe of its paw. And when that happens, we may enter the third phase of a bear market – where stocks fall even harder and take out the previous low – that I’ve been warning about. Take a look at this updated, long-term monthly chart of the S&P 500 plotted along with its 20-month exponential moving average (EMA)… 
As you can see, the S&P has rallied all the way back up to “kiss” its 20-month EMA from below. This is exactly what we were expecting to happen when we first looked at this chart earlier this month. We noted how bear market bounces in the early stages of the 2001 and 2008 bear markets brought the S&P 500 back up to “kiss” its 20-month EMA from below. And, a similar move this time around would push the index up to 2880 or so. We also wrote… That’s the area at which traders should look to exit long positions and start adding exposure to the short side. Because what follows is a brutal decline that takes out the “panic stage” low, and ultimately wipes out about half of the value of the stock market. In other words, as we head towards the end of April… sing it with me people… Sell in May and go away. Best regards and good trading, 
Jeff Clark P.S. As we head into the third phase of the bear market, this may be new to some traders… and it can be a hard and even scary adjustment. For this reason, I’ve started doing a weekly live-streamed Crash Course, where I give my subscribers a real-time, over-the-shoulder view of what moves I’m anticipating for that day, and the techniques that I’ll be maneuvering throughout the week. And, all of my paid subscribers can access the first three replays right here. But for the remaining seven sessions, Crash Course will only be available for members of my elite membership tier, Jeff Clark Alliance. Alliance comes with all of my advisories, and a few extra features – like a quarterly Q+A, this Crash Course, and more – exclusively to Alliance members. Click here to learn more. Reader Mailbag Today in the mailbag, Jeff Clark Trader subscribers Matthew and William share how they made a profit from Jeff’s recent recommendations… Hi Jeff, thanks for the XLK put trade. The market had adjusted a little bit, so I bought a similar strike price from your recommendation. I traded out the same day you recommended to sell and locked in a 46% profit. I’m looking forward to your next trade. – Matthew Hi Jeff, I wanted to thank you for the great recommendations recently. I was able to post a 100% plus profit on the XLF calls, and about a 55% profit on the XLK trade. Great recommendations! At the same time, I made a couple of trades of my own that were based on your recommendations like the BAC May 15 $22 calls, for a 60% profit. And I made a speculative call trade on XLK on Tuesday after selling your put recommendation, and sold it the next day for about a 50% profit! Thanks again. Keep up the great work! I really enjoy learning from your strategies and making my own trades as well as taking your recommendations. I was wondering what your thoughts are on GDX. It seems like a good time to start a small short position, but it also looks like it could keep rallying up. Thanks again! – William Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… Urgent Message From America's Most Formidable Investor (Ignore at Your Own Peril) The Japanese police consider Jeff Brown a deadly weapon – thanks to his black belt in an ancient form of karate. Even in the investing arena… Having Jeff in your corner can be dangerously lucrative. He called the top stock on the S&P 500 three out of the last four years. And some of his recent biotech plays turned out to be big winners – with gains like 432%, 332%, and 1,620% to date. But right now, Jeff is tracking another urgent situation bigger than any of these. It has all the ingredients to be bigger than anything else in his successful three-decade career. More importantly, it's set to play out in just a few weeks – as soon as July 1st. If you miss it, don't say you haven't been warned. Do NOT miss this. 
| 
没有评论:
发表评论