Last year, I stuck my neck out and predicted the stock market would crash in October of 2019.
Of course, I was careful to hedge my comment saying I could be off by a few days or maybe even a few weeks. As it turned out, I was off by a few months.
But, my message was clear…
At the time of that prediction, the stock market was trading at an all-time high. So, my advice probably seemed a little crazy to a lot of folks.
Now though, considering the action in the market over the past month, preparing for a crash back then wasn’t such a bad idea.
Even back in October, market conditions were eerily similar to the conditions that led to previous stock market meltdowns – like what happened on Black Monday (October 19, 1987) and during the financial crisis of 2008.
I advised traders to prepare by raising cash, tightening their stop losses on trades, and maybe even adding some short exposure.
What we’ve seen in the market since then was the quickest and harshest decline from an all-time high ever. Prospective retirees had their 401(k)s virtually cut in half as the U.S. went on lockdown. And, the future for everyday investors has never been more uncertain.
That just goes to show: It’s usually better to be overprepared and early… than underprepared and scrambling when things turn south. Especially when it comes to black swan events like the COVID-19 pandemic – which almost nobody in the mainstream financial media saw coming.
But when it comes to this market crash, it’s not all doom and gloom.
You see, market crashes actually present big opportunities for those prepared for them. It’s not just the ability to profit on short positions as the stock market falls. It’s also the chance to take advantage of quick trade setups as the technical conditions flip-flop back and forth between extremely oversold and extremely overbought territory.
The stock market’s proverbial rubber band goes nuts in turbulent times. It stretches deeply into oversold territory. Then it snaps back violently, stretching just as far into overbought territory – where it sets up to snap back again.
The trading opportunities are enormous, plentiful, and fast. And, they can be hugely profitable.
Since the market topped out in late February, my readers have had the chance for gains of 111%, 127%, 144%, and more.
If you aren’t yet trading this market, now is the time to get started. With the right moves, you could make an entire year’s worth of returns in just a couple of weeks. Heck, you could even make back what you might have lost so far in this crash.
That might sound hard to believe. But, let me share something with you to prove it…
Recently a subscriber wrote into me. And what he said really stuck out.
Jeff, I closed out my position today as recommended.
This trade brought my trading account back to where it was before the crash. It also made up for some of the mistakes that I was making before subscribing to your service and reviewing your lessons. Thanks, and enjoy the Easter weekend!
What Clayton shows here is that if you’re bold enough to act when opportunities arise, you can completely mitigate the losses from the recent crash. And, I’d like everyone involved in this market right now to have a story like Clayton’s.
This is the best time in more than a decade to start trading. And if you use the technique that I’ve perfected for over 36 years… which my subscribers enjoy now, each week… you’re likely to outperform every panicking investor out there right now.
Best regards and good trading,
P.S. Last Monday, we launched my live-streaming Crash Course where I give you an “over-the-shoulder” style viewing of what I see before the market opens.
In this 10-part weekly series, I show you what’s on my radar and what moves I’m
anticipating in the market. And I’ll even share a few trade ideas to take with you into Monday’s trading session.
Now, the full Crash Course comes free with a membership to Jeff Clark Alliance – a bundle of all my trading advisories along with some extra features. But, I’ve made a special exception so that all my paid subscribers can access the first three sessions.
If you’re not yet a paid subscriber, the best way to get involved is through my options advisory, Jeff Clark Trader. In addition to those first three live sessions of Crash Course, you’ll also get an archive of training videos to get you started trading options, and monthly trade recommendations… all for $19 a year. Click right here to learn more.
Today in the mailbag, one reader joins Jeff Clark Trader…
I just subscribed to Jeff Clark Trader. What a great gamble for a beginner. Even if Jeff is completely nuts, I paid more for pizza and wings last night. Looking forward to our future together.
And another disagrees with Jeff’s recent essay…
Hi Jeff, I am inclined to differ with you in what you’ve just shared in this message. I believe if the market does not sell-off today, by the end of this trading session, it’ll actually continue going higher. Even in the face of all the awful news that’s been released recently, regarding the manufacturing sector and retail sales falling off a cliff, the 10-year yield rate is at 0.66% and crude oil is $20 or lower.
I’m not sure this is a free market any longer, but a managed and regulated market. The market’s not free to respond in a normal fashion the way it once did. I think it’s a very dangerous thing that’s happening.
I suspect the Fed is buying the market and keeping it propped up to give us the illusion that all is well, and have people keep their money in the market, as the fiat currency we use is being further debased as they print the dollar into oblivion. All the while, they’re hoarding gold and silver at astronomically low prices. A harbinger of bad things to come. Thank you for letting me voice my concerns.
Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at [email protected].