Jeff Clark’s Market Minute: Why I Set My Humility Aside Yesterday

Humility is a common characteristic of successful traders I know

This stock market is absolutely nuts.

Source: Shutterstock

We’ve gone from the most oversold conditions in the history of the stock market… to the biggest oversold bounce ever.

Nobody I know is enjoying this action. The best traders in the world are watching this action from the sidelines. They’re not willing to trade until the dust settles…

But, as I mentioned last Friday, I’m buying. So many stocks are on sale right now. The opportunity to profit is just too great to ignore.

In fact, as I told my Breakout Alert subscribers yesterday, every stock in our portfolio is a “strong buy.” We’re going to see enormous gains in the days/weeks/months ahead. (Subscribers can access that buy list right here.)

Most of these stocks hit bottom on Monday, and they’ve bounced since then. But, they’re still trading at ridiculously low valuations. They could double in value from here and still be considered “cheap.”

If you’ve been reading the Market Minute for a while, then you know one thing for sure about me… I don’t brag about my successful trades. I merely point out where I’m willing to take the profits, and I suggest that you do the same.

Humility is a common characteristic among all of the successful traders I know.

In the most recent issue of the Breakout Alert, however, I pushed the edge of the humility envelope. I told readers that the prices of our stock holdings were undervalued. There were BIG gains ahead. And I was confident our stocks would be much higher in the months ahead.

Then I made a new trade recommendation. That trade exploded 37% higher yesterday.

I told subscribers not to chase that trade higher. It will likely come back down to a better buy price in the days ahead.

But, the rest of the stocks in our portfolio are screaming buys at the current prices. Anyone who was looking to buy stocks with low-risk/high-reward potential had a huge opportunity with our portfolio.

And, that’s what I’m saying to you today.

The stock market has been absolutely nuts lately. The S&P 500 trades hundreds of points lower, then hundreds of points higher, within a matter of days. There’s really no sense to the action.

But, if you can buy cheap stocks in oversold conditions, then you’re likely to outperform the broad stock market in the months ahead.

That’s what we try to do in the Breakout Alert. We “flip” these low-priced stocks, using a specific technical pattern that can predict imminent, explosive moves.

If you’re looking for simple profit opportunities in what’s become a highly uncertain market, please take a look at this video. It explains our Breakout Alert strategy in detail. And, I know it’s a strategy that will profit in the months ahead.

Best regards and good trading,

Jeff Clark

Reader Mailbag

Today in the mailbag, a trading story from Breakout Alert subscriber John on the last bear market… and how the conditions from 2008 relate to today…

At the height of the 2008-2009 bear market, my favorite trade of all was selling a put for an equity for more than the strike price (!). The VIX was about 84 or so, and the editor of the newsletter that made the recommendation said the anomaly was caused by the underlying math of the Chicago Board of Trade being entirely inadequate to respond to the distortion of the extreme level of volatility.

My experience then suggests how extreme the opportunities you are describing today might prove to be. Has the CBOT closed that potential window, or might there be similar miracles coming our way?

– John M.

And readers respond in support of Monday’s Market Minute, “The Question No One’s Asking”…

Nice article, Jeff. Anyone with a calculator and the ability to check percentages can hardly avoid reaching the conclusion that this Coronavirus situation is horribly overblown. U.S. population is about 327 million. Let’s divide that into deaths from the virus and you get the following percentage: .000009%. I don’t even know how to pronounce that low a number, and it has resulted in a devastatingly costly shutdown of our entire society.

Italy, the HARDEST-hit country with deaths from the virus has a population of 60.5 million and 5,476 deaths. Do the math and their percentage of deaths is .000009%. China has less deaths and a population 20 times that of Italy. Don’t even bother to use the calculator on that one. Compare these numbers to the usual number of deaths from influenza worldwide, and it’s a joke.

So one must ask the question: “What the hell is going on here? Why has the world been turned upside down by this thing?” Maybe you can come up with the answer.

In the meantime, how long will it be before the reality of shortages of basic food and medical items, soaps, toilet paper, eggs, flour, ground beef, bottled water… combined with lack of income and unpayable bills, plus stay at home orders and curfews… result in riots and the ensuing possibility of some sort of martial law?

Well, you get the idea, and it’s far from a fantasy. I’d certainly welcome your take on the above.

– Ken T.

Thank you for saying this! The economic and human life damage from destroying the economy will far exceed the medical damage! The mental health crisis will skyrocket. When a nation goes to war to defeat an enemy, don’t they gear up all of their resources and focus their efforts to defeat the enemy rather than shutting everything down and committing economic suicide?

– Floyd S.

Thank you, Jeff. A voice of sanity.

They need to open businesses back up. What the government officials are doing is illegal and not constitutional. I don’t know why I should believe a word any of them are saying. They lie so often, that I am skeptical of their “fix” and the intent behind it. The data provided has been nothing, if not, incomplete at best. Thanks again for the article.

– Dan W.

But not all agree with Jeff’s remarks…

It seems to me it’s not really a government-issued quarantine as much as it is a medical-issued quarantine. If Trump had his way, and he dithered, he would let the virus run its course. But it’s about the curves.

You use them all the time, Jeff. The curves are telling us that the cost of lives will be exponential without lowering the amount and rate of infections because the medical community doesn’t have the tools and equipment to cover the quantity of sick people being projected. It really exposes the fragility of the U.S. healthcare system, doesn’t it? And/or it’s the farcical preparedness and response by the government to assist doctors in effectively doing their job.

Irrespectively, the projections, if they came about, would invite riots and anarchy especially when it comes to the allocation of resources. I’ve lost, despite your help, lots in this market. But I like the response of the American people coming together. You see it on Facebook now all the time.

Even from a financial standpoint, your question is quite selfish. It’s an individualistic mentality, rather than a social mentality, that makes you ask such a question. You need to get out more!

– Jay F.

Finally, a note of appreciation on a recent members-only Q&A…

Hi Jeff, your Q&A was very insightful. I hope you have more of these in the near future, especially in these troubling times!

– Paul K.

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…

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