Several months ago, 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. 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, as we head into the traditionally bearish month of October and considering the action in the market earlier this week, preparing for a crash may not seem so crazy after all.
Market conditions are 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. Traders should prepare by raising cash, tightening their stop losses on trades, and maybe even adding some short exposure.
For the record… I’m sticking with my prediction. I expect the market will be quite turbulent in the second half of October. Conditions got oversold enough following Tuesday and Wednesday’s action that we could get a pretty good bounce in the market over the next few days. But, once that bounce runs its course, I’ll be looking for significant downside.
And, that’s a good thing.
Crashes present opportunity for those who are 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.
The action earlier this week was just a warm-up for what I expect we’ll see later this month. So, if you haven’t prepared for it yet then now is the time to get ready. You could make an entire year’s worth of returns in just a couple of weeks.
Best regards and good trading,
Jeff Clark
P.S. I see plenty of downside ahead in the stock market. And I’ve been very clear with readers that I see something even more ominous on the horizon…
Investors could lose it all as the market crashes. But traders don’t fear market crashes. In fact, we get excited for them. As scary as they seem, they are a goldmine for trading profits… Especially if you use my strategy.
That’s why I’ve put together a brief presentation for you. And it’s not something you’ll read about in the mainstream media…
To find out how you could profit off of the coming market crash, read on here.
