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IBD Calls This Market “Riskier Than A Bear,” They are Wrong…

IBD Calls This Market “Riskier Than A Bear,” They are Wrong…

Posted On September 14, 2020 12:52 pm
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On Friday morning, IBD released a story that calls this market “Riskier Than A Bear.”

Specifically, they say:

“Choppy markets are the most dangerous environment for growth investors. In a clear market uptrend, most stocks are going to rise. In a correction or bear market, investors can simply step to the side until conditions improve. But in a volatile sideways market, there are plenty of top stocks that look promising. There will be days (or intradays) when the major indexes are running and top stocks are flashing buy signals. But that means investors are going to be prone to buying near (very short-term) tops. Even if the overall trend is sideways, there’s a strong chance that new buys will be underwater.”

I agree with the explanation about the market conditions…

However, saying that the market is dangerous because you can’t just buy stocks and let them sit passively and appreciate is like saying scuba diving in the Keys is dangerous because there are sharks.  

It’s silly…

Yes, if you are diving in the Keys you need to keep your attention on what is happening around you, but calling it dangerous is just misleading and inflammatory.  

If you read my article on Saturday you know that I am expecting a steep market sell-off and that I believe it would be healthy. That doesn’t mean I am calling for a bear market, and timing in this market is treacherous

Once again, I find myself looking back at the John Maynard Keyes quote, “The market can remain irrational longer than you can stay solvent.” 

We need to be active and nimble.  We need to be able to enter positions and exit them quickly.

We can’t look at this market as a buy and hold opportunity… but the market is not inherently “dangerous.”

Flexibility in your approach, eyes on the market, and downside protection are keys to winning.  

I learned this all the “hard way” through decades of bull and bear markets, recessions and expansions, and basically getting my knuckles smacked though my entire professional investing career.  

That’s why I run Options 360 the way I do.  We aren’t a “call and put service,” nor are we a calendar spread, or diagonal spread service…

We use every tool in the toolbox to help our subscribers make the most out of every market.    

You can try Options360 for just $19!

Even though we have every tool and strategy open to us, we don’t stop there.  

I am a market junkie.  I obsess over it.  I’m not sure that’s healthy sometimes, but it means that I am constantly looking at the market for my subscribers, so they don’t have to.  

And finally, protecting your downside.  If you have been reading my emails for very long you know the story about my first trade. 

Short version, I sold naked puts the day before they expired on United Airlines because they were merging with Northwestern.  The next day, hours before the puts expired, the merger was called off and the stocks plummeted.  

And I lost $50,000 that I could ill afford to lose.  

I learned my lesson about naked positions on my FIRST trade. 

That’s why nothing in Options360 is naked.  Every position has a predefined and limited downside.  

You can try Options360 out for an entire month for just $19.  

Click here to get all the details.  

To Your Success,

Steve

PS. You might find that you make enough during the trial period that you can pay for an entire year with your profits.  You wouldn’t be the first person to do that.

When you are subscribing with the “houses” money, you are basically getting your subscription for FREE.  That’s always my goal, to make sure you are making so much money with Options360 that the subscription fee is inconsequential. 

That’s why we are willing to give you the first month for just $19.  If you are willing to risk less money than a meal at Chick-fil-a, then I will prove to you how hard we work to help you make money in any market. And my track record speaks for itself in that regard.  

Click Here to get all the details.

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About author

Steve Smith

Steve Smith have been involved in all facets of the investment industry in a variety of roles ranging from speculator, educator, manager and advisor. This has taken him from the trading floors of Chicago to hedge funds on Wall Street to the world online. From 1987 to 1996, he served as a market maker at the Chicago Board of Options Exchange (CBOE) and Chicago Board of Trade (CBOT). From 1997 to 2007, he was a Senior Columnist and Managing Editor for TheStreet.com, handling their Option Alert and Short Report newsletters. The Option Alert was awarded the MIN “best business newsletter” in 2006. From 2009 to 2013, Smith was a Senior Columnist and Managing Editor for Minyanville’s OptionSmith newsletter, as well as a Risk Manager Consultant for New Vernon Capital LLC. Smith acted as an advisor to build models and option strategies to reduce portfolio exposure and enhance returns for the four main funds. Since 2015, he has worked for Adam Mesh Trading Group. There, he has managed Options360 and Earning 360, been co-leader of Option Academy, and contributed to The Option Specialist website.

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