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Is It Time To Start Looking for the Bear?

Is It Time To Start Looking for the Bear?

Posted On July 15, 2021 2:17 pm
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Dear Reader, 

Over the last several months I have been an unapologetic bull. 

However if you’ve been reading my emails the last 2 weeks or so you know I’ve started getting more and more cautious because of the consolidation of growth into the large cap tech stocks…

The FAANG+M stocks. 

Now, over the last 2 days we have seen substantial divergence in the indices.

At yesterday’s close the Dow was up slightly (.13%) but the Russel 2000 collapsed 1.63%.

Today as I write this the Dow is down slightly (.22%) while the Nasdaq and the Russel are each down well over a point. 

To me this is a sign that we may be headed into a bear market…

And even if the bull keeps running I believe it’s going to be more and more challenging to find good trades. 

That’s why in Options360 we are taking a very conservative approach right now. 

Claim your Options360 Trading Service membership for just $19. It’ll be, as our trading experts put it: “The best $19 you’ve ever spent.”

As I said yesterday, when the generals (FAANG+M) are advancing across the field faster than the soldiers, eventually they need to let the soldiers catch up. 

Since all of the gains in the indices are focused on FAANG+M, if they slow down – or correct- the indices will fall. 

Will it be a correction or a new bear market?

I don’t know.  Maybe the Fed won’t let it happen at all.  

Either way, it’s time for patience and caution. 

That’s how we are approaching things in Options360.  You’re welcome to join us for just $19…

It’ll be the best money you ever spent!

To Your Success,

Steve

About author

Steve Smith
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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