Archive Category: Max Profit Alert Archive

Last week, I shared why we aren’t exiting any of our open positions despite the S&P 500’s official cross into bear market territory. That still holds this week. I’ve been scanning the market for any new buying or shorting opportunities … but there are no compelling trades to make at this point in the market cycle. As such, we’ll spend this week waxing philosophical about the “typical” bear market. Spoiler alert: There is no “typical” bear market…

In a lot of ways, I’m no different than each of you. I put my pants on one leg at a time. I check on our open positions multiple times a day. And I feel annoyed when a majority are in the red. That said, as someone who “eats, sleeps and breathes” the markets, day in and day out, for over 20 years now … I’ve learned a few things that, perhaps, set me apart.

I hope you saw the trade alert I sent you yesterday afternoon. I recommended selling half of the $39-strike call options we bought on the Alerian MLP ETF (NYSE: AMLP) in early March, now that they’re nearing profit territory again. I promised to share more about my reason for this recommendation. I’ll get into that. And then I have exciting news to share with you today — so please read on!

Bear markets present unique challenges … as well as unique opportunities.

Stocks are up today! It’s a welcome relief after the slog since prices peaked in early January. But as the saying goes: “One day does not make a trend.” The S&P 500 and Nasdaq 100 indexes have already crossed into bear market territory. And whether you’re looking at moving averages, trailing returns or any other price-based indicator … it’s clear that the dominant trend in most markets is now bearish. That’s OK!