Why the bull market will be over by November
From Justin Spittler, Editor, Casey Daily Dispatch:
“I want to talk about death.”
I heard an extremely successful trader say this last week. He was speaking to a room full of investors and business executives. The group included Doug Casey, Bill Bonner, E.B. Tucker, Nick Giambruno, and David Forest. There were also two other traders from Wall Street in the building.
We all came together to attend an exclusive investing conference in Miami’s South Beach. There, we discussed huge money-making opportunities that almost no one else is talking about. We also talked about the biggest threats facing investors.
Over the next few days, I’ll share some of the best ideas from that conference with you. But first, let me tell you how we got on the subject of death. You see, this trader wasn’t talking about a loved one who recently passed away… or even the idea of death…
He was talking about the death of the bull market…
Specifically, the bull market in U.S. stocks. Yes, the one that just turned nine years old last month.
Now, I know many investors can’t imagine this bull market ending. That’s because U.S. stocks have rallied despite sky-high valuations, weak economic growth, and record debt levels.
Nothing could get in its way. As a result, many folks think this bull market will run forever. But that couldn’t be further from the truth.
As you’re about to see, this trader thinks that this bull market is running out of steam fast. In fact, he believes the market could top out in “six to seven months.”
I’ll tell you why in a second. But let me first introduce this mysterious man.
I’m talking about Jeff Clark…
Jeff is a master option trader. He used to manage millions of dollars for investors in Silicon Valley.
He also has an incredible track record. You see, Jeff’s generated 389 winning trades since 2004, which is when he started sharing his trading ideas with the public. That includes 82 triple-digit winners and 296 double-digit gainers.
As if that weren’t impressive enough, remember that this track record covers 2008 and 2009, which were two of the most volatile years ever for stocks.
You see where I’m going with this. In short, it pays to listen to Jeff, especially when the market gets turbulent.
And right now, he’s saying that the U.S. stock market is wobbling on one leg. The warning signs are everywhere.
Unfortunately, I don’t have time to share all those warning signs with you. But I can tell you one of the biggest reasons he’s turned bearish…
Volatility has come storming back…
You can see what I mean below. This chart shows the CBOE Volatility Index (VIX) since the start of last year.
The VIX, or what most people call Wall Street’s “fear gauge,” measures how volatile investors expect the market to be over the next 30 days.
A high VIX generally means that investors are fearful. A low VIX generally suggests that investors are complacent.
You can see that the VIX stayed below 16 for pretty much all of last year. It also dipped below 10 several times. This is extremely rare. In fact, last year was one of the least volatile years on record. Nothing could faze investors.
It’s been a much different story this year. As you can see above, the VIX has exploded higher this year.
This tells us that investors have woken up. They care about bad news again. That means we could see even more volatility going forward.
And that’s a huge deal. According to Jeff, volatility soars just before major bull markets roll over and die. It happened during the final innings of the dot-com bubble, and again just before the 2008 financial crisis.
In short, the recent explosion in volatility could mean that the market’s about to tumble…
And given how low volatility’s been, Jeff says that “there’s a potential for a very powerful move.” And after that, “most investors will be screwed.”
Still, it’s not time to hit the panic button. Jeff thinks we’ll see one more major rally before the market tops out six to seven months from now.
In other words, we still have a chance to make a killing in U.S. stocks.
Sadly, most investors will let this opportunity sail right by them. They’ll either panic sell or hold their stocks through the coming crash. Neither is a good strategy.
If you really want to juice your returns in the months ahead, you’ll want to learn how to trade options. But the good news is that Jeff can help.
You see, Jeff says that the best time to be an option trader is when volatility is rising, like it is right now.
Jeff will be keeping a close eye on the VIX as we head into the week, and especially as he puts together his next Delta Report trade recommendation. To take advantage of this opportunity, you should consider signing up for his Delta Report advisory today.
But first, check out this video presentation. It details another of Jeff’s favorite indicators to use when searching for short-term, high-upside opportunities in the options market.
Buenos Aires, Argentina