I have a single-frame comic strip taped to the bottom right-hand corner of my desk.

It’s a picture of a man sitting at his breakfast table. He’s slumped over in his chair, and his forehead is resting on the table. Behind the man is his wife. She’s standing in her bathrobe, curlers in her hair, and holding a cup of coffee in one hand. Her other hand is pointed upright, with her index finger extended – as if she’s lecturing.

The caption reads, “Last month you were upset because you weren’t in the stock market. Today, you’re upset because you are in it. How will you feel next month?”

The comic ran in my local newspaper back in late October 1987 – just after the crash. But it could have just as easily appeared yesterday.

Investors felt pressured to buy stocks in January. The stock market moved higher almost every day. Everybody else was getting rich. And the talking heads in the financial media kept telling us how foolish it was to be holding cash.

Today, holding cash doesn’t feel so foolish.

The lesson here is that investors should resist the urge to buy stocks (or any other financial asset) when they feel pressured to do so. Chasing stocks higher into overbought conditions is usually a bad idea.

Trading the stock market is a game that never ends. It doesn’t matter if you underperform the market for short periods of time. You’ll have a chance to outperform as stock prices revert to the mean. As long as you don’t run out of cash, the game continues.

It doesn’t matter if all your friends are making more money than you. Be happy for them. Prosperity is a good thing. But don’t let their success coax you into high-risk, low-reward trades. Envy is a horrible investment strategy.

So, the next time you’re feeling anxious, frustrated, and upset that the markets are running away without you and everyone else is making more money than you are… think back to the action in the cryptocurrencies since Christmas, marijuana stocks since New Years, and the broad stock market over the past week.

Then, ask yourself… How will you feel next month?

Best regards and good trading,

Jeff Clark

Reader Mailbag

Today, readers react to Jeff’s Delta Direct post about the state of the market on Friday morning. If you aren’t a Delta Report subscriber, here’s a quick peek behind the curtain…

Think of it like the typical horror movie scene…

The power is out. The phone line is dead. And the cat is missing. The cheerleader hears a sound in the attic and goes looking for little Mr. Whiskers. Just as the audience tension is at its highest, the cat jumps out from its hiding place. The audience sits back in their chairs and breathes a sigh of relief.

Then the cheerleader gets slaughtered.

Right now, in terms of timing, it feels like the market is looking for Mr. Whiskers.

I always look forward to your market analysis and insights. But you get bonus points for your analogy to the horror movie. I laughed so hard I dropped the cell phone. Now we’ll see how high Mr. Whiskers bounces before the cheerleader gets slaughtered.

I so look forward to shorting this market, I’ll need the money to get the broken cell phone screen repaired. Keep it up Jeff, good stuff!

– Steve B.

I had to laugh at your comparison to a horror movie in your Friday 11:20 update. The market has been cruel to many people over the last week and I am certain there is lots of hand-wringing out there.

Thanks for your humor and some perspective. I think I will spend some time with my grandchildren. Keep up the good work.

– Scott S.

This information is great to see but I invest one equity at a time.

Years ago, I met a very successful businessman in retail. He told me that the Christmas season is very important but every product has its “Christmas season” – cleaning supplies, gardening supplies, etc. I try to see who is doing a good job, even with little regard to the trend their stock is on and be careful not to chase an otherwise good investment.

– Norman G.

Remember, a lot of your subscribers are neophytes – we need to know what to buy, not just that you are buying… 🙂 Thanks.

– Jim J.

Your analyses are often very good, but this time it was terrible. Exchanges have taken an accelerating dive down today and VIX is 30% up.

– Reijer K,

As always, don’t hesitate to send in your trading stories, questions, and comments right here.