My Readers Made 129% in May – While on the “Wrong Side” of the Market

On Inauguration Day, January 20, the S&P 500 was trading near 5960.

This past Monday, the index closed at 5935. The stock market has essentially gone nowhere. Folks using a “buy and hold” strategy haven’t made any money.

But, there has been plenty of volatility – higher and lower. Chaotic markets give plenty of opportunities to profit as overbought and oversold conditions “snap back” to neutral.

Making 129% In One Month

For example, May was a great month for the stock market. The S&P 500 gained 6.15%. It was the best monthly gain since last November. It was the best May in 30 years.

But I was bearish.

Readers can look back at the multiple essays I published in Market Minute over the past month. “We’re heading into a decline phase,” I wrote on May 9. That was followed by, “Another sharp decline could start at any moment” on May 14. And of course, I cautioned, “The bear is getting ready to take another swipe” on May 30.

Yet, the broad stock market moved higher.

I may have been wrong, but my readers still made 129% in a month. That’s because the stock market rallies are different this year than they have been in the past.

There’s lots of intraday volatility, lots of back-and-forth action, and lots of ways to trade profitably, no matter the overall direction.

I recommended four separate put option recommendations on the S&P 500 to my subscribers during the month of May. And, despite the broad stock market notching its best May gain in since 1990, we were profitable on all four trades.

The cumulative return was 129%, and the average time in the trades was just five days.

The Right Strategy

As long as you use the right strategy – which I’ll be sharing on Wednesday, June 11 at 10 a.m. ET, so make sure you reserve your spot right here – this market environment can be incredible for making money.

That is the benefit of using a “reversion-to-the-mean” trading strategy in the current chaotic environment.

Basically, we just wait until a stock or an index gets stretched too far in one direction or the other. Then we bet on the proverbial rubber-band snapping back. We look to buy stocks that are deeply oversold, and we look to sell/short stocks that have pushed too far into overbought territory.

Then, we exit the trades when conditions return to neutral.

This strategy paid off quite well during President Trump’s first term in office. It has been paying off again since the President has returned. And, I suspect it will continue to work well for the next 3.5 years – at least – no matter what the stock market does.

Think about it this way…

I said back in January, that while President Trump enacts his agenda, we would see roaring volatility… and you would have to know how to use the big swings to your advantage.

Using the Chaos to Your Advantage

And my readers have been able to do just that.

Since Liberation Day on April 2, across my services we’ve closed 19 winning trades out of 25 (at writing).

Three for triple-digit gains… 15 for double-digit gains… many in as little as one week… some in as little as one trading day.

I suspect this will be the case for the remainder of the Trump presidency, which is why I’m presenting this wealth-making strategy on Wednesday, June 11 at 10 a.m. ET during my Countdown to Chaos event.

I hope to see you there – so don’t forget to reserve your spot.  

Best regards and good trading,

Jeff Clark
Editor, Market Minute

P.S. As a special bonus, I’m doing something I’ve never done before in the history of my newsletter career…

This week only, if you sign up for VIP text alerts, I’m unlocking access to my Delta Direct service. This is my direct-to-subscriber “squawk box” – no middleman or editor touches these words before they get to you.

Every trading day I’ll give you a morning update… and updates on the moves the market is making throughout the day.

I also give quick hit trades there. For example, out of the 19 winning trades since April 2, 11 of them came from Delta Direct.

If you’ve ever been curious about my paid services… I urge you to sign up for VIP alerts right here.