{"id":13876,"date":"2019-06-10T07:30:51","date_gmt":"2019-06-10T11:30:51","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=13876"},"modified":"2019-06-10T07:30:51","modified_gmt":"2019-06-10T11:30:51","slug":"be-very-careful-here","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/be-very-careful-here\/","title":{"rendered":"Be Very Careful Here…"},"content":{"rendered":"

We came into last week looking for a rally<\/a>. It was an unpopular opinion.<\/p>\n

The stock market was breaking down. And many of the financial television talking heads were predicting a deeper selloff towards 2600, and even 2500 on the S&P 500.<\/p>\n

But several indicators – including the CBOE Put\/Call ratio<\/a> – were indicating extremely oversold conditions. They were telling us the downside was probably limited. We were nearing the start of a significant oversold bounce.<\/p>\n

That’s exactly what we got.<\/p>\n

The S&P 500 had its best week of the year last week. The index rallied from a low of 2730 the previous Friday, to a high of 2885.<\/p>\n

That’s nearly a 6% gain… IN JUST ONE WEEK.<\/p>\n

That’s an insane move. And it has caused a lot of traders to quickly rush to the other side of the boat. Just about everyone now seems to be looking for the stock market to make a new all-time high, soon.<\/p>\n

But, before we join that crowd, let’s think back to the Friday before last. Remember how you felt that day?<\/p>\n

The stock market was way oversold. The Put\/Call ratio spiked above 1.4. The McClellan Oscillators<\/a> were flirting with extremely oversold territory.<\/p>\n

We, however, figured there probably wasn’t much more downside since everything was already so extremely oversold.<\/p>\n

Now… look where we are today…<\/p>\n

The S&P just had its best week of the year – which is saying quite a bit when you consider the huge ramp higher we saw during the first quarter. We’re nearing the upside target of 2900. The Put\/Call ratio closed Friday at 0.79. The McClellan Oscillator for the New York Stock Exchange (NYMO) closed well above its upper Bollinger Band<\/a> – indicating an overbought condition.<\/p>\n

And, most of the financial television talking heads are now talking about the potential of the market to hit new highs.<\/p>\n

This is probably a good time to be cautious. We’re due for a bit of a smack-down early this week.<\/p>\n

The next move lower will likely form a higher low – above 2744. And, that will set the stage for another rally later this month.<\/p>\n

For this week, though, traders ought to be a little cautious.<\/p>\n

Who knows? The market may continue to move higher. But, just as it was a bad idea to chase stocks higher into overbought conditions in April, it’s a bad idea to do that today. There will likely be a better time to buy sometime in the days ahead.<\/p>\n

Best regards and good trading,<\/p>\n

<\/p>\n

Jeff Clark<\/p>\n

Reader Mailbag<\/strong><\/h2>\n

Today, readers respond to Jeff’s piece on D-Day<\/a>…<\/p>\n

\n

Very meaningful essay today. Thank you.<\/p>\n

– Mark M.<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

Merci, for going the extra mile to share and remind us of the great sacrifice our Americans made.<\/p>\n

– Garret F.<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

Outstanding letter (about your visit to Normandy). Every kid in our country should read this… and many of their parents. Thank you for sharing.<\/p>\n

– Jackie D.<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

AMEN. Thank you for REMEMBERING!<\/p>\n

My grandfather was a POW for 20 months captured at Battle of the Bulge.<\/p>\n

– John G.<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

Jeff, I liked your piece, but I think you should have mentioned all allied soldiers and not just Americans, people from India, Australia, N Zealand, Ireland, where I am from and the United Kingdom of course, who lost more men and women than all the other nations put together.<\/p>\n

– Peter G.<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

My wife and I were at the Normandy cemetery last week. We also went to Utah and Omaha Beach and the cliffs where 250 Rangers fought with only 85 left after 2 days. It was gratifying to see it crowded everywhere, mostly Europeans and many school children. Not forgotten!<\/p>\n

– Jimmy J.<\/strong><\/p>\n<\/blockquote>\n

And two subscribers write in about their recent Delta Report<\/em> wins…<\/p>\n

\n

Sir, you now have my attention. I shelled out $2,500 to join the team and in less than one week I am up over $3,600 after 4 trades. If my math is correct that is over $1,100 profit after I paid off my subscription. You passed the test Jeff. Let’s GO!<\/p>\n

– John M.<\/strong><\/p>\n<\/blockquote>\n

<\/p>\n

\n

Jeff, I followed your advice and bought the SPY calls for $4.46 last week and just sold them at $7.08. That’s a very nice profit for just 3 or 4 days. Thank you so much. I just paid for my subscription on the very first trade.<\/p>\n

– Robert P.<\/strong><\/p>\n<\/blockquote>\n

Thank you, as always, for your kind feedback thoughtful insights. We look forward to reading them every day. Keep them coming feedback@jeffclarktrader.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Think of where you were on May 31…<\/p>\n","protected":false},"author":34,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-13876","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/34"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=13876"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/13876\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=13876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=13876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=13876"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=13876"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=13876"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=13876"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=13876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}