{"id":19338,"date":"2022-01-24T07:30:23","date_gmt":"2022-01-24T12:30:23","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=19338"},"modified":"2022-01-24T07:30:23","modified_gmt":"2022-01-24T12:30:23","slug":"believe-it-or-not-its-almost-time-for-a-rally","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/believe-it-or-not-its-almost-time-for-a-rally\/","title":{"rendered":"Believe It or Not, It’s Almost Time for a Rally"},"content":{"rendered":"

Jeff’s note: <\/strong>Before we get to today’s topic, this is important…<\/p>\n

My colleague, Jeff Brown, is hosting a special event on Wednesday, January 26 at 8 p.m. ET<\/a>, on a topic that is quite popular these days: NFTs.<\/p>\n

Frankly, the whole concept of non-fungible tokens is foreign to me. But, Jeff is a super-smart guy, I value his opinion, and he believes this technology has incredible potential.<\/p>\n

Jeff has discovered three little-known NFT-related cryptocurrencies he wants to share with readers. Plus, he’s even giving away a new collection of NFTs for free.<\/p>\n

You can get the full story from Jeff Brown right here<\/a>.<\/p>\n

\n

Believe It or Not, It’s Almost Time for a Rally<\/strong><\/h2>\n

By Jeff Clark, editor, Market Minute<\/em><\/strong><\/p>\n

There’s panic in the air, and blood in the streets.<\/p>\n

Financial assets are getting crushed…<\/p>\n

The S&P 500 is down more than 8% so far in 2022. Treasury bonds are down 3%. Bitcoin has lost 21%. And, Cathie Wood’s ARK Innovation Fund (ARKK) – the most widely touted ETF of the past two years – has given up all of its gains from 2021 and half the gains from 2020…<\/p>\n

Folks are bearish<\/a>.<\/p>\n

Last week, the American Association of Individual Investors (AAII) reported that the percentage of survey respondents looking for a rally in stocks over the next six months was just 21%.<\/p>\n

Those looking for a decline topped at 46%. That’s the lowest percentage of bulls<\/a>, and the highest percentage of bears in 18 months.<\/p>\n

That means we’re probably not too far away from the start of a rally.<\/p>\n

Investor sentiment is a contrary indicator. When everyone else is bullish, it’s usually a good time to be cautious. And, often the best time to put money to work is when everyone else is bearish.<\/p>\n

Lots of folks turned super-bearish on Friday.<\/p>\n

So bearish, in fact, that the CBOE Put\/Call ratio (CPC)<\/a> spiked to its highest level since the COVID-inspired stock market meltdown in March 2020.<\/p>\n

Just take a look at this CPC chart…<\/p>\n

\"\"<\/p>\n

(Click here to expand image)<\/a><\/p>\n

The CPC is a short-term contrary indicator. It compares the volume in call options<\/a> to the volume in put options<\/a>.<\/p>\n

A reading below 0.80 shows extreme bullishness (horizontal red line) – meaning folks are buying a lot more calls than puts. A reading above 1.20 (blue line) shows extreme bearishness as speculators jump over each other to buy puts.<\/p>\n

Friday was the first time in almost two years the CPC jumped above 1.20 and is currently sitting at 1.26.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Nobody was “buying the dip.” Most folks were buying puts and betting on even more downside in the days ahead.<\/p>\n

Of course, anything can happen. Maybe those put buyers will be right, and the financial markets will continue to get crushed this week.<\/p>\n

But, the stock market typically does not reward the popular trade.<\/p>\n

And, with the Volatility Index (VIX)<\/a> on the verge of generating a broad stock market buy signal,<\/a> it seems to me the market is near the end of this decline phase.<\/p>\n

Traders should be buying into any weakness early this week.<\/p>\n

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

<\/p>\n

Jeff Clark<\/p>\n

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

In today’s mailbag, Delta Report<\/em> member Marjorie thanks Jeff for his insights…<\/p>\n

\n

Of all the articles I read, I find Jeff’s insight on market movement has been one of the most “spot on” and reliable for me. Thanks.<\/p>\n

– Marjorie S.<\/strong><\/p>\n<\/blockquote>\n

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

It\u2019s the first time this happened in two years…<\/p>\n","protected":false},"author":25,"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-19338","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\/19338","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\/25"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=19338"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/19338\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=19338"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=19338"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=19338"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=19338"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=19338"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=19338"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=19338"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}