{"id":21553,"date":"2024-02-02T07:30:35","date_gmt":"2024-02-02T12:30:35","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21553"},"modified":"2024-02-02T07:30:35","modified_gmt":"2024-02-02T12:30:35","slug":"how-the-pulse-system-can-help-you-make-114","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/how-the-pulse-system-can-help-you-make-114\/","title":{"rendered":"How the \u201cPulse System\u201d Can Help You Make 114%&#8230;"},"content":{"rendered":"<p><a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/the-report-card-is-in-heres-how-i-got-an-a\/\" target=\"_blank\" rel=\"noopener\">Yesterday,<\/a> I showed you that I earned an A+ grade on my entry-level trading service&hellip;<\/p>\n<p>(And yes&hellip; right now, you can<a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT790119&#038;eid=MKT791399&#038;step=start&#038;plcid=PLC202506\" target=\"_blank\" rel=\"noopener\"> get it for just $19<\/a>.)<\/p>\n<p>Part of how I got that grade &ndash; and helped my readers make 114% &shy; &ndash; is with a winning strategy that I call the &ldquo;Pulse System.&rdquo;<\/p>\n<p>So today, I thought I would take you deeper into how it works&hellip;<\/p>\n<h2 style=\"text-align: center\">Simple Method, Repeatable Results <\/h2>\n<p>It&rsquo;s simple, really&hellip; the Pulse system looks for stocks that have moved far away from their &ldquo;moving averages,&rdquo; and are set up to snap back to them.<\/p>\n<p>Here&rsquo;s an example, using one of my favorite stocks to trade &ndash; the VanEck Vectors Gold Miners ETF (GDX):<\/p>\n<p><!--IMG SNIP--><\/p>\n<p style=\"margin-bottom: 20px\" align=\"center\"><img decoding=\"async\" class=\"img-fluid\" alt=\"Image\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202402\/20240202-JMU-01.png\"><\/p>\n<p>In mid-April 2023, GDX was trading near $36 per share. The stock had rallied from $27 a few weeks earlier. It was now in an extended, overbought condition &ndash; and vulnerable to a pullback.<\/p>\n<p>The various moving averages (the squiggly lines on the chart) were extended far away from each other. And, at $36 per share, GDX was trading historically far above its 50-day moving average (the blue line).<\/p>\n<p>At first glance, this looked like a good setup for betting on a decline in GDX.<\/p>\n<p>But, I didn&rsquo;t recommend a trade &ndash; because there was something missing&hellip;<\/p>\n<p>So, I passed on the trade.<\/p>\n<h2 style=\"text-align: center\">Waiting for the Right Pulse<\/h2>\n<p>Instead, I waited until the momentum indicators showed &ldquo;negative divergence&rdquo; &ndash; which they did by early May.<\/p>\n<p>Following that quick decline in April, GDX rallied back up to the $36 level. Once again, the stock was overbought and trading far above its 50-day MA. All of the moving averages were extended far away from each other.<\/p>\n<p>So, the chart showed nearly the exact same setup as it did in mid-April &ndash; with one key difference&hellip;<\/p>\n<p>This time, this time, the MACD and RSI indicators were lagging the move.<\/p>\n<p>While GDX was rallying and trying to make a higher high, the momentum indicators were making lower highs. The momentum behind this rally was weakening, an early warning sign of a decline.<\/p>\n<p>This was a much better setup for a short trade.<\/p>\n<p>GDX was just as overbought and extended as it was a few weeks earlier, but this time there was a higher probability that GDX could pull back towards its 50-day moving average line.<\/p>\n<p>So, I recommended a position that would profit as GDX snapped back towards its 50-day MA.<\/p>\n<p>Here&rsquo;s what happened next&hellip;<\/p>\n<p><!--IMG SNIP--><\/p>\n<p style=\"margin-bottom: 20px\" align=\"center\"><img decoding=\"async\" class=\"img-fluid\" alt=\"Image\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202402\/20240202-JMU-02.png\"><\/p>\n<p>It took less than two weeks for GDX to snap back to its 50-day MA. Folks who bet on the decline by selling the stock short could have made $3 per share. That&rsquo;s a gain of nearly 9% &ndash; in just two weeks.<\/p>\n<p>That&rsquo;s not bad.<\/p>\n<p>But, we generated a gain<em> nearly seven times<\/em> greater by using options.<\/p>\n<p>Rather than selling shares of GDX short, I recommended an option trade that earned 65% over the same time frame.<\/p>\n<p><!--GREY BOX START--><\/p>\n<div class=\"card bg-light mb-4\">\n<div class=\"card-body\">\n<p align=\"center\" style=\"font-size: 18px;\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;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 <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener\">click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n<p><!--GREY BOX END--><\/p>\n<h2 style=\"text-align: center\">You Can Do This Too<\/h2>\n<p>This isn&rsquo;t luck&hellip; it&rsquo;s a system that I&rsquo;ve carefully created through my 41-year trading career. And based on my <em>Jeff Clark Trader <\/em>report card results (you can see them in <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/the-report-card-is-in-heres-how-i-got-an-a\/\" target=\"_blank\" rel=\"noopener\">yesterday&rsquo;s issue)<\/a> you could have beat the market four-to-one&hellip; achieved an 82% win rate&hellip; and gained 114%.<\/p>\n<p>Meaning if you had started with $5,000, it would have grown to $10,705.<\/p>\n<p>And if it seems hard, don&rsquo;t worry. You can learn more about the Pulse System <a href=\"https:\/\/secure.jeffclarktrader.com\/?cid=MKT790119&#038;eid=MKT791399&#038;step=start&#038;plcid=PLC202506\" target=\"_blank\" rel=\"noopener\">right here<\/a>.<\/p>\n<p>I&rsquo;ll guide you every step of the way.<\/p>\n<p>Best regards and good trading,<\/p>\n<p><img decoding=\"async\" alt=\"Signature\" src=\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\" width=\"200\" style=\"max-width:200px; width:100%;\" \/><\/p>\n<p>Jeff Clark<br \/>Editor, <em>Market Minute <\/em><\/p>\n<p><strong>P.S.<\/strong> If you have any questions for me, be sure to send them to <a href=\"mailto:feedback@jeffclarktrader.com\">feedback@jeffclarktrader.com<\/a>. I read every message that comes in.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By using the Pulse system, my readers could have made 114%&#8230;<\/p>\n","protected":false},"author":55,"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-21553","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21553","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\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21553"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21553\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21553"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21553"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21553"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21553"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}