But this isn\u2019t a bear market \u2013 not yet, anyway. Bear markets don\u2019t begin this way.<\/p>\n
Having said that\u2026 I do think we will see the end of the bull market and the beginning of a bear market sometime later this year or early in 2019. I\u2019ll write about the circumstances that will create the bear market as we get closer to it.<\/p>\n
For now, the current decline is merely a correction. It\u2019s the meanest correction we\u2019ve seen in a while, but it\u2019s still just a correction.<\/p>\n
If you\u2019ve been reading the Market Minute<\/em> for the past few months, then you know the last time I was really interested in buying stocks<\/a> was last November \u2013 just before Thanksgiving. The S&P 500 was trading at about 2575. And the Volatility Index (VIX) had just triggered a buy signal.<\/p>\n As stocks rallied into December I grew more and more cautious \u2013 to the point where I was advising readers to raise cash and only put money to work in sectors that had underperformed and could play \u201ccatch-up\u201d with the market (like gold and retail stocks)<\/p>\n I was tempted to short stocks. But I only made a few attempts to do so, and only when conditions were quite stretched. And I was real quick exiting those trades.<\/p>\n My problem with the stock market since mid-December has been its straight-up move. As I explained in mid-January<\/a>\u2026<\/p>\n Declines are healthy. They relieve the selling pressure. They shake out the \u201cweaker hands\u201d and create a stronger foundation for longer-term gains.<\/p>\n Any asset that goes too far without a selloff is likely to get pummeled at the first sign of weakness. Everyone who\u2019s anxious to sell \u2013 but didn\u2019t do so for fear of missing out on even bigger gains \u2013 rushes for the exits. The rapid decline scares away the folks who would normally be willing to buy. And the price hits an air pocket.<\/p>\n That\u2019s when you get a dramatic overnight decline.<\/p>\n If you have cash, then you can take advantage of the move and buy at depressed prices while everyone else is selling.<\/p><\/blockquote>\n The stock market is now back down to where it was the last time I was interested in putting money to work. The selling pressure has shaken out a lot of the \u201cweak hands.\u201d<\/p>\n Just to be clear\u2026 I don\u2019t expect the market to reverse all of a sudden and immediately rally back to new highs. Rather, the market is likely to chop around in a wide trading range for the next several weeks.<\/p>\n But much of the immediate risk has been wrung out of the market. So, for traders who have cash, now is the time to take advantage of the move and buy at depressed prices while everyone else is selling.<\/p>\n It\u2019s hard to do, no doubt. It can be gut-wrenching to step up and buy when everyone else is selling.<\/p>\n But it\u2019s those gut-wrenching trades that tend to work out the best.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n P.S. <\/strong>Something that readers tend to like about the Delta Report<\/em> is how balanced it is. Between the numerous conservative and speculative trades issued each week, we always find a chance to profit.<\/p>\n And now, with volatility returning to the markets in such a big way, there\u2019s only more opportunity.<\/p>\n To learn more about a subscription to the Delta Report<\/em>, click here<\/a>.<\/p>\n![](\"https:\/\/casey-assets.s3.amazonaws.com\/images\/misc\/jeff-clark-signature.png\")
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