It's Deja Vu All Over Again

Don’t ignore these issues. [Jeff Clark's Market Minute]( It's Deja Vu All Over Again By Eric Shamilov, analyst, Market Minute The “dot-com” bubble burst in March 2000. It was a time when stock valuations were at their highest, investors had a “buy first, ask questions later” state of mind, and people were quitting their day jobs to day trade. In the beginning of this year, stock valuations were pretty much at the same levels. From there, the tech heavy Nasdaq 100 index fell 17% to its lows on March 14. But there were really two parts of this selloff… Recommended Link [Trade ONE Stock for a Lifetime? Millionaire’s Secret…]( [image]( What if you could IGNORE 99% of the entire stock market… And still make 100%, 228%, and 373% gains in just 8 days – in bullish AND bearish conditions? Sadly, most folks don’t even see 373% returns in a single year – or even in 10-years… But today, millionaire trader and former professional money manager Jeff Clark, is revealing his newest trading breakthrough… He’s used this secret to help 170,000 regular folks see [triple-digit gains over 48 times]( and double-digit gains over 81 different times. [Click Here to Watch Jeff Demonstrate This ONE Stock Secret…]( -- First was a result of the market pricing in multiple rate hikes... A necessity that developed since the Fed was so behind the curve on controlling inflation. But the recent second leg down was all about the Russian war… Initial war headlines broke on February 10, and the Nasdaq 100 fell an additional 13% But when it became clear that the effects of the war (in its current form) on U.S. stocks had been priced in, we wrote several essays calling for a relief rally. So, has the rally now gotten ahead of itself? This chart comparing the price evolution of the tech sector then and now suggests that we have… Take a look… [chart] [(Click here to expand image)]( It compares the tech sector then (blue line) to how it’s currently developing (grey line). The trajectory appears similar. Some may even call it a replay of 1999-2000, including the [bear]( market rally from the spring of 2000. These types of rallies are notoriously dangerous for investors… pulling them back in when it’s time to be getting out. You see, the afterglow of the huge rally we’ve had since coming out of the pandemic is still fresh in people’s minds. After all, the market was at all-time highs as early as January 5. And now, mainstream pundits are starting to cheerlead this rally for more. The financial talking heads are a well-known contrarian indicator. Free Trading Resources 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 – at zero cost to you. Just [click here]( to check it out. This is concerning for investors thinking about rushing back into the tech sector after witnessing a 14% rally from recent lows in less than two weeks. As I mentioned [last week]( not only is it a reactionary way of trading, but it also ignores a slew of underlying issues that makes me believe that we’ll see new lows quicker than we’ll see new highs. The biggest issue – tighter monetary policy from the Fed – is set to get even tighter. Take a look at this chart… [chart] [(Click here to expand image)]( It shows the number of rate hikes the market is anticipating… Which keeps rising. If this was the reason for the market to sell-off in the first place, why should we expect new all-time highs if we’re slated for more hikes, not less? Other issues are starting to pop up as well… Last week, I mentioned how the biggest component of GDP (consumer spending) is starting to take a hit. Now, the fixed income market is generating another signal the pundits love to talk about. It’s known as an inverted yield curve (when short term interest rates trade higher than long-term rates) and it’s usually a sign of an impending recession. But this is a murky indicator, and the Fed distorts the yield curve with its targeted bond buying programs. So, getting a pure read is hard. But it is consistent at foretelling a recession with a lag… averaging about 18 months. [‘Failure to Comply’ – Are You Next to be Banned?]( After this recent rally, investors that took advantage of the situational trading setup to buy stocks should take profits at these levels. And those more concerned about the long-term picture should use this rally to allocate away from tech and into value. Because as we envisioned [2022 back in December]( this is the year of the value trade. Regards, Eric Shamilov Analyst, Market Minute Reader Mailbag Last week, we asked Jeff Clark Alliance members about their recent gains on my new trading strategy. These are some of their responses… I think that the earnings reversal strategy is a good one. I mostly appreciate the fact that the companies in the earnings situations are simply identified. It’s relatively easy to keep up on a few companies or indexes, but I lack the time to search earnings release schedules and multiple companies. With respect to the first five releases, I didn’t participate in all five recommendations, but I did take action in two of them: INTC and CWH. I was able to get in and out of CWH close to the recommended times and recorded a similar 61% gain (67% was posted). With INTC I wasn't exactly in and out on time and only recorded a 3% gain (19% was posted). However, I followed up on the ensuing dip the following week and recorded a 77.5% gain in two days on the secondary bounce. I've learned a lot about trading following your explanations and advice in both the videos and the newsletters. From January 6 to March 23, my trading account is up 311%. Most of the winners were multiple recommendations in GDX and SPY. Hope we can do that every eleven weeks! Thank you, Jeff and your whole team! – Salvatore F. I'm most enthusiastic about the new strategy on earnings reversal trades. I made all five successfully, with results very close to the ones you have posted. In each trade I have waited for instructions from Jeff to exit. I hope that he is prepared with more of these trades soon. – Ed P. I bought Campbell's at $1.40 and sold $1.71 on March 14. So, I made 22% in three days. Fine with me! Thank you. – James S. Thank you, as always, for your thoughtful comments. We look forward to reading them every day. Keep them coming at feedback@jeffclarktrader.com. In Case You Missed It… [Shocking but true: Strange Video]( Urgent Public Announcement The facts you’re about to see may seem incredible. They are all true We never thought we’d see it… not in America. Empty store shelves in the world’s richest country… Cars and computers on backorder… Six-month wait for a new car… What exactly is going on? And what does it mean for your money? [Go here to see a shocking video that connects all the dots and reveals the truth.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. [The Ultimate Guide to Taking Back Your Privacy]( [An Insider’s Guide to Making a Fortune from Small Tech Stocks]( [How to Earn Free Bitcoin]( [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. 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