New World, New Rules

To better understand today's market, we have to go back a couple years… [Jeff Clark's Market Minute]( New World, New Rules By Imre Gams, analyst, Market Minute To better understand today's market, we have to go back a couple years… The bull run from late March 2020 to December 2021 was one for the ages. Practically anything you bought would have done well. It wasn’t a matter of picking a winning investment, but rather picking the hottest investment you could. Cryptocurrencies, SPACs, NFTs, and stocks all delivered massive gains. Recommended Link [Want to know what happened from 2020-2023?]( [image]( They printed $13 Trillion… Gave you $1,400… Sent the rest to their friends… And left you with inflation. But what’s coming next could be much worse. [Click here to find out how to protect yourself…]( -- Small-cap stocks were no exception either. Over that same period of time, the Russell 2000 Index rallied over 155%. The combination of rock-bottom interest rates and a steady stream of freshly printed dollars was like putting our financial markets on steroids. Of course, all that came to an end in 2022… Inflation came roaring back. This, in turn, forced the Fed to reverse course on their easy-money policies. Bitcoin dropped nearly 80%. The S&P 500 dropped nearly 28%. SPACs all but disappeared. It’s a new world out there for investors now. And that means new rules. There’s still some uncertainty around how high interest rates will go… not to mention how long they’ll stay elevated. But for now, uncertainty is the name of the game. That means the markets are likely to be a bumpy ride for many buy-and-hold investors. A perfect example is small-cap stocks. And while I’ve spotted a [potential bullish opportunity in the S&P 500]( the Russell 2000 still looks like it needs to break lower first. Let’s take a look… [(Click here to expand image)]( There are three key technical indicators here, the 20-, 50-, and 200-period moving averages. These three moving averages highlight the short, medium, and long-term trends in the market. Notice how prices have traded below all three moving averages. That’s a clear sign the trend is to the downside. Another piece of bearish evidence is that prices broke below an important support (blue line). This trend line has been a supportive floor for the market since June 2022. Breaking below that line is another sign that investors are still bearish on small-cap stocks. 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. It’s certainly possible that the Russell will pop higher for a few trading sessions. But any rally should fail and ultimately draw the index to fresh lows. For now, traders should avoid getting into stocks that make up the Russell 2000 Index. My downside target is around 1510. So, there should be another 14% decline before the index can stabilize and rebound. Happy trading, [Signature] Imre Gams READER MAILBAG Are you watching the Russell 2000 Index? Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com. IN CASE YOU MISSED IT… [Market Wizard who made $95 million for his clients in 2008 – and predicted the 2022 collapse – reveals his strategy:]( The One-Ticker Retirement Plan How to make all the money you need – in any market – using a single stock. [Click here for the name of the ticker…]( [image]( [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. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](