How to Find the Market’s Moment of Capitulation

[Inside Wall Street with Nomi Prins]( Maria’s Note: Maria Bonaventura here, senior managing editor of Inside Wall Street with Nomi Prins. Today, we’re featuring a guest essay from Nomi’s colleague and master trader Jeff Clark. After the dot-com crash, Jeff found an opportunity to book gains of 1,391% in 78 days… 1,263% in 68 days… 1,007% gain in 42 days… and 1,285% in 48 hours. He did the same thing after 2008, for 10 gains of 100+%. That’s because anyone can make good money during a bull market. But it’s what you do immediately after a bear market – those “reset” moments like we’re seeing now – that could truly make a killing. Best of all, Jeff believes we’re headed towards a historic market move we haven’t seen since March 9, 2009. If you’re willing to put your cash into a rare vehicle outside of banks and conventional markets, you could double your money dozens of times over the next 12 months. And in an online market briefing on April 5 at 8 p.m. ET, Jeff will share all the details on the very same technique from 2008. He’ll also give away a free trade recommendation. [Reserve your spot with one click here](. Here’s Jeff… --------------------------------------------------------------- How to Find the Market’s Moment of Capitulation By Jeff Clark, Editor, Market Minute [Jeff Clark] It seems like everybody is looking for a stock market bottom. Some folks think it happened last October when the S&P 500 dipped as low as 3500. Other experts think we might be headed for a “lost decade” for stocks, where the ultimate bottom is still years away. Who knows? My best guess is that we haven’t seen the bottom of the market yet. And when it finally does happen, most folks are going to miss it – because they’re looking for the wrong thing. Let me explain… Recommended Link [Renowned Economist issues startling prediction | America's Future]( [image]( PhD Economist: “Don’t Bet on It” According to former Goldman Sachs executive, Nomi Prins… Americans who are hoping for a ‘return to normal’ are going to be shocked when they see what happens next in America. She says, “If you’re betting your job, savings, or retirement accounts on a return to ‘normal’ you’re about to be left behind by a brand-new crisis few see coming.” [Click here now to see America’s next crisis.]( -- We’ve seen two major stock market bottoms in the past two decades. There was the bottom of the bear market in March of 2003, following the bursting of the dot-com bubble. And there was the bear market bottom in March of 2009, which marked the end of the Great Financial Crisis. Both of those bottoms unfolded in a similar manner. In both of those cases, the stock market bottomed during a final act of investor capitulation. Investors finally grew tired of the day-after-day, water torture-type of decline. They couldn’t take it anymore. And they collectively threw in the towel – selling entire portfolios of stocks, all at the same time. [Featured: Must See! Florida Dad “hacks” gas pump. What happens next will STUN you…]( In hindsight, it’s easy to spot on the charts. Here’s how the S&P 500 looked at the moment of capitulation (blue arrow) in March 2003… [Chart] And here’s the bottom (blue arrow) in March 2009… [Chart] Like I said, in hindsight, it’s easy to spot the bottom. Those moments of capitulation seem obvious. The bear markets ended. New bull markets began. Recommended Link [Expert Who Predicted Last Year’s “Tech Wreck” Issues New Forecast for 2023]( [image]( In March of last year, millionaire trader Jeff Clark predicted “trouble ahead” for the tech market. That very day, big-name stocks like Amazon, Netflix, and Facebook collapsed… falling as much as 50% in the weeks and months that followed. He predicted the 2020 crash 10 months in advance… And he even warned about the 2008 crash. Now Jeff’s coming forward with a brand-new forecast – only it’s unlike any of his past predictions. It’s directly connected to the money in your wallet. [Get the details here.]( -- And investors who got in near the bottom saw enormous gains within just a few months – not to mention the big gains as the bull markets matured. Not surprisingly, most folks are now looking for similar capitulation action to mark the bottom of the current bear market. But they’re looking for the wrong thing. Just as stock market crashes don’t happen when everybody is looking for them, the next stock market bottom is going to look different than what most folks are expecting. Rather than ending with a final act of capitulation – with investors selling their entire portfolios all at once – the current bear market is likely to roll to its final bottom. Different stocks and different sectors will reach their bottoms at different times. And that action will create a kind of “rolling bottom” for the broad stock market. To explain this concept in more detail, I’m putting together a special presentation which will air on Wednesday, April 5 at 8 p.m. ET. Recommended Link [The One Ticker Retirement Plan]( Over the Shoulder Demo Now Available [image]( Market Wizard Larry Benedict crushed the market in 2022. But he didn't do it with a “traditional” method… For a limited time, he’s sharing a free over-the-shoulder “demo” of his strategy in action. It takes less than 10 seconds… [Watch it here.]( -- I’ll explain how this current bear market will come to an end, and how it will look different than any bear market bottom we’ve seen before. I’ll share my prediction of what sectors look like they are closest to a bottom, and which sectors still have a long way to fall. And I’ll share the strategy that is most likely to generate triple-digit gains from this type of action. To register for this free presentation, [simply click on this link]( Best regards and good trading, [signature] Jeff Clark Editor, Market Minute --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). MAILBAG On Monday, we asked you whether the government created the banking crisis we see today. Richard thinks we need better regulators, while Tom believes the Treasury and Fed caused the banking turmoil… The mass finger-pointing exercise has begun. Regulators blame incompetent management and say it’s not their job to carry out what they told the banks to do. Congress blamed Trump for relaxing rules and wants tougher laws. Incompetency abounded in regulatory ranks. The head of CA’s bank regulators is a PhD in philosophy and has no banking experience, and Wokeness reigned. Cozy relationships between the San Francisco Fed and customers existed. SVB should have been under supervisory status back in 2022 when the liquidity mismatch became apparent. Hold-to-maturity accounting was used inappropriately and should have been stopped back in 2022, and bond losses would have been recognized earlier. In short, SVB should have never happened. We don’t need more banking laws. We need regulators who do their job. Wokeness equity thinking and resulting policy need to be removed from American business and government. – Richard S. The Treasury and the Fed caused the current banking problem. It wasn’t poor management or risky investments. Keeping interest rates near zero for so long flooded the banks, all banks, with deposits. They had to “invest” it in something. The safest investments are Treasuries because you’re sure to get your money back at maturity and get your interest payments during the term. But, when your investments are paying you .5% and you suddenly have to pay out 3% to depositors, anyone can see that won’t work. Every bank has this problem. More big bank failures to come. – Tom F. And then, on Tuesday we asked, if the government caused the banking crisis, are they capable of fixing it? Reader Hugh has a proposal for a solution… Here is a suggestion to help relieve the problem: End the guarantee protection of money market accounts. As I understand the process, money market interest payments are guaranteed by the system. This is good, but unlike FDIC coverage, there is no insurance premium. There should be a cost for the protection. The issues are: (1) Who would pay the cost for the guarantee? (2) Will full or partial elimination of the guarantee be too big a shock to the system? Related to this is the issue of how rapidly it should be done. I suggest immediately (and without notice) removing the protection for big money market accounts, say more than $10 million, for perhaps 18 months. The action could be accomplished with possible plans to reduce the coverage to perhaps $1 million within two or so additional years. The Fed could be in the background in the event banks need some help from this change. – Hugh P. Do you agree with Tom that there are more big bank failures to come? And what do you think of Hugh’s suggestion of removing the protection for big money market accounts? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: Inside Wall Street Feedback). IN CASE YOU MISSED IT… [Forget other investments. Buy these instead]( All you have to do is own a small handful of these unique stocks… And you could retire faster than you would by trading, chasing the latest “hot” stock, or doing anything your broker tells you. 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