Here’s a bitter pill to swallow: I believe we are in a full-blown bear market.Mike Carr’s Greed Gauge. It’s hands-down the best tool I’ve seen to time bear market rallies. But today, I want to REALLY put it to the test… And see how it stacks up to the Big Money during volatility. Let’s take a look — starting with a bearish trade my scanner picked up at the height of the 2020 pandemic…
We’re in for a volatile time, and it’ll be a wake-up call to the investing class of 2017. Simply buying the dip all the way down isn’t going to work out. When it comes to steady declines and violent bear market rallies, you can no longer rely on an “everything goes up” strategy. Just ask any retail trader who’s been buying the dip over the past year. They’re easily down over 50% right now. No… these days, you have to trade. Of course, becoming a trader doesn’t guarantee profits. Even the Big Money — the traders with millions at their fingertips — can mistime these rallies… The good news? You have access to something they don’t… Something a LOT better.Big Money v. Greed Gauge
Remember, Big Money traders have deep pockets. They’re willing to put millions behind their bets.
And more often than not, they have good reason for this conviction. That’s why we follow these trades. But can they outsmart Mike’s Greed Gauge? To find out, let’s rewind the clock to March 2020 — the last time we saw a major rally after a big sell-off… On March 27, 2020, someone dropped $1.2 million on the Facebook (FB) June 19 $150 put options. This trade was out-of-the-money, executed as a sweep. So this was an urgent trade — and clearly the trader was willing to put skin in the game, risking over $1 million. It had all the makings of a great trade… Until you check the Greed Gauge. As this trader was turning bearish, the Greed Gauge on FB was still in the green — signaling more upside potential for the stock. Sure enough, the stock rallied another 40% before the gauge turned red. Only then did the Facebook rally stall. Puts were clearly the wrong trade to follow on this one. Big Money: 0. Greed Gauge: 1.(Click here to view larger image.)
Now, in hindsight it was a no-brainer to be bullish on FB.
But this was an extremely uncertain and volatile time. Many traders were selling this rally short, and looking for more weakness. Not this next trader, though… On March 25, 2020, they laid out $864,000 on the Amazon (AMZN) April 24, $90 call options. Within a month, the option shot up from $90 to more than $440… And they could’ve walked away with a quick 350% gain. It looked like this trader was following Mike’s Greed Gauge to bag this trade. They got in just a few days after the buy signal, and their option expired right before it turned red. Let’s give ‘em both the win. Big Money: 1. Greed Gauge: 2.(Click here to view larger image.)
Finally, here’s another 2020 Big Money trade on cloud company CrowdStrike (CRWD).
Had you followed Mike’s Greed Gauge, you would’ve been in on March 23 and out on May 27 for a 53% gain. This trader was a bit late to the party, though… They got in a couple days later, on March 26. So they only saw a 33% price rise. Still, using options this trader had the chance at 150% profits in just two months. Not bad — even though they would’ve had a much more sizeable return with the Greed Gauge. Big Money: Let’s say… 1.5? Greed Gauge: 3.(Click here to view larger image.)
Don’t Trade This Market Alone
Welp, that wasn’t even close… Can’t say I’m surprised.sign up for his LIVE presentation tomorrow at 8 p.m. ET. It’s invite-only, so you must put your name here to claim your spot. I’m confident you won’t regret it when the next bear market rally finally hits… Regards,