Bear Market and Corrections

Bear Market Strategies for profit, protection and income.

Protect Long-Term Stock Holdings Against Severe Downturns With The Strategy Of Percentages

Categories: Bank Of America, Bear Market and Corrections, Profit And Income Strategies

Protect Long-Term Stock Holdings Against Severe Downturns With The Strategy Of Percentages

A recent question from an investor asked if there was a strategy to protect very long-term stock holdings through bear markets or severe corrections. A lot of investors, especially those who prefer buy and hold strategies rarely worry about a drop in their stocks’ value. Almost all of these investors are seeking dividend growth and they also hope for long-term capital appreciation. However there are some who do use a variety of strategies to set up protection levels in their long-term holds for that “just…

Read More

Look To The Leaps For Big Profits and Protection in High Volatility Investing – Oct 15 2014

Categories: Bear Market and Corrections, Profit And Income Strategies

Look To The Leaps For Big Profits and Protection in High Volatility Investing – Oct 15 2014

With the DOW down over 450 points and the SPX collapsing below 1840 investors tend to flee from stocks rather than look for opportunities. The Leap Options are one of the areas I love to peruse when investors are dumping their shares in stocks I would own even for more than a year. Often though my leap puts expire out of the money and I end up just keeping the profits. Other times such as in the big bad bear of 2008 I ended up…

Read More

Spy Put Options Trade Alerts For Oct 15 2014 – The Simple Way To Profit In High Volatility

Categories: Bear Market and Corrections, Profit And Income Strategies, SPY PUT (SPY)

Spy Put Options Trade Alerts For Oct 15 2014 – The Simple Way To Profit In High Volatility

The collapse at the open this morning set the market up for an immediate bounce. Selling was intense as economic data before the market opened pointed to the suspected global slow down arriving in America. That sent investors into a selling mood and as usual, a lot of stop-losses were obviously hit which in turn resulted in more stop-losses being hit which tanked stocks. The Dow was down 300 at one point at the open. The spy put options are an incredible way to enjoy…

Read More

12 Strategy Changes For Profiting In Volatile Markets – Afternoon Investing Strategy Notes for Sept 30 2014

Categories: Bear Market and Corrections, Investing Strategy Notes

12 Strategy Changes For Profiting In Volatile Markets – Afternoon Investing Strategy Notes for Sept 30 2014

Today’s market direction whipsawing is exactly what the technical indicators pointed to last night. Technically every signal continues to point to the market churning here. Short-Term Top Whether this is a short-term market top being put in place is somewhat difficult to tell, but based on my knowledge from investing in the past 4 decades, more and more signals are pointing to a market top for the present time. That does not mean a new bear market, but a definite signal of a larger correction…

Read More

Become A Better Investor – Profiting and Protecting with the Bollinger Bands Squeeze

Categories: Bear Market and Corrections, Profit And Income Strategies

Become A Better Investor – Profiting and Protecting with the Bollinger Bands Squeeze

The way analysts are talking today you would think the SPX has been down for a week now. It hasn’t. The SPX has been basically flat on Friday Sept 19, fell yesterday, Monday Sept 22 and today Sept 23, is trending lower. The Bollinger Bands Squeeze Whenever the market direction begins to make a change investors worry about a small dip in stocks become a larger one. Investors in general would love to learn how to profit from a drop in the market as well…

Read More

ETF Trade Alert – Strategies For A Pullback – Still Bringing In Profits

Categories: Bear Market and Corrections, ETF Investing

ETF Trade Alert – Strategies For A Pullback – Still Bringing In Profits

When a market is having trouble and investors are concerned about a pullback, one of the ways to keep bringing in profits while affording some additional protection is often to turn to ETFs. Many times ETFs will get beaten up as the underlying stocks within the ETF collapse under the selling pressure of a pullback. By selling puts or covered calls in an ETF during a strong pullback, you have a bit more protection in that a recovery or rebound, when it happens, often pushes…

Read More

SPY Put Options – Strategies For A Pullback

Categories: Bear Market and Corrections, Profit And Income Strategies, SPY PUT (SPY)

SPY Put Options – Strategies For A Pullback

The Spy ETF is my primary choice for trading during downturns to earn additional capital and build up a cash cushion to protect my capital from a larger pullback and to earn additional profits to grow my portfolio. The method I use during corrections and bear markets is somewhat different from regular trades I do in the Spy ETF. When a correction occurs I want to make profits each day but also hold additional spy put contracts in case a larger move lower lies ahead…

Read More

Intel Stock (INTC) – Trade Alert and Strategies For A Pullback – Aug 5 2014

Categories: Bear Market and Corrections, Intel Stock (INTC), Profit And Income Strategies

Intel Stock (INTC) – Trade Alert and Strategies For A Pullback – Aug 5 2014

Intel stock has been in my portfolio for years. This year though Intel Stock has started to show some additional valuation as it has been rising steadily since mid-June. There have been two jumps in the stock over the past three months. The first was June 13 and the second July 17. Following the jump higher in June, Intel Stock continue to rise but since the jump higher in mid-July the stock turned sideways and has now pulled back. Selling in the stock over the…

Read More

Strategies For A Pullback – Profiting From Plunges – Role Of The Heatmap

Categories: Bear Market and Corrections, Profit And Income Strategies

Strategies For A Pullback – Profiting From Plunges – Role Of The Heatmap

With the stock market possibly entering a period of higher volatility I am releasing a series of articles entitles “Strategies For A Pullback”. The focus of this series is to both profit from stock market downturns and higher volatility as well as protect capital in use. The first article looks at how using the heatmap can assist in profiting from plunges. When the stock markets take more than a dip, there are a lot of tools available to the investor to assist in timing trades…

Read More

Eyes On The Russell 2000 and Watching For Sell Signals

Categories: Bear Market and Corrections, Stock Market Outlook

Eyes On The Russell 2000 and Watching For Sell Signals

While the S&P 500 and the Dow continue to push back toward their record highs, the NASDAQ and Russell 2000 have a long way to go before recovery. The problem for stocks in general though is that at no time has the market direction sustained a move higher while the broad small caps and NASDAQ have faltered. The S&P can move up but eventually if the small caps and tech fail to follow, the S&P corrects. Many investors and analysts last week were worried about…

Read More

Market Direction Strategy Discussion – This Isn’t 1929

Categories: Bear Market and Corrections, Stock Market Trading

Market Direction Strategy Discussion – This Isn’t 1929

This is a strategy discussion for FullyInformed Members as I look at what I am doing at present and market direction in general. The media is filled with articles trying compare 2014 to 1929 and warning of an impending collapse in stock valuations. In this strategy article I discuss the two big market crashes of Black Monday in 1987 and the Flash Crash of 2010 and why there were indeed signs to be aware of. I then look at the present warning signs of this…

Read More

Controlling Emotions In Corrections

Categories: Bear Market and Corrections, Stock Market Trading

Controlling Emotions In Corrections

This discussion article looks at a method I use to remove emotion from a market correction. When markets correct, many investors get emotionally charged and as valuations tumble they make mistakes. Everything from buying back losing option positions to selling stocks for small gains or losses. By having a goal long before a correction occurs and understanding how corrections work and why we become emotionally attached, investors are able to make decisions that protect their capital and keep them on the winning side of trades.…

Read More

How To Protect Against True Black Swan Events

Categories: Bear Market and Corrections

How To Protect Against True Black Swan Events

Selling naked puts can be extremely profitable but what happens when a true Black Swan type event occurs. What does an investor do when they are selling puts against a wide number of stocks and the stock market collapses? A recent question from an investor brings a full discussion of how I handle a true Black Swan event. Investor Question From reading your articles it seems that you like to only do naked puts on stock you don’t mind eventually owning. So if a 9/11…

Read More

Warning Signs Of Impending Market Collapse

Categories: Bear Market and Corrections

Warning Signs Of Impending Market Collapse

With 2013 behind us and 2014 presently locked sideways, I thought it would be interesting to look at understanding the warning signs of stock market collapses. This is from a series done originally in the market direction outlooks last year and I felt it was worthwhile updating them and posting them together into a single article as a resource for use during the upcoming year. At this stage (Jan 17 2014) I see no strong signals of an impending collapse and certainly no bear market…

Read More

Understanding Stock Market Bubbles And Profiting From Them – Be Prepared

Categories: Bear Market and Corrections, Profit And Income Strategies, Stock Market Outlook

Understanding Stock Market Bubbles And Profiting From Them – Be Prepared

One of the most interesting contrarian-type investors has to be Marc Faber. In an interview last week in Finanzen 100, a German internet portal Faber explained that he believes with all the money printing going on by the central banks that the next bubble that burst will mean an end to the capitalist economic system as we know it.  Actually his exact words were “the next time a bubble bursts, then the capitalist economic system as we know will falter.”   In fairness then, this…

Read More