A week ago, I warned that an event was taking place that could spark the biggest correction since 2008. That day, the S&P 500 plunged 1.7% and the VIX shot up 22%. While traders panicked, I closed two trades for annualized returns of 1,205% and 2,111%. Since then, however, the market has rebounded strongly as investors’ fears about Greece and China were temporarily assuaged. So, do I think we’re out of the woods? Not even close. Now I know some of you may be thinking things are getting better. Stocks… Read More
A week ago, I warned that an event was taking place that could spark the biggest correction since 2008. That day, the S&P 500 plunged 1.7% and the VIX shot up 22%. While traders panicked, I closed two trades for annualized returns of 1,205% and 2,111%. Since then, however, the market has rebounded strongly as investors’ fears about Greece and China were temporarily assuaged. So, do I think we’re out of the woods? Not even close. Now I know some of you may be thinking things are getting better. Stocks are trading at all-time highs, the housing market seems to be recovering and unemployment is going down. Unfortunately, when you look closer at the numbers, you get a different story. When I made my July 8 prediction calling for the most significant pullback of this decade, I pointed to four major red flags. While this secular bull market may still have some good years ahead of it, numerous warning signs foretell a correction in the near term. #-ad_banner-# Today, I want to discuss one of the red flags I’m seeing in detail. Margin… Read More