You See? This is NOT 2023's Bull Market

JC Parets
April 5, 2024

Everything started to change in February.

We were right here talking about it.

You saw the major shift in March for sure. It was obvious to everyone.

But the cracks actually started to show up in early February.

In fact, both the Dow Jones Industrial Average and Nasdaq100 are still at the same levels they were in early February.

The Russell2000 and S&P600 Small-cap Indexes are both still below their December highs.

Apple just hit the lowest levels since October, making this one of the best bearish positions we put on this year, outside of the $LULU trade.

Both of these have worked out very well.

And I think there are more of these epic downtrends coming.

But it's less about the shorts, considering that not many stocks have been going down this year.

And it's been more about which ones are going up.

The stocks going up the most are the ones in sectors that carry the smallest weightings in the indexes.

The ones doing the worst over the past 2 months are the stocks and sectors that have the largest weightings in those indexes.

Hence the lack of progress at the index level, but the epic returns we've seen among individual components underneath the surface.

Look at energy, for example. Both the Crude Oil ETF and the Energy Stocks ETF hit new 4-month highs today relative to the S&P500:

The S&P500 is still in a massive downtrend relative to Energy Stocks.

This is NOT something new that just started this year. This has been an ongoing downtrend since 2020.

Look at this clean falling line with lower highs and lower lows.

Is this the chart you want to buy?

What's funny is that this chart above is the one that most investors in America own.

They think they're making money and everything is great.

But they just don't see what's happening underneath the surface.

And that's where the massive opportunity currently lies.

Investors own a lot of the S&P500 and the stocks and sectors that drive them, particularly large-cap tech and growth.

Investors do NOT own the denominator in this equation. They own almost no Energy at all.

We have the data.

But no one seems to care.

And we love that.

They won't realize it until it's too late.

I'm telling you. I believe this trend is just getting going.

The Energy Stocks Index is just now breaking out of a 15-year base.

We have a potential 30x trade that we put on yesterday that I think can really make an impact on my net worth over the coming years.

And it's so cheap too.

It's an easy trade to put on.

It gives us energy exposure for the next couple years.

And with implied volatility collapsing in energy stocks, the cost of the options trade is almost nothing.

I think this is the steal of the century and a trade that can make a serious impact on investor returns.

Click here for all the details on the underlying vehicle we chose, the strike price(s) and expiration(s).

Sean and I did a LIVE video yesterday where we put this trade on, walked through the entire process and answered everyone's questions.

As a member of All Star Options you get access to this potentially 30x Energy trade and ongoing commentary about when and where we want to be adding to this position.

I'm definitely going to be buying more.

Are you joining me for the journey?

Click here to get the details for the trade of the decade.

JC

 

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