Last week the Bull & Bear Tracker (BBT) exited the market on Tuesday, March 3, 2020 after producing a net gain of 1.4% for the week. The reasons why the tracker did not re-enter the market:
- Market was too volatile for text messaged instructions. During one 10-minute period it took for the signals to be delivered after being sent, the S&P 500 had already whip sawed up and down by as much as 2%.
- There were multiple BBT signal changes per day for at least two days last week. Had the accounts for the majority of the BBT’s subscribers followed the instructions, they could have potentially violated the SEC’s day trading rules. Their accounts would have then been frozen for 90 days.
- The ETFs were unable to calibrate to the S&P 500 (lacking integrity).
The decision to stop sending alerts out to subscribers on March 3rd was a good one. Even though the S&P 500 opened with a 0.98% gain on March 5th as compared to its March 4th open, subscribers would have lost 0.37% from the SPY and 1.8% from purchasing the SPY or the SPXL. The signal went to GREEN prior to the March 4th open and then to RED prior to the morning open on March 5, 2020.
Had the ETFs been calibrated to the S&P 500, the gains would have been approximately 1% for the SPY and 3% for the SPXL. Both of the S&P 500 inverse ETFs, the SPXS and SH opened higher on March 5th. With the S&P 500 opening 1% higher the SH should have declined by 1% and the SPXS by 3%. Even with the jury-rigged open, the RED signal to buy the SPXS on March 5th produced a paper profit of 6.5% as of the March 6th close.
Michael Markowski originally developed the Bull & Bear Tracker to predict market crashes from conducting research on prior market crashes. Due to the violent correction for the world markets which began after the S&P 500 hit an all-time high on February 19, 2020, he conducted extensive research on prior historical occurrences of a market at an all-time high swiftly correcting. Based on the empirical data from his research the probability is 100% that the stock indices for the US, Japan, Germany and Canada will continue down until they have declined by a minimum of 34% from their all-time high peaks. Michael’s March 6, 2020 article entitled “US stock to decline by another 22% by Easter” is a must read. The article covers other statistical probabilities as to the magnitude of the decline for the indices. Those who might be enticed by an opportune 34% decline should consider that the decline is not guaranteed to bottom at 34%. Read the article in its entirety to a complete grasp of the potential risk.
After you read Michael’s article you will probably agree that the markets are going to become increasingly more violent. The Bull & Bear Tracker is well positioned to produce spectacular returns from utilizing the SPXS to trade its RED signals which thrive on volatility. The 17.2% and 13.8% gains for its top two signals ever, both in December 2018, will likely be shattered.
Until there is a substantial decline in market volatility, the Bull & Bear Tracker’s signals will be exclusively available through a registered investment adviser (RIA) who has been vetted by BullsNBears.com. The advisor must have the expertise and experience to trade the market. Based on our experience with the signals, we believe that the returns will be significantly higher with a professional trader who can be nimble. Equally as important with this type of volatility, an account managed by an RIA will not have the day trading restrictions that are imposed on an individual.
To enable subscribers who can’t or do not want to engage an advisor, The Bear Trader (TBT), which is now under development, will soon be available. The TBT will send text messages to trade a portion of the Bull & Bear Tracker’s lower risk signals.
To be referred to a registered investment advisor (RIA) click here.
To be alerted when The Bear Trader becomes available click here.
The 2:50 video below highlights Mr. Markowski’s track record for predicting bankruptcies, market crashes and rallies at crash-bottoms.
For an update on the Bull & Bear Tracker’s track record through February 28, 2020 click here.