{"id":21666,"date":"2024-03-20T07:30:37","date_gmt":"2024-03-20T11:30:37","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=21666"},"modified":"2024-03-20T07:30:37","modified_gmt":"2024-03-20T11:30:37","slug":"how-to-stay-on-the-right-side-of-the-market","status":"publish","type":"post","link":"https:\/\/stage.jeffclarktrader.com\/market-minute\/how-to-stay-on-the-right-side-of-the-market\/","title":{"rendered":"How to Stay on the Right Side of the Market"},"content":{"rendered":"<p>On February 5, I shared with you a <a href=\"https:\/\/www.jeffclarktrader.com\/market-minute\/this-simple-rule-tells-you-if-the-market-is-bullish-or-bearish\/\" target=\"_blank\" rel=\"noopener\">simple trick that keeps you on the right side of the market<\/a>.<\/p>\n<p>It&rsquo;s so easy that anybody can do it.<\/p>\n<p>All you need is a charting platform and the 20- and 50-period simple moving averages (SMA).<\/p>\n<p>When I first shared this trick, I wrote:<\/p>\n<blockquote class=\"ml-5\">\n<p>The SMA shows the average stock price over a specific period. It smooths out the daily ups and downs to give you a clearer long-term trend.<\/p>\n<p>If the market is trading above its 20- and 50-day SMA, I maintain a bullish stance no matter what.<\/p>\n<p>It&rsquo;s only when the market breaks below both SMAs that I look to play the downside.<\/p>\n<p>If the market is in between the SMAs, or above one but below the other, take a more neutral approach.<\/p>\n<\/blockquote>\n<p>These are very simple but extremely effective rules.<\/p>\n<p>They&rsquo;ll prevent you from taking profits too soon or taking the wrong side of the market when there&rsquo;s a clear trend in force.<\/p>\n<p>If you followed these rules since February 5, you would have stayed invested in the market and captured 3.53% of additional upside movement as of last Friday.<\/p>\n<p>These rules would also have helped you avoid the majority of the 10.92% decline in the markets between July 27 and October 27, 2023.<\/p>\n<p>And you would have gotten back into the markets on November 3, capturing 17.20% of additional upside as of last Friday.<\/p>\n<p>You can see for yourself how this system would have worked on this chart of the S&amp;P 500 below:<\/p>\n<p><!--IMG SNIP--><\/p>\n<p style=\"margin-bottom: 20px\" align=\"center\"><img decoding=\"async\" class=\"img-fluid\" alt=\"Image\" src=\"https:\/\/cdn.jeffclarktrader.com\/JMU\/images\/202403\/20240320-JMU-01.png\"><\/p>\n<p>Now, I have to say, it&rsquo;s not quite as easy as just buying when the market breaks above the moving averages, or selling when the market breaks below.<\/p>\n<p>If it <em>was<\/em> that easy, then everyone would be a stock market millionaire.<\/p>\n<p>But this is a great starting point for figuring out in a general sense whether you should be bullish or bearish on the overall market.<\/p>\n<p>In my next issue, we&rsquo;re going to build on this foundation.<\/p>\n<p>Over the years, I&rsquo;ve developed a mechanical scoring system that tells you exactly how bullish or bearish you should be given what&rsquo;s going on with the market.<\/p>\n<p><!--GREY BOX START--><\/p>\n<div class=\"card bg-light mb-4\">\n<div class=\"card-body\">\n<p align=\"center\" style=\"font-size: 18px;\"><strong>Free Trading Resources<\/strong><\/p>\n<p>Have you checked out Jeff&#8217;s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just <a href=\"https:\/\/www.jeffclarktrader.com\/\" target=\"_blank\" rel=\"noopener\">click here<\/a> to check it out.<\/p>\n<\/p><\/div>\n<\/div>\n<p><!--GREY BOX END--><\/p>\n<p>The best part is that you can also apply this system to specific sectors.<\/p>\n<p>This takes all of the guesswork out of the equation. You won&rsquo;t have to worry about trying to figure out where the best opportunities are.<\/p>\n<p>The scoring system handles that heavy lifting for you.<\/p>\n<p>I promise you&rsquo;re going to love this&hellip;<\/p>\n<p>Stay tuned&hellip; we&rsquo;re going to break down exactly how this all works.<\/p>\n<p>Happy trading,<\/p>\n<p style=\"-ms-text-size-adjust: none; -webkit-text-size-adjust: none; font-family: Arial,sans-serif;font-size:17px; line-height:24px; margin-bottom: 15px;\"><img decoding=\"async\" alt=\"Signature\" src=\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/imre-gams-signature.png\" width=\"140\" style=\"max-width:140px; width:100%;\" \/><\/p>\n<p>Imre Gams<br \/>Analyst, <em>Market Minute<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On February 5, I shared with you a simple trick that keeps you on the right side of the market. <\/p>\n","protected":false},"author":55,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[76],"newsletter-type":[],"ticker":[],"class_list":["post-21666","post","type-post","status-publish","format-standard","hentry","category-uncategorized","publication-market-minute","person-imre-gams"],"acf":[],"ai_tts_audio_outdated":false,"ai_tts_legacy_post":false,"_links":{"self":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/55"}],"replies":[{"embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=21666"}],"version-history":[{"count":0,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/21666\/revisions"}],"wp:attachment":[{"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=21666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=21666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=21666"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=21666"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=21666"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=21666"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/stage.jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=21666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}