Just prior to market's sharp decline, Peter Way cautioned his readers, "There are increasing odds that some market-wide bad times are ahead, and may be getting closer."
Unlike many advisors whose forecasts are based on highly subjective criteria, Way's prediction was based on a specific set of factors that he monitors -- the trading activities of institutional market makers, the positions they establish for their "big fund" clients, and the insurance they take out to hedge these positions. It's a fascinating strategy for more sophisticated investors.
Here, in his Block Trader ETF Monitor he explains, "For some time now, the million-dollar market-makers have sensed that their big fund clients are prepared to flee at a moment's notice. And they know that the exit door is only just so big. Nowhere big enough to let them all through.
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