There’s no sugarcoating it, the S&P 500 tanked a whopping 6% last week on huge volumes.
And many have found themselves wondering if this is the start of a long, overdue bearish trend by the market.
Now, many are licking their wounds wondering, feeling clueless as to what to do next…
But they don’t need to – and neither do you.
This market is actually ripe with opportunities when you know where to look.
But don’t worry about that…
Here are the top 10 most stocks to hand you a nice chunk of cash – and they may surprise you…
This is The Only Way to Play the Worst-Performers
We could very well be in the beginnings of a new bear market. We are certainly overdue for one after recently setting the record for the longest bull market in history.
Of course, those who own stocks suffered the consequences of the market correction, and there could be more suffering in sight – if you hold the long stock…
But here’s the thing…you can still profit in a bearish market.
You see, great traders know how to make money in any climate and are always on the lookout for the biggest and best profit opportunities.
And there are plenty of them out there just waiting to be uncovered…
In fact, my premium readers have the chance to rake in extra cash on stocks that are plummeting all the time… like the 100% picked up on IYR, 132.04% on GLD… and even 100.58% on NUE. Even better, with the way I do things, turning these dogs into cash can happen in a matter of seconds. I’ll show you what I mean right here.
Now attempting to find stocks that will move up in a bearish or correcting market is like catching a falling knife. It can be done, but you’ll probably get cut. But there’s a better way with much higher probability…
The basic idea is to find the weakest stocks in a weak market. With our recent 6% correction, obviously the bulk of the stocks in the market went down and some went down a lot.
But here’s the catch – the worst performers are actually the ones we’re after.
The list below shows the top-10 worst S&P 500 performers over the past week. All of them dropped over 10%. The first, Packaging Corp of America (PKG) dropped a whopping 16.37%. That’s over 10% more than the S&P 500’s drop over the same time frame.
And truth be told, the stock is showing no sign of stopping this downward move and this is particularly true if the S&P continues its slide…
The chart of
PKG below illustrates how “bad” things are going for the stock.
PKG has crashed below both its 50-day and 200-day moving averages and numerous support levels. Remember, institutions control approximately 80% of the market and this is particularly so in the S&P 500, the institutional “playground.” Huge volume on the slide reveals institutional selling conviction on PKG and others in this list.
Now, although PKG and others could stop their slides and potentially recover, it’s more likely that their downward movement will continue.
And this downward slide is where our opportunity lies.
For stock traders, you’ll want to short shares. Your short position will increase in value as the stock drops. A better way, and the one I use, is to buy puts. They’re much cheaper and a lot less risky.
For example, the PKG January $85 put on PKG would cost you $3.80 per share (minimum 100 shares). As PKG drops in price, this put option will increase in value. Should PKG go up, you risk is limited to $3.80 per share. On the opposite end, if you short PKG, your risk is unlimited.
Now, these 10 companies are really just the beginning of the profit opportunities standing at the forefront of the markets right now…
In fact, next week, former Speaker of the House John Boehner will be revealing a historic opportunity for American investors…
While in office, Boehner was one of the staunchest opponents of cannabis.
But now, thanks to a dramatic change of heart, he’s one of its biggest allies.
And today, he’s inviting my Power Profit Trades readers to take part in a historic event…
You see, he’s agreed to host the first-ever national event on cannabis where he’ll break down everything you need to know to have a chance to profit from this unstoppable economic revolution.
Make no mistake… your reward for attending could be the kind of wealth that lasts for generations.
And, I’ve arranged for you to get a free cannabis stock recommendation before the event even takes place.
Simply click here to register now.
Good Trading,
Tom Gentile
America’s #1 Pattern Trader
