The market opened the new trading week yesterday with some very scary looking headlines, like…
SVB is the Second Largest Bank Failure in U.S. History,
Global Banking Shares Slide as Fallout Spreads,
And…
The Silicon Valley Bank Contagion is Just the Beginning.
Obviously, there’s some real panic in the market right now.
And while this certainly doesn’t seem nearly as bad as the drastic financial crisis we all went through in 2008, I can understand the temptation to feel like the sky might be falling again.
Yes, there will likely be more shoes falling going forward, particularly in the financial and banking sector. But before you pull all of your money out of the market and head for the hills, let’s take a step back and examine how this affects our trading.
As a rules-based trader, one of the most important tenets of any trading strategy I utilize is to not let emotions dictate how I trade.
While one major financial institution has gone belly-up and others are undoubtedly in trouble, that doesn’t mean there aren’t opportunities to make money.
In fact, it means just the opposite…
See the Opportunity Behind the Panic
Our economy and the stock market depend on the stability of the banking system, which is why the SVB collapse has stirred up so much fear among investors.
Other banks in trouble too, particularly smaller regional banks.
With the health of the banking industry in question, the market has dropped back nearly to the levels we saw at the beginning of the year, as many talking heads are doing their best Chicken Little impression, crying “The markets are falling!”
Yes, the broader market has taken a hit, but that’s not my big takeaway from this situation.
What I see is that the market is extremely volatile.
And, as you may know, heightened market volatility is one of the best catalysts for massive profit opportunities.
So, while many traders are looking for the exit, I’m ready to jump in with both feet!
In volatile market conditions like this, my preferred trading strategy is Straddles – a topic we’ve covered in depth here at Power Profit Trades.
Using the power of my proprietary Brutus software, I’m able to spot the stocks with the highest volatility that are primed to make huge moves!
And the best part is, it doesn’t even matter which direction the stock moves! So long as it moves in either direction, you profit with a straddle trade.
Smalls banks will be a big target for Brutus due to rising volatility that the SVB collapse causes, but there will be countless other opportunities across multiple sectors.
As you may have heard me mention last week, I’m on vacation in New Zealand right now, so my colleague and Volatility Strategist Mike Wade took over my usual appearance on Money Morning Live today to discuss where we’re most likely to find our best extreme volatility profit opportunities, and how to use the straddle strategy to make the most of this unique situation.
If you missed it, you can check out the replay right here.
And if you want to use the power of Brutus for yourself to identify the most volatile stocks on the market, have I got good news for you…
Starting tomorrow, I’m going to give you the opportunity to hop into the driver’s seat of Brutus and use it to help you profitably navigate this volatile market.
With access to Brutus, you’ll have the power to identify these opportunities directly using this one-of-a-kind software.
No more waiting for Jim Cramer or other talking heads on TV to tell you which stocks to trade – you’ll have the ability to do so for yourself. I’ll even walk you through how it all works with in-depth training courses and examples of real profitable trades that Brutus has helped me to identify, analyze, and capitalize on!
Keep an eye out for more details tomorrow on how you can get your very own access to one of my most powerful trading tools!
Until then,
Tom Gentile
America’s #1 Pattern Trader
Learn About Trading with the Money Morning Live Professionals!
Did you miss the Live session? Watch Tom’s replays!
