You likely lost money again after the broader markets posted negative returns yesterday.
For many, that was another terrible day to have money in the markets. But for us, it was just another reminder of how mass-market-panic creates new opportunities for big gains.
For example, last week…
I told you how the mass panic around the Israel-Gaza war unlocks new profit opportunities in one oil and gas ETF. Thanks to knee-jerk reactions by investors, one of our trades is up 48% since Hamas started firing rockets into Tel Aviv on October 7th.
Sure, concerns around the geopolitical impact of the Gaza war have eased somewhat, but there’s another catalyst unlocking opportunities in one of our favorite hunting grounds.
Consider the retail sales report released last week.
It suggests the Federal Reserve might face pressure to keep interest rates high…
And that’s because, according to the new report, we’re seeing higher-than-expected retail spending, indicating a robust economy. In other words, the Fed could keep interest rates higher to squeeze more cash out of the economy and reduce inflation to their 2% target.
On the one hand, this doesn’t bode well for investors. Higher interest rates make it difficult for businesses to repay debt, raise cash, and cope with rising operations costs.
Still, on the other hand, higher-for-longer interest rates could lead to lower stock prices, creating an excellent opportunity to scoop up high-value stocks at a relative bargain.
For example, major tech stocks like Nvidia and Apple experienced sharp declines yesterday, but Nvidia hasn’t been this cheap since January before it rallied 250%.
Also, Bank of America beat profit forecasts, Lockheed Martin reported stronger-than-expected profits, and Wyndham Hotels & Resorts stock rose 11.2% barely twenty-four hours after Choice Hotels expressed interest in acquiring the company.
In other words, it’s not all bad out there.
You just need to look in the right places and take prompt action when you see low-risk, high-reward opportunities that meet your investment criteria. But remember, if your goal is to make more money as a trader, it’s not about whether stock prices increase or decrease… It’s about knowing how to profit from both sides of the price action.
Which is precisely what I’ve outlined here for you.