2021年9月30日星期四

A Simple Approach To Making Money In Whipsaw Markets

(It restores calm to the markets and eliminates unnecessary noise)
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September 30, 2021: A Simple Approach To Making Money In Whipsaw Markets

Even the sectors are scattered in this whipsaw market. As of yesterday, 100% of energy sector stocks were above their 50 day moving average. Let that soak in. In contrast, 0% of utility sector stocks were above their 50 day moving average.

To protect capital, reducing exposure in markets like this is a good approach.

Another approach is to trade stocks and options that follow a recurring pattern.

Take for example AZO (AutoZone). The gradual up and down price movement shown by the trend lines below is the pattern I'm talking about.

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With this stock, even while the S&P was going down, AZO was moving up with a mind of its own.


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The problem with a stock like AZO, however, is that it comes with a high price tag. So the reasonable next step is to look at the options offered. Unfortunately AZO options have a rather wide spread.

So we need a way to find stocks and options with tradable patterns that occur consistently and frequently.

Using this exact approach allowed me to pull 43% on MTCH (Match) in 2 1/2 days.

By the way, have you heard? According to the Wall Street Journal, trading options is more popular than ever and is about to exceed stock activity.

That's good news for traders of all levels, and one of my favorite ways to trade options is the approach I learned from 10X Trading Champion Chuck Hughes.

He has a unique and easy-to-follow approach to the markets that has allowed him to consistently pull profits like:

  • 148% in HACK
  • 250% in ETSY
  • 580% in XLK¹

For me, this approach restores calm to the markets and eliminates unnecessary noise — while adding really nice profits to the piggy bank!

Sincerely,

Celeste Lindman
Ask The Pros

¹Disclaimer: The profits and performance shown are not typical and do not guarantee future trade results.
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