loader image

My Favorite Opportunities for Bottom Fishing in a Choppy Market

by | Sep 30, 2022 | Options

The S&P 500 slipped even further Friday and the major indexes looked to close out a downright miserable week, month and quarter.

As we discussed in Wednesday’s WealthPress Live Roundtable, I think we’re going to see the market give back all the gains it’s realized since the pandemic, gains that were in large part due to all the fake money the Federal Reserve pumped into it…

As I pointed out, the Dow and Russell are already back to pre-pandemic levels.

And odds are it won’t be much longer until the rest of the market follows.

But you know me… I couldn’t care less what the market is doing — because the choppiness has led to some great trading opportunities!

Here’s what we’ve been seeing…

Bottom Fishing in Banking Stocks 

I prefer to trade individual stocks, but I also don’t ignore a trend when it’s right in front of my face.

And right now, I’m seeing banks — U.S. banking stocks in particular — getting some love.

Rates are going to stay high, meaning bank stocks have an opportunity to play catch up. The current economic climate has people scared, especially buy-and-hold investors.

And while it’s not my style, it’s understandable that some might want to park their money in the bank and collect that 3%-4% money market rate so they can sleep well.

With that influx of capital, banks stand to make a ton of money because people can use that capital to buy bonds… which the banks make money selling, as my pal Jeff Zananiri pointed out.

And go figure…it’s a trend the smart money has its eye on!

Over the past week, we saw large institutional traders going bottom fishing in names like Citigroup Inc. (NYSE: C) and JPMorgan Chase & Co. (NYSE: JPM).

While I took part in some of these trades, I’m staying away from the non-U.S. banks like Deutsche Bank (NYSE: DB) and Credit Suisse Group (NYSE: CS), which have already fallen hard.

You can catch the rest of my Roundtable discussion with Senior Strategist Roger Scott and Joy of the Trade’s Jeff Zananiri right here.

And be sure to bookmark this link and join us every Wednesday at 11 a.m. EDT.

P.S. Our Celebration, Your Special Offer!

I can’t believe it’s been a whole year already since we launched Wiretap Trade Alerts!

And a lucrative year it’s been…

If you’re not familiar with our Wiretap Alerts — our “weekend trades”here’s a quick breakdown…

  • Average hold time: one trading day — enter late Friday, close early Monday.
  • Win rate: 70.7%* (111 winners to just 46 losers).
  • The past year’s gains, from Sept. 21, 2021, through Sept. 23, 2022: 502%!!!*

You can see why this has become one of my favorite strategies — and why our members love it!

Even better, we’re doing something special to celebrate our success…

Come Join Us!

WRITTEN BY<br>Lance Ippolito

Lance Ippolito

What to read next

99 Problems and a “Pivot” is One

99 Problems and a “Pivot” is One

A friend of mine sent me this chart about three months ago. I should probably print it and keep it in my wallet next to a photo of my daughter. Given the sheer number of questions I’ve fielded lately, I’ll probably end up showing this chart more than her picture.

read more
Everything Everywhere, Going Down, All At Once

Everything Everywhere, Going Down, All At Once

When our momentum reading went negative last week, I didn’t know that we’d have the second largest bank failure in U.S. history three days later. All I knew was that it went negative… and that we got out of the way.

read more
Trust But Verify…

Trust But Verify…

I want to talk about our version of “Trust but Verify” in the markets. Qualification is the most important part of the investing process. And this F score value strategy looks to be crushing the current market.

read more

Have any questions? Contact Our Customer Service Team