We can all agree that the Nasdaq triggered most of the downward selling pressure we’re currently experiencing, right? It’s just full of big, index-swaying names like Apple, Amazon, Microsoft, Meta (Facebook), Intel and Nvidia!
The number of Nasdaq 100 stocks trading above their 50-day moving averages right now is only about 11%.
That number hasn’t been this low since the COVID-19 crash in 2020!
But the point I want to make is that it doesn’t often fall to these levels. And if it does, odds are the markets will go back up.
That’s why I believe we should turn all of our focus to trades we can make when markets are volatile…
1 Trade We Can Make When Markets Are Volatile
It might surprise most people, but the levels we’re at suggest that markets are about to head higher.
If you look at the S&P 500, you’ll see that momentum levels on the RSI are at about 18 — which is extremely low.
Again, the last time we hit levels like these was two years ago.
And when markets slide like they’ve been recently, it causes volatility via the VIX — known as the “fear gauge” — to move up.
Now, take a look at this chart of the VIX…
You’ll notice that volatility was at the 18 level, but when I sat down to film this video, it was close to 33.
But if you look at a long-term view of the VIX, you’ll see that when it hits these lower levels, it tends to decline fast.
That’s why the VIX is going to revert back to normal soon.
So what I would do to take advantage of this market volatility is to buy a put.
Check out my short video below to get the exact trade we can make when markets are volatile like they are right now.
Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to!
P.S. Compared to the 8% return the S&P 500 has yielded since October…
I’ve used a unique trading tactic to generate an overall 134% return during the same time period… All generated by moves in the S&P 500!
But this strategy isn’t only geared to go long the strongest sectors in the S&P 500…
It’s also designed to short the weakest sector, so when days like Monday happen… And our strongest positions turn to the downside… We’re at peace, knowing our risk is limited and our portfolio is hedged.
