After a short hiatus in May, buyers are re-entering the market in full force, and it’s because we’re approaching an earnings “pre-season.”
The earnings pre-season rally is usually much larger than an earnings report rally and today I’m going to show you how to take advantage of this pre-season movement.
Volatility is ramping up – and as a result, stocks are about to move fast…
Giving you the opportunity to make fast money. I’m not talking about week-long trades, either. I’m talking about the chance to make bank in as little as minutes…
Multiple times a day…
Three days a week.
Want a chance to get in on the fastest profits in the game? Click here – the next Money Hour recommendations come out tomorrow.
We only have four to six weeks to play this pre-season trend for big profits.
And my technical charts show that three sectors stand to make the largest rallies.
These three sectors will allow you to squeeze as much profit as possible before the summer slowdown hits us all.
You’ll want to invest in these three sectors immediately…
CJ’s Pre-Season Focus #1: The Financial Sector
The financials did a great job last quarter and they followed their well-choreographed dance of rallying right up to the earnings announcement and then selling off.
The old “sell the news shuffle.”
But something has continued to fuel the financials right into the pre-earnings season.
Regulatory changes and low interest rates have the banks bringing in money like a drunken sailor (my apologies to the sailors out there).
The Fed gave the green light to share buyback programs earlier this year based on the health of the banks’ balance sheets. At the same time, uber-low interest rates are helping the banks with their balance sheet activity.
Those banks that do have trading desks are adding icing to the cake as the market continued to favor the bullish outlook, but that’s not where I think the great opportunities lie.
Instead, my data is showing me that the real profits lie with the regional banks.
Yes, I’m talking about the smaller banks.
Those gems like The PNC Financial Services Group, Inc. (NYSE: PNC), Bank OZK (NASDAQ: OZK), and The Bank of Nova Scotia (NYSE: BNS).
This is where the sweet spot for the financials lies right now.
To date, this group has outpaced its larger brethren 36% to 29%, and the performance is going to keep coming as we head into that earnings season.
CJ’s Pre-Season Focus #2: The Materials Sector
Another group that we’re going to start tearing through this week are the materials companies.
The acquisition of U.S. Concrete, Inc. (NASDAQ: USCR) served as the shot across the bow of the infrastructure play.
In a bold move, Vulcan Materials Company (NYSE: VMC) announced that they would be acquiring USCR, sending shares sailing.
The materials sector is another early earnings announcer, meaning that we’re going to uncover several earnings-related opportunities during the month of June ahead of the season.
CJ’s Pre-Season Focus #3: The Alternative Energy Sector
Finally, the alternatives are heating up again.
Last week, shares of FuelCell Energy, Inc. (NASDAQ: FCEL) finally broke above their 200-day moving average as volume is flowing back into this trade. FCEL is becoming the canary in the coalmine as companies like Blink Charging Co. (NASDAQ: BLNK), Plug Power Inc (NASDAQ: PLUG) and Workhorse Group Inc. (NASDAQ: WKHS) – yes, I said Workhorse! – are finally seeing an increase in trading volume on higher prices.
This, after many of these companies have been preparing for what I call a “volatility breakout.”
What does all that mean for you?
This boring market is about to see an increase in the high value trade targets, and we’ll be taking advantage of them over the next four to six weeks while everyone else is preparing for the earnings season.
These pre-season trades will take advantage of the seasonality, volume and pricing trends that are in the process of shifting as traders return to the market.
Tomorrow, I’ll be going through three new pre-earnings trades, along with specific trade recommendations on the stocks/ETFs and options.
So please make sure you don’t miss tomorrow’s edition of Straight-Up Profits.