I’ve been trading for more than 30 years, and I’ve never seen this level of chaos in the market.
Volatility ripped through stocks after yesterday’s close while unrest grew in DC. Investors could have looked at it with “worst-case scenario” tunnel vision, assumed a civil war was going to tear the country apart, and pull the markets down with it.
But that’s not the kind of volatility I’m talking about…
After this morning’s opening bell, stocks shot higher. As I type, the three major indices are all rallying over 1% higher.
The fact is that our market has been maturing since 2000. We’ve seen terrorist attacks at home and abroad, flash crashes, and other memorable events that would have taken the market down more than 20 years ago – and not one of them has had a lasting effect on stocks.
Today, stocks know how to digest these events and move on.
That’s why it’s important to avoid the noise and block out the headlines. Don’t let emotions – fear or greed – control your investments.
Instead, narrow your focus. Look only at how you can continue to profit from the strong bull run.
I, for example, only focus my research on two or three sectors at any time. In order for a sector to gain my focus, it has to check three specific boxes…
And one sector in particular just met all three of my investment criteria.
A move that generates big profits for those of us that can find the short squeeze before it happens.