We may be closing in on a short-term market top.
One that could shave anywhere from 10-20% from prices… quickly.
And that top could hit as soon as next week.
But you don’t have to run from the market without looking back. You don’t have to drop every stock from your portfolio. Because today, I’m going to show you exactly how to prepare for this correction.
Remember, volatility is a trader’s best friend, whether it’s from upside or downside movement. And as long as you’re watching these two market indicators, then the short-term correction won’t pull the rug out from under your portfolio.
Every trader and investor should be watching these two indicators very closely.
Together, they’re the only way to pinpoint exactly when the market’s next correction will occur – allowing you to call the top – and profit on the downside…
Hands down, the absolute worst kind of volatility is zero volatility.
Not only does a “No Volatility / No Direction” – aka NVND – situation drive investors crazy as they wait for things to pick up… zero volatility will also cost traders money as time passes with no movement.
Take Fifth-Third Bancorp (Nasdaq:FITB), for example. In 2019, the banks were settling into what is normally a weak seasonal period. So, I recommended the purchase of a put on FITB and prepared for what my research told me was the inevitable – the stock was going to see a volatility storm and lower prices.
A month later, I’m watching the computer screen in aggravation after the stock had gone sideways on me.
It was going through NVND: a trader’s worst enemy.