Though the markets opened higher this morning, I'm seeing a big problem on the horizon for our economy... and with it a top-shelf trading opportunity.
Today, I'm back for another weekly edition of Fast Profits to pull back the curtain on the stock market's weakest link: financials.
Despite widespread dividend cuts, banking stocks surged recently after the FDIC announced the repeal of the Volcker Rule, a restriction preventing big banks from making high-risk, speculative plays with investors' money.
Bankers everywhere welcomed the change with open arms, and a number of finance analysts are calling for a gradual return to supremacy for the finance sector.
But they're all forgetting one thing... Nothing behaves as it should in the world of COVID-19.
As we bear down on another 2020 earnings season, we will get a much better look at the full economic impact of the coronavirus. Due to common accounting practices, we likely only felt a fraction of the effects in Q1. But in the coming weeks, the financial sector, already weakened by heavy government intervention, is likely to see a mass sell-off as banking stocks get eaten alive by short traders.
Finance stocks are already beginning to feel the pinch trading below 50-day moving averages and trending lower...
That's why today, I'm bringing you a "one-two punch" to capitalize on the downside of the industry: an inverse ETF that will rise against falling finance stocks, and an option play to leverage the drop for even bigger gains.
Check out the full details in this, the latest "Fast Profits with Money Morning"...
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Trade details...
Action to Take No. 1: Buy shares of ProShares UltraShort Financials (NYSE: SKF) using a limit order of $13.
Action to Take No. 2: Buy to open XLF Dec. 18, 2020 $23 puts (XLF201218C00023000) using a limit order of $2.50.
As the financial sector begins to fall, these two plays will begin to see "supercharged" profits.
But this isn't the only fast-moving opportunity on the market...
America's No. 1 Pattern Trader, Tom Gentile, has a new trade recommendation for a cryptocurrency you'll have to see to believe.
Cryptos have made a name for themselves as high-risk plays since the Bitcoin bubble of 2017, but these days, some of the biggest and most secure profit potential lies in the world of blockchain.
And this recently recommended coin has huge corporations like Microsoft and Walmart watching with mouths watering and wallets open...
In fact, Tom is expecting it to secure a 1,000% windfall in a matter of days.
But it's not too late to get your piece of "money pie" - just click here to see how...
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