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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"…
Making Money Fast in Any Market
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.
About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Strikepoint Trader and contributes to Money Morning as the Quant Analysis Specialist.