How to Double Your Money from This Seasonal Small-Cap "Danger Zone" Trend

Stocks are on a four-day winning streak this week - but look closer, and you'll see the Russell 2000's small caps are slipping into a seasonal "danger zone" (queue the Kenny Loggins tune).

That's why in this week's edition of Fast Profits with Money Morning, I'm targeting this small-cap move for a quick payday for you.

The small caps are telling us what the rest of the market is about to do, as we're heading into a historically low period of the year for stocks. After the early to mid-July earnings excitement dies down, a summer slowdown hits, typically until October. Small caps tend to fall first (I'll tell you why in today's video).

It's a classic seasonal trend - a healthy market adjustment that happens every year. And now that you know it's coming, you can profit from it with one easy trade. I'll show you in today's Fast Profits:

Trade details...

Action to take No. 1: Buy shares of ProShares UltraPro Short Russell 2000 (NYSE: SRTY) using a limit order of $10.

Action to take No. 2: Buy to open IWM, Nov. 20, 2020 $140 puts (IWM201120P00140000) using a limit order of $9.60.

As we continued digging deeper into Q2 earnings, I'll be continuing to publish more "Fast Profits" opportunities to help you make the most of every market event... or to help save you from disaster, should things take an unexpected turn.

And trust that there's no one better suited to guide you through these uncharted waters. I've been in the financial industry for decades, helping individuals build their wealth even in down markets.

In fact, just last month, shortly following a sharp downward retracement, costing the S&P 500 more than 200 points in three days, one of my Night Traders said:

"I had a goal - to make enough profit in trades this week to rent an RV and take my family on a two-week trip to visit Yellowstone and Mount Rushmore this Summer. And with eight winners in a row, I have reached that goal. The RV rental is now paid for!"

And now with me behind the wheel of your trading picks, you too could be on track toward making your goals a reality.

Just click here to see how...

Follow Money Morning onFacebook and Twitter.[mmpazkzone name="end-story-hostage" network="9794" site="307044" id="138536" type="4"]

About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

Read full bio