If 2020 has given us anything, it's volatility. And volatility can be great for stock traders.
With the stock market at all-time highs to start the year, the CBOE Volatility Index (VIX) or "Fear Gauge" was around a 12.5.
Then it surged to an eye-popping 80 by mid-March at the height of the crisis.
But since the March lows, stocks have made a strong recovery after the U.S. Federal Reserve pumped about $3.5 trillion into the economy.
With the VIX now hovering around the 22 level and appearing to be on a steady decline, that tells investors we shouldn't expect much volatility ahead for stocks in general.
You might be thinking you've missed the big rally.
After all, if you're a trader, you want more volatility so you can capture bigger gains in a shorter period of time.
So, how do you find stocks with high volatility potential when the market is relatively calm?
That's where Money Morning Quantitative Trading Specialist Chris Johnson shines.
You see, Chris uses his proprietary trading software to find stocks that have a high probability of breaking out after a pullback.
Imagine getting to buy stocks in March all over again.
On Monday, he called the breakout for Clorox Co. (NYSE: CLX) using this software.
And during his most recently Money Morning Markets Live stream yesterday (Aug. 12), he revealed two stocks investors should be buying on the dip right now.
Both of these stocks have risen considerably since March and have finally pulled back to levels Chris thinks investors can profit from over the long run.
Here they are...
Chris Johnson's 2 Favorite "Buy the Dip" Stocks
Of course, this is just one of many opportunities out there. You can have expert options trades delivered right to your inbox each week. In fact, Chris has an exclusive invitation for Money Morning readers.
Learn how you could capture 52% gains, 78% gains, and even 108% gains in a matter of days, right here.