Though all signs have been pointing toward a long-term bullish sentiment likely to drive stocks higher in the new year, one group of stocks is beginning to flash signs of a seasonal pullback…
I'm talking of course about the banking sector.
The post-holiday season is historically one of the worst quarters for these stocks as consumers tighten their purse strings after "breaking the bank" on Christmas.
And today, we're looking to cash in on the downside of one of the weakest financial stocks on the market right now. This multinational banking stock has been on a tear lately, rallying on the tailwinds of the larger market's optimism, but it's already beginning to lose steam, fast.
This banker isn't just declining on a seasonal retracement, either – with a shareholder class action lawsuit on its hands, I expect the floor to fall out from under this stock at any moment.
You see, after making a $900 million mistaken payment to the wrong company, this banker's now looking at fines to upwards of another $400 million….
Not to mention, shareholders are now taking legal action on the grounds that this company failed to establish appropriate risk management and internal controls.
Needless to say, this company's in a heap of trouble.
But we can still turn a profit with a well-placed trade – just take a look at the video below for the full details…
Action to take: Buy to open C June 18, 2021 $60 puts (C210618C00060000) using a limit order of $6.80.
"The Best Profit Pattern I've Ever Seen"
One key takeaway from today's Fast Profits: You can't control everything.
You can do everything the "right way" – you could buy a world-renowned banking stock like Citigroup, and still find the value of your shares eaten away by someone else's mistake.
And in this market, driven by vaccine headlines and on-again-off-again stimulus deals, there are far more unknowns impacting your money than we could count.
But there is one way you can take back control, even with COVID-19 threatening to upend the economy.
Instead of trading on rumors from finance media and sentiment, you can take the guesswork out of your investing with a time-tested formula, like the system Tom Gentile uses.
His readers are claiming profits hand over fist, even amid record-setting volatility. In fact, one reader says with Tom's guidance, she was able to make more money in 24 minutes than her husband makes in a week.
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, Strikepoint Trader and Straight-Up Profits. He also contributes to Money Morning as the Quant Analysis Specialist.