Start the conversation
Editor's note: Higher taxes are coming, and that means every gain you make is going to be muzzled. So for the first time in Tom Gentile’s 37-year career, he’s giving away 10 patterns that could make you a killing in the coming weeks… up to 100% gains each. Seriously – if you’re looking for a better way you could make bigger, faster gains, watch this now.
Just when we thought we were done with 2020... we got 2020 2.0. I'm talking about the delta variant, of course - the new, more contagious, and twice as infectious strain of COVID-19 that now makes up 83% of new cases in the United States.
To be clear, nobody knows if COVID-19 will return to 2020 peak levels. However, even the prospect of things getting worse before they get better again is enough to move the markets.
And when markets move, us traders get the chance to make some real money on the up and down movement.
On July 8, 2021, Japan issued a national state of emergency in Tokyo to span through the completion of the Olympics due to a surge in COVID-19 cases. The S&P 500 dropped 1.5%+ in response.
Last Monday saw the S&P 500 drop 3% with COVID-19 surge news and then bounce back the following Tuesday with a rise in bond yield.
In short, the markets are jumpy - and they'll likely drop again with any more worrying delta variant news.
That means a lot of volatility. And volatility spells opportunity, which is why I've got the perfect way to play it for a chance to pocket some hefty cash to help us close out July with a bang...
How to Make Money as History Repeats Itself
The following Worldometer chart below illustrates clearly that global COVID-19 cases are beginning to surge again.
Last time this happened, we saw a sharp inverse effect in the markets.
You only have to look back to February 2020 to find it.
When COVID-19 first took hold of the markets, the S&P 500 tanked a whopping 35% from 3,386 to 2,191 in about a month.
Sectors that got hammered in 2020 included airlines, hotels, cruise lines, and oil companies.
Stocks in these sectors have been dropping... yet again... with the rise in COVID-19 delta variant cases before they really had a chance to fully enjoy the recovery. Here's a quick list:
- Delta Air Lines Inc. (NYSE: DAL)
- Southwest Airlines Co. (NYSE: LUV)
- Marriott International Inc. (NASDAQ: MAR)
- Royal Caribbean Cruises Ltd. (NYSE: RCL)
- Diamondback Energy Inc. (NASDAQ: FANG)
Should COVID-19 delta cases continue to rise, they'll likely drop even further.
We're also likely to see a repeat rise in "stay at home" stocks - the tech and online companies that kept us all sane during lockdown last year.
Time Sensitive: 10 best stocks to buy in July. You'll want to watch this ASAP - and take notes.
Online shopping giant Amazon.com Inc. (NASDAQ: AMZN) shook off the lockdown blues and soared as people hit the net to buy stuff - a lot of it discretionary. Zoom Video Communications Inc. (NASDAQ: ZM) did the same thing as businesspeople went online to conduct meetings. Apple Inc. (NASDAQ: AAPL) and Microsoft Inc. (NASDAQ: MSFT) skyrocketed during the 2020 pandemic as people equipped themselves to operate their lives online.
Just as the above recovery stocks have dropped with the recent spike in COVID-19 cases, these "stay at home" stocks have been on the rise and will likely continue to go higher.
There are many more stocks in each of these sectors that are likely to move as they did in 2020 if the delta variant takes hold and drives us all back indoors.
What's different this time around is that we now have vaccines to not only interrupt the spread, but to also protect those who have been fully vaccinated from severe disease and death. So the S&P 500 is less likely to tank 35% this time.
That said, simply the threat of a repeat performance of 2020 should drive some downward volatility... and some profits for us.
The Quickest Way to Get That 500% Return
The simplest way to profit on a potential drop in the S&P 500 is to buy 30- t0 60-day out-of-the-money (OTM) puts on the SPDR S&P 500 ETF (NYSEArca: SPY).
For example, right now with the SPY trading around $430, the SPY Aug. 23, 2021, $420 puts would cost you $4.90 per contract - or $490. If the S&P 500 were to drop 10% over the next month, these same puts would be worth approximately $30 - a 500% return.
If you want to give yourself more time, buy options that expire further out in time.
Of course, this is only one of many ways my scanners are lining up quick profits this month.
Since we're right in the middle of earnings season, it's not uncommon for massive speculative surges to emerge before or after certain announcements.
And every year, I watch as people make the same mistakes, buying "the news" only to be let down.
With so many new, inexperienced traders flooding the markets over the last year and a half, it should come as no surprise that the dumb money is running wild.
An uptick of this scale in trading volume brings new opportunities like we haven't seen before.
That's why my team and I came up with an all-new algorithm to track complex market surges before they strike.
I call it BRUTUS.
And our backtesting showed it's capable of spotting powerful signals that can produce gains like:
- Mitek - 650% gain in just eight days...
- Dril-Quip - 331% gain in nine days, and...
- PennyMac Financial - 300% in just three days.
For perspective, that means a simple $1,000 trade in PennyMac Financial could have turned into $4,000 in just three days.
That's certainly not an opportunity you'd want to miss...
And you don't want to miss this opportunity either.
Because I've lined up 10 stock patterns - including tickers and projected surges - that you can trade today.
And get this: My readers have already won big from this custom-built system, scoring 63% in eight days… 76% in six days… 90% in just over a week, and more.
Red Alert Frequently Asked Questions
Or to contact Money Morning Customer Service, click here.