There’s no way around it…
No sugar coating to be done…
No words to be minced…
We’re in a recession.
Even if the so called “leaders” of our economy want to dance around it, the fact remains true.
My friend and colleague, Amber Hestla, wrote in her report today that “As much as politicians want it to be, a recession isn’t a matter of political debate. It has massive negative impacts for everyone enduring it. Ignoring the reality won’t help anyone.”
(To keep up to date with Amber’s research in one of the best newsletters out there, check out True Options Masters. I read their reports every day. Fantastic stuff, especially for options traders.)
Amber goes on to point out that the S&P 500 loses an average of 36% during a bear market, about a third of what it gains during a bull market. We’re down about 23% from the highs, so she believes there’s more downside to come.
Now, while it’s certainly not all sunshine and roses, I’m not convinced it’s all doom and gloom either. I’ve made a lot more money betting on oversold bounces in stocks this year, and I expect that to continue.
Regardless, like Amber says, this isn’t a time to sit tight and hope everything will be okay.
Hoist the Sails
I was recently watching HBO’s House of the Dragon, and something I heard Lord Corlys Velaryon say struck me as extremely appropriate for this market.
Corlys said, “To elude a storm, you can either sail into it, or around it. But you must never await its coming.”
It reminds me a lot of how we’re navigating this volatility storm in the Trade Room.
To go around it would mean to liquidate your accounts and put your cash back in a boring savings account where it does nothing but collect dust.
To await its coming would be to sit and hold and watch your account bob up and down like a floating body in the waves of the ocean.
Both of these paths are easy, but neither are profitable. Neither is getting you ahead of record-high inflation.
So instead, we’re sailing into the storm. And with each small scalp we take profits on, it’s like we’re bailing water from our boats.
Like the 20% in NVAX Jonathan E. reported…
Sometimes even hitting triple-digit gains in stocks across the board…
Some as high as 265% like Tung made in BAC.
All of these comments are just from this morning…
These folks are learning how to become better, smarter traders with every second they spend in the Trade Room.
Learning to take these quick profits doesn’t come easy, but it’s critical to not get greedy in times like these.
And Bryan’s coaching sessions go a long way in helping people recognize their fears, rationalizing them, and overcoming them by sailing into the storm.
Great trading, people. This market may have beaten us down, but it will not get the better of us in the long run. We’ll overcome it, gaining the skills we need to ride the next wave, and even make some money along the way.
For more details on how we do just that, click here to learn about becoming a Trade King yourself.
Now, let’s see if my watchlist can help keep our heads above water.
The Kings Corner Weekly Watchlist
After a roller coaster week last week, the market jumped up this morning.
If this rally continues, here’s what I like this week:
Robinhood Markets Inc (HOOD)
Peloton Interactive Inc (PTON)
CTI BioPharma Corp (CTIC)
APA Corp (APA)
My free trade idea is to:
Buy APA October 21, 2022 $41.50 calls (for $0.77 at the time of writing).
As always, we won’t be tracking this free trade idea on any online portfolio. So, if you take it, you’re on your own.
But we’ve had five straight weeks of winning potential with these trade ideas, emphasizing the idea of cauterizing portfolio wounds that I mentioned last Friday.
If this streak keeps up, and this idea makes profits of 50% or more, you should consider getting out of it for a decent gain.
And if you make money on this or any idea shared in the Trade Room this week, email me at TradeKings@banyanhill.com and tell me all about it.
It hasn’t been smooth sailing for investors lately, but that’s all the more reason to stick with the crew. Click here to become a member today.
Editor, Kings Corner