Today was the start of the third quarter and with it came some craziness as a mix of news made it clear that the country is still deep in economic problems. Prices rose early in the session, fell sharply for much of the day and then recovered in late afternoon.
Oil prices keep rising higher and higher and the Dow Jones just finished the worst first half since 1970, when the country fell into recession. The more diverse S&P 500 and Nasdaq indexes had their worst first half since 2002, when Wall Street was still suffering through the aftermath of the dot-com bust, the Sept. 11, 2001, terror attacks and a recession.
I don’t need to rehash this, because everybody is getting enough of it via their television sets and the internet.
The bottom line is that we are facing some very difficult times in the US and there is no bright light at the end of the tunnel that we can see. Or is there?
WHERE THERE IS RUIN, THERE IS PROFIT:
I am a firm believer in this. While studying finance, it always amazed me that when the overall markets were taking a beating, there were ALWAYS individuals who made money.
If you think about this, every time there is a recession or even worse, a depression, there are very intelligent investors who make money during those dark times. I don’t mean they make money by shorting stock, even though that happens much more now than it did a few decades ago, but they actually make money by investing in stocks.
I was mentored by one of the top floor traders on the Chicago Board Options Exchange (CBOE) and he always would trade against the masses when the markets turned really ugly or too optimistic. He used the Volatility Index (VIX) as his bible and would always trade when it reached extreme levels. Since that time, the VIX’s trading range is not as black and white as it was back then, but it is still very useful.
You might have heard about the VIX, but don’t understand what it is. The VIX is an index that measures the levels of fear and complacency in the market. It is derived from a complicated formula of comparing put and call buying on the CBOE.
What it all means is that when there is a ton of put buying, which is a bet the market is going down, the VIX goes up, implying significant fear levels. When the VIX is low, there is more call buying, suggesting less fear and a stronger market.
When it reaches these extreme levels, it means that the herd (the investing public) has decided the market is either going north or south, depending on which way the VIX goes. When that happens, intelligent investors/traders make a bet against the general public and right now, there is a lot of put buying as the markets head further and further south.
Whether you know it or not, there are opportunities that come up on the radar screen during these tough times that can enable you to make money in a down market. You can bet that the top echelon of players in the financial community know this to be very true and exploit it when they can. This type of information the elite players do their best to keep from the general public. They want the media to keep pushing doom and gloom, because it only enhances their positions in stocks that go against the trend.
FINDING A RECESSION-PROOF OPPORTUNITY:
Most of our members know that we haven’t profiled any companies since October 2007.
We have done this because we knew that 2008 was going to be a pretty bad year in the markets and we wanted to sit on the sidelines until we found a company that could withstand the current market turmoil we were expecting.
We do know it has taken some time to deliver this, but all of us at The Stockwire Group feel that we have found an incredible company that is worth introducing to our Elite Stockwire Members.
This is a company that has the ability to profit in a recession, because they are located in a recession-proof industry.
I spoke earlier about smart investors making money in recessions. What I meant by that, is that there are companies that thrive during these bad times and because of that, intelligent investors invest in these companies and are able to participate in their stock appreciation during economic down turns.
Regardless of how the Dow Jones is performing, these companies post positive numbers and shine during a bear market or recession.
The current company we are about to introduce to our members in the coming week, is a company that we feel has the ability to succeed and grow in this market environment.
Because we waited this long, we really feel that our patience has paid off and we are extremely excited to be bringing this opportunity to our Elite Stockwire Members.
The official launch of our first company since 2007, will be Monday, July 7th at 4:30 PM EST , right after the 4th of July weekend, but we will be sending out an email tomorrow, Thursday, July 3rd, that will briefly go over the sector the company is in.
So be sure to pay close attention to your email inbox this week, because you are about to be part of one of the largest campaigns Stockwire has ever embarked on since its existence!
arate419
StockwireAdmin
Today was the start of the third quarter and with it came some craziness as a mix of news made it clear that the country is still deep in economic problems. Prices rose early in the session, fell sharply for much of the day and then recovered in late afternoon.
I was mentored by one of the top floor traders on the Chicago Board Options Exchange (CBOE) and he always would trade against the masses when the markets turned really ugly or too optimistic. He used the Volatility Index (VIX) as his bible and would always trade when it reached extreme levels. Since that time, the VIX’s trading range is not as black and white as it was back then, but it is still very useful.
Whether you know it or not, there are opportunities that come up on the radar screen during these tough times that can enable you to make money in a down market. You can bet that the top echelon of players in the financial community know this to be very true and exploit it when they can. This type of information the elite players do their best to keep from the general public. They want the media to keep pushing doom and gloom, because it only enhances their positions in stocks that go against the trend.
So be sure to pay close attention to your email inbox this week, because you are about to be part of one of the largest campaigns Stockwire has ever embarked on since its existence!
