As we come to the close of a hectic quarter… traders are still trying to put the pieces of the puzzle together to gear up for the second quarter of 2020. For the most part, it’s been pure chaos — as the coronavirus pandemic continues to damage the global economy.
I take pride in being known as The People’s Trader around here… so I opened up a discussion with my readers, and since it’s been a tough time for many of you out there… I want to try my best to help as many people out as possible.
As I looked through all the responses with my team, I found one common question: what’s going on in the market?
Well, at one point, the S&P 500 (SPY) was down 35% from its high… and the velocity of the move was unprecedented. If you just take a look at the heatmap for stocks (for Q1 2020), from Finviz, you can see there are very few stocks that are up.
Today, I want to walk you through exactly what’s going on in the market… but more importantly, how it directly affects you.
Of course, if you’re an investor… It’s been a tough environment. However, If you’re a trader like myself, this is an exciting environment. The moves I’m witnessing are anomalies, and there are plenty of opportunities to take advantage of.
Even though the market has been decimated, there have been pockets in the market that have been quietly skyrocketing… which is exactly how I’ve locked in more than $450K in March alone!
How have I been able to do that… and what the heck is going on with this market?
The State of The Market
Right now, there are a few large catalysts on the table… and I don’t believe they’re going away anytime soon.
As I mentioned earlier, the coronavirus is one catalyst on the table. It’s become widespread around the world, especially in large cities such as New York, Los Angeles, and other densely populated areas. In order to stop the spread, governments have advised citizens to practice social distancing.
Of course, if people are able to freely move, it damages the economy and specific companies. This has led to the one thing market participants hate: uncertainty.
The uncertainty led to panic selling… but that’s created opportunities for me. You see, the U.S. government passed a $2T bill, and I expect things will look up for the market very soon. However, there’s one thing to be mindful of in this environment… timing.
Timing Is Everything In This Market Environment
When it comes to fast-paced markets… timing is everything. It’s so easy to get caught up in the noise and buy stocks randomly — and get whipped by the market. However, I’ve found success in remaining patient and stalking for the right opportunities.
For the most part, I haven’t changed much with my trading style.
I’ve found that if you look for stocks with catalysts and develop a trading plan that includes simple buy, stop-loss, and target zones… it helps remove some of the emotions and time trades to near perfection.
That’s exactly what I’ve been doing in this environment — leading me to more than $450K in profits in March!
In order to prove to you that doing something as simple as looking for catalysts and writing down your buy, stop-loss, and target zones… I want to walk you through some of the ways I’ve been able to navigate this market with ease.
[Revealed] How I Locked In $4K In INO And $8K In CHFS
With the whole coronavirus pandemic, there are plenty of names I keep on my watchlist. Why? Well, it doesn’t seem like that catalyst is going away anytime soon.
Inovio Pharmaceuticals (INO) is one that remains on my list. A few weeks ago, INO actually took a hit and I figured it could catch a bounce. Here’s the chart I was watching in INO.
On the hourly chart, INO took a big drop… but it found support right around $5. With the massive gap down, INO had to potential to run up to $6.80.
So what did I do?
I planned accordingly. I waited for INO to start popping before I bought shares. My target zone was in the mid $6 area or higher… and I would stop out if the stock broke below the support level (the blue horizontal line).
So you could’ve had a plan like this:
Catalyst: Coronavirus stocks got hit today, but they could bounce since there is still news coming out… and I believe they could bounce.
Buy Zone: $5.50 – $5.95
Stop-Loss Zone: $5.00
Target Zone: $6.50 – $7.25
Pretty simple right?
I was able to pick up 12K shares of INO at $5.90 at 11:11 AM the day I traded it…
And guess what happened?
Just about an hour later, I was able to take my profits off the table!
In this market environment, it’s not only about getting into the trade… It’s also about knowing when to get out. If you overstay your welcome, it’s very easy to give back all your profits… and turn a winner into a loser.
$8K In Overnight Profits, In CHFS
For the most part, when it comes to my trading strategy, I like to keep it simple. Just take a look at the daily chart in CHF Solutions (CHFS).
With this specific chart, CHFS had support at $0.30, and had the potential to break out above $0.50 (a key resistance level).
The thing is, the chart signaled the stock could bounce… but I needed to find a catalyst. Guess what?
CHFS announced it was holding a conference call about its product and how it was being used in Italy to help with the coronavirus. This was just the following day after I spotted the potential trade.
With this specific setup, all of the buy, stop-loss, and target zones were pretty clear. However, I knew I wanted to be out of the trade before March 17 at 11 AM EST.
Shortly after I got into the trade, CHFS actually got to my target. However, I didn’t take my profits off the table because I thought it could have gapped up the next day.
Of course, as you can see, I should’ve taken off when it was in my target zone. However, I’m not too mad because I was still able to lock in a profit.
If you’re struggling in this market environment, don’t beat yourself up. I want to show you that if you can make sense of the market, there are money-making opportunities out there. For a limited time only, sign up to hear me, as I address The State of the Market
Attending this event could easily change the way you look at the current market landscape and provide you with a trading edge amidst this volatility.