The S&P 500 slipped even further Friday and the major indexes looked to close out a downright miserable week, month and quarter.
As we discussed in Wednesday’s WealthPress Live Roundtable, I think we’re going to see the market give back all the gains it’s realized since the pandemic, gains that were in large part due to all the fake money the Federal Reserve pumped into it…
As I pointed out, the Dow and Russell are already back to pre-pandemic levels.
And odds are it won’t be much longer until the rest of the market follows.
But you know me… I couldn’t care less what the market is doing — because the choppiness has led to some great trading opportunities!
Here’s what we’ve been seeing…
Bottom Fishing in Banking Stocks
I prefer to trade individual stocks, but I also don’t ignore a trend when it’s right in front of my face.
And right now, I’m seeing banks — U.S. banking stocks in particular — getting some love.
Rates are going to stay high, meaning bank stocks have an opportunity to play catch up. The current economic climate has people scared, especially buy-and-hold investors.
And while it’s not my style, it’s understandable that some might want to park their money in the bank and collect that 3%-4% money market rate so they can sleep well.
With that influx of capital, banks stand to make a ton of money because people can use that capital to buy bonds… which the banks make money selling, as my pal Jeff Zananiri pointed out.
And go figure…it’s a trend the smart money has its eye on!
Over the past week, we saw large institutional traders going bottom fishing in names like Citigroup Inc. (NYSE: C) and JPMorgan Chase & Co. (NYSE: JPM).
While I took part in some of these trades, I’m staying away from the non-U.S. banks like Deutsche Bank (NYSE: DB) and Credit Suisse Group (NYSE: CS), which have already fallen hard.
You can catch the rest of my Roundtable discussion with Senior Strategist Roger Scott and Joy of the Trade’s Jeff Zananiri right here.
And be sure to bookmark this link and join us every Wednesday at 11 a.m. EDT.
I can’t believe it’s been a whole year already since we launched Wiretap Trade Alerts!
And a lucrative year it’s been…
If you’re not familiar with our Wiretap Alerts — our “weekend trades” — here’s a quick breakdown…
- Average hold time: one trading day — enter late Friday, close early Monday.
- Win rate: 70.7%* (111 winners to just 46 losers).
- The past year’s gains, from Sept. 21, 2021, through Sept. 23, 2022: 502%!!!*
You can see why this has become one of my favorite strategies — and why our members love it!
Even better, we’re doing something special to celebrate our success…