Slim pickings so far this year, but all’s far from lost…
The markets aren’t reacting well to new COVID outbreaks in China and the war in Ukraine. Look at this chart of the S&P 500 ETF TRUST ETF (NYSE: SPY). It’s been falling since January…
Don’t let those last few green days fool you. The market’s running into resistance and the global outlook isn’t getting better. Here’s what I’m reading in the news…
Source: Markets Insider
But there’s still a way to make money in this market.
Fear turns into volatility — and volatility can turn into profits.
The world events are unfortunate. But as a trader, it’s my job to take advantage of opportunities wherever I see them.
These are the sectors I’m watching right now for continued volatility…
My Top 3 Sectors to Watch Now
I search for stocks within hot sectors to narrow down my watchlist. And I find hot sectors by watching the news and studying recent runners.
#1: Cybersecurity
Back before the internet, enemies had to drop bombs to destroy infrastructure from long ranges.
But these days, cyberattacks have become an effective weapon that can deploy from anywhere on the globe. This headline grabbed my attention…
Source: CNN
Any stocks that offer defense capabilities look bullish to me.
#2: Oil and Gas
This sector has already experienced some big runners. Take a look at this chart of Indonesia Energy Corporation Limited (AMEX: INDO)…
Russia is a huge global supplier of oil. Ever since tensions rose in Ukraine, oil stocks have been inching higher.
It wasn’t until the invasion that we saw huge spikers like INDO. Prices have fallen a bit, but the war isn’t over. And as tensions rise, I suspect prices will surge.
#3: Agriculture
War puts pressure on trade partners. For example, the U.S. and its allies responded to Russia’s invasion of Ukraine with strict sanctions. And sanctions make commodities more expensive.
Source: The Hill
But people need food. They’ll always need food.
As prices rise around the world, food will continue to trade and prices will go up.
My #1 Pattern Right Now
When it comes to day trading, you’ve gotta know more than just hot sectors.
I only trade when these stocks fit my specific pattern. I’m buying with the highest likelihood of a follow-up spike. And if the pattern fails, I just cut the trade and move on.
It’s not a complicated strategy, but it takes practice and a lot of discipline.
See how I’m trading in this market!
Use this information wisely. This is a dangerous niche no matter how good you are.
With great power comes great responsibility,
Roland Wolf
Editor, The Wolf’s Den
