Rallies in a Bear Market Aren’t What They Seem

Dear Profit Takeover reader,

Don’t be fooled by the pops we’ve been seeing…

We are still very much in a bear market – with the S&P down about 400 points from the 4,800 high at the beginning of the year.

From Yahoo Finance

I mentioned yesterday that rallies in a bear market can be better than rallies in a bull market…

Because the price has more room to pop –

But rallies are short-term in a bear market, and you have to stay on top of those trades.

If you want a longer option, I wanted to share another trading strategy to make money when the overall market is down.

Here’s one way you can utilize puts to profit…

Puts are especially useful in bear markets – like the one we are seeing right now.

My friend and Head of Trading at The Option Pit, Licia Leslie, is joining today’s Profit Revolution Lifetime session at 1:00 p.m. (ET).

The last time Licia visited, she gave us three put trades that made profit in less than a week.

Today, she and I are going to be focusing on different ways to trade puts in a bear market.

Each week, I have the opportunity to deep dive into another trading secret and sometimes I can get more experts to join us and share their expertise.

Licia Leslie is a candlestick expert with over 25 years of experience in the finance and trading spheres.

If you haven’t already joined the Profit Revolution Lifetime, you can still save your seat for today’s show at 1:00 p.m. (ET), if you SIGN UP NOW or call Gabe and his team at: 877-848-3418 if you have any questions.

If you want to see us at 1:00 today, make sure to sign up for LIFETIME right here.

Hope to see you there.

Until next time,

Mark Sebastian
Founder, Profit Takeover

Volatility Forecast

My VIX light is still green… meaning volatility is set to keep moving higher.

VIX is still over 30, and the futures curve is in backwardation.

From Yahoo Finance

We could see the curve flatten up today if the market continues to rise…

But these short-covering rallies have been hard and fast.

I would not sit on long calls for more than a day or two at this point.

LIVE SCHEDULE

Friday 3/4: 9:30-10:00 a.m. Profit Takeover Featuring Brian King

TODAY’S WATCHLIST

1. Intel Corporation (NASDAQ:INTC)

INTC looks like it wants to break back over 50.

I would consider calls here – but as I said earlier, don’t hold them too long.

2. Energy Select Sector SPDR Fund (NYSEARCA:XLE)

Oil may have peaked in the short-term.

This could be a good time to unwind some XLE long options for a few days as it resets and will head back up toward $100 per barrel.

3. Ford Motor Company (NYSE:F)

It looks like F wants to make a run at 20 again.

This stock got way oversold.

I like long calls for March at $18.50 or $19.

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