What a Red VIX Light Means for the End of 2021

Watch Me Live Trade These 4 Stocks at 1:30 PM

I’m going to go through all four of these stocks and show you exactly how to trade each of them during today’s Profit Revolution trading session at 1:30 PM ET.

And you can tune in… even if you’re NOT a member.

That’s right – our Open House continues today. And you can watch my trading session for free right here at 1:30 PM ET.

1. Tesla Inc. (Nasdaq:TSLA)

Elon Musk exercised the last of his TSLA options this week, meaning he’s likely finishing up his tax selling. I wouldn’t be surprised to see a soft TSLA today… followed by a POP tomorrow.

2. Berkshire Hathaway Inc. Class B (NYSE:BRK.B)

BRKB is over $300 today. In the past, this has been in an inflection point. It can’t seem to hold above that number – its 52-week high is only $301.58.

But when you look at this conglomerate’s holdings – Vanguard, Blackrock, Morgan Stanley, Bank of America – you see the stock’s potential strength.

I think we could see BRK.B make a move to $310 in the new year.

3. FuelCell Energy Inc. (Nasdaq:FCEL)

After reporting a decline in revenue that missed analyst expectations, FCEL is tanking. As I type, it’s down almost 14% on the day.

FCEL Dec 2021

Any time a stock dips this fast, it’s on my radar. And now I’m just watching to see how low the stock can go before it stops its freefall.

4. Peloton Interactive Inc. (Nasdaq:PTON)

PTON was massacred this year. It’s lost over $100 since the start of 2021. What was once a $171 stock looks on deck to drop below $30…

PTON 2021

And I’m looking to buy puts. You can tune into my Profit Revolution Open House at 1:30 PM ET to see me trade PTON!

VIX Light Is Red – Expect Volatility to Drop

Well, folks, it finally happened – my VIX light has turned red for the first time since before Christmas!

Despite my belief that there’s still the potential for a one-off major drop, all four of my VIX light indicators are red. So I am turning it there!

We’re still seeing softness in the Nasdaq, but market breadth as a whole is not bad. I wouldn’t be surprised to see a strong Dow and a flatter S&P as we head into the new year, with the Nasdaq shedding some dollars.

That said, if we are going to see weakness before the new year, it’s going to be TODAY.

Today is the last day to sell stocks in 2021 if you want it cleared for tax purposes. And that’s a big deal for institutional traders.

It’s possible we could see some big-money traders selling their positions today, bringing the broader market lower in the third-to-last trading day of 2021.

Speaking of big-money traders… let’s see what they’re buying…

Big Money, Meet Big Banks

Yesterday, we saw a big call spread buyer in Citigroup Inc. (NYSE:C):

This is a straight bullish play, the customer buying the March 18, 2022 $62.50 calls and selling the March 18, 2022 $70 calls for a net debit of $1.64.

Remember – as inflation grows, the banks could benefit. And I agree with this bullish big-money buyer. I think there is still some nice upside in the banks.

But you don’t have to zero in on C to see that. Look at the Financial Select Sector SPDR Fund (NYSEARCA:XLF). This morning, it opened at $39.32, right below its 52-week high of $40.86. And before we see any real selling in the market, we should see XLF hit a new high.

I’m looking at XLF – but I’m not playing it.

I’m long the January calls in BAC right now in the Profit Revolution. And I like this position, because I think BAC is going to $46 or $47 again in the near future.

Usually, this is information I’d reserve for my Profit Revolution rebels. But this week, I’m hosting an open house…

Meaning you can join our Revolution trading session for FREE today at 1:30 PM ET to see my exact trading plan for this BAC call.

---

Remember to tune in at 1:30 for a FREE Profit Revolution trading session.

Today’s session is usually reserved for my most exclusive group… LIFETIME members of my Profit Revolution service.

But today, you can tune in. And if you like what you see, you can join Profit Revolution lifetime for a bonus trade every week.

Just call 877-568-0407 to become a LIFETIME MEMBER!

See you at 1:30…

Mark Sebastian
Founder, Profit Takeover

---

Comments