Don't Fear Chaotic Markets – Profit From Them
If you’re a buy-and-hold investor, this year has been a wash. On Inauguration Day, January 20, the S&P 500 was trading near 5960 points. This past Monday, it closed at 5935 points. So, if you’ve just been buying stocks and holding onto them, you haven’t made any money. But it gets worse for the buy-and-hold crowd. This year has also been highly volatile, with stocks swinging up and down dramatically. And volatility went into overdrive after President Trump’s April 2 “Liberation Day” tariff news. In April, the S&P 500 plunged 11% in only two days. That wiped out $6.6 trillion in stock market value. A couple days later, we got a one-day rally of 9%. This sent Wall Street’s “fear gauge,” the VIX, to a five-year high. The last time there was this much fear in the markets was during the early days of COVID and the global lockdown. That’s the story that you already know. But here’s what most folks don’t understand… If you know how to trade that volatility you can make big gains even while stocks are falling. I don’t make that claim lightly. I have the track record to back it up. Since Liberation Day, I’ve closed 19 winning trades out of 25 recommendations. Three for triple-digit gains and 15 for double-digit gains. Many in as little as a week. Some in as little as one trading day. And I haven’t just profited from volatility in 2025. I’ve harvested profits like these in some of the most volatile markets in living memory. In the wake of the 2008 market meltdown, I recommended trades to my subscribers that led to 100% gains 10 different times. And in 2022, when the tech-heavy Nasdaq plunged 32%, I gave my subscribers 12 different opportunities to double their money. How did I do it? And how can you do it next time volatility strikes? I’ll show you today. Plus, I’ll do my best to convince you we’re in for more extreme volatility in the months and years ahead. The Stock Market Is Like a Rubber Band So, how have I been able to make profits amid surging volatility? To understand how it works, imagine a rubber band. We can all tell when a rubber band has been stretched close to the limit. The rubber at the center of the band stretches thin. Its color fades. And it starts to vibrate. That’s when it snaps back. The same thing happens with stocks… and even stock market indexes like the S&P 500 and the Nasdaq. The further they stretch in one direction, the more likely they are to snap back. I call these extreme stretching of stocks outside of their average ranges a “chaos pattern.” Because we tend to see these overstretched conditions happen the most when the stock market is going through a chaotic period like we saw after Liberation Day. As a trader, I wait until a stock or stock market index gets stretched to an extreme. Then I bet on it snapping back. Let me give you an example of a “chaos pattern” trade I recommended to my subscribers… Trading Chaos In November 2023, I spotted a chaos pattern in Beyond (BYON), which owns the failed brand Bed Bath & Beyond. The stock spent the previous three months in a free fall. It plummeted from nearly $38 a share in August to about $16 a share. In other words, Beyond was completely out of its normal range. You’ll notice how the stock’s price line was way below its 50-day moving average trendline (blue line) over that time.  It was clear to me the stock was oversold and ready to snap higher. On November 21, I instructed readers to place a bullish trade on Beyond. Two weeks later, the stock was up 40%. And due to how I structured that trade, my subscribers had the chance to close out a 329% gain in just 14 days. I’ve used this same approach to give my subscribers the chance to make… - 78% in three days on Marvell Technologies (MRVL)
- 132% in nine days on the VanEck Vectors Gold Miners ETF (GDX)
- 74% in one day on Target (TGT)
- And 117% in one day on the SPDR S&P 500 ETF (SPY)
When most people see volatility, they panic. But I see dollar signs – a lot of them. It’s these violent swings that allow us traders to potentially make HUGE profits in just a handful of days. I hope what I’m saying resonates with you, because I don’t see that volatility ending any time soon. New Approach to Building Wealth There are many reasons for this. We live in a world where a single social media post from the administration can send the markets into a frenzy… We’ve got economic and trade policies being proposed and implemented that are completely different from decades past… And we have a reordering of the global economy which could keep markets volatile for years to come… If you think it’s smooth sailing ahead, I have a bridge to sell you. If your goal is not only to survive in the Age of Chaos, you need an approach to building wealth that isn’t purely about buying and holding stocks for the long term. That’s why, next Wednesday, June 11, at 10 am ET, I’m hosting a special briefing about how you can profit using my “chaos pattern” strategy. It’s called Countdown to Chaos. I’ll also reveal a new software tool I’ve developed along with the folks at TradeSmith – along with 10 opportunities that can help you make these winning trades in chaotic markets on your own. Next Wednesday’s event is free to attend. All I ask is that you register in advance right here. Best regards and good trading, Sincerely, | .png)
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