DAILY ISSUE In Today’s Masters in Trading: Live Earnings season is grabbing all the headlines this week. But there's a bigger story unfolding in the commodity markets right now… A huge divergence is brewing between crude oil and gold. And that widening gap has market pros on high alert this week. As President Trump's tariffs squeeze the budgets of oil exporters, crude oil is dropping fast. It’s now well below $65.00 a barrel. Gold, however, is telling us a different story. Unlike oil’s recent breakdown, gold futures are climbing fast. March’s big stock market sell-off was a huge boon for the yellow metal. And even with mass liquidations in gold over the last few weeks, investors just can’t resist the urge to double dip. They’re piling back in as they look for a safety net amid stock market swings and bond market uncertainty. And now all these big moves in crude and gold are sparking a frenzy of trading activity in the options market… Volatility in metals has inflated options premiums, while Brent crude futures are seeing record trading volume. These aren't just small moves – institutional money is repositioning in a major way. And wherever the smart money goes, we always follow. So join me for today’s Masters in Trading LIVE at 11 AM EST, where I'll break down the specific opportunities I’m watching out of this gold-oil divergence and show you how to position yourself alongside institutional traders.  | Chart of the Day: VIX9D Spike Signals Market Caution |  The gold-to-oil ratio has skyrocketed to 274.74, reflecting historical extremes we haven't seen in nearly two decades. This classic "fear pattern" usually shows up when investors rush to safety during uncertain times. The key spikes on the chart each correlate with periods of heightened fear in the market (i.e., the 2008-2009 financial crisis, the 2020 pandemic). We’re obviously seeing that dynamic play out right now. But things are a little different… The current level runs much higher than the previous spikes on the chart. Why? When this divergence appears alongside the elevated VIX9D reading we covered yesterday, it creates the perfect storm for market turbulence. High short-term volatility paired with the huge rush into assets like gold is one surefire indicator that investors believe we’re on the cusp of a longer-term market crisis. For traders, this market climate calls for defensive positioning. That’s exactly why we’re pivoting to fixed-risk trade setups. Our approach right now is about limiting our downside risk while profiting from the market’s wild swings. With so much traction in the options market, I see the gold-oil divergence as an opportunity to put that exact approach to work. Whether they’re inflationary bets on gold or bearish bets on crude, we have all the power as options traders to benefit from this widening divergence. Recommended Link | | The biggest change to global trade in 100 years. A chaotic stock market. Headlines full of doom and gloom. Believe it or not, there’s a way to not only survive this market, but even potentially make big gains. We’ll explain how during a special emergency briefing tonight at 8 pm ET. Click here to automatically sign up now. | | | | Got a Question? | Be sure to join me live on YouTube and ask me anything. I can’t give personal investment advice, but it’s a great way to connect directly with our trading community and make sure you’re getting the insights you need to help build a deeper understanding of the markets. | 90-Day Trade Hall of Fame | Cameco Corp. (CCJ) | Advanced Notice | 164% | 9 days | Harmonic Inc. (HLIT) | Earnings Advantage | 156% | 47 days | Shopify Inc. (SHOP) | Earnings Advantage | 117% | 37 days | Lemonade Inc. (LMND) | Advanced Notice | 107% | 16 days | Xponential Fitness Inc. (XPOF) | Short-Term Options | 76% | 4 days | Note: These trades represent previously closed positions. | Remember, the creative trader wins, |
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