The Simple Trade That Made 100% in 19 Days VIEW IN BROWSER Talk about a sweet setupβ¦ Back in April, I spotted the chance to double my subscribersβ money in a matter of weeks with one of my signature trades. This was in the wake of President Trumpβs βLiberation Dayβ tariff announcements. Markets were in chaos. Volatility was spiking. And the TV news anchors and armchair analysts on social media were in full-on doomsday mode. But I wasnβt paying attention to the headlines or to the latest rant on X. Hereβs what caught my attention insteadβ¦ The tariff-war panic wasnβt just hitting random stocks. It was creating massive divergences between entire stock markets that usually move in sync. Iβve been a professional trader for the past 27 years. Iβve seen just about every kind of market you can imagine β the good, the bad, and the truly chaotic. And Iβve learned that when markets that usually move together suddenly break apart, you can make a lot of money betting on them coming back into line again. Thatβs exactly what happened in April. I bet on one of these divergences coming back into line again β and closed that trade 19 days later for a 100% gain. And itβs not the only βdivergence tradeβ thatβs led to triple-digit winners. Iβve used the same strategy to close out gains ofβ¦ - 122% in 35 days
- 127% in 5 days
- 142% in 39 days
- 322% in 32 days
- 411% in 39 days
- 752% in 40 days
- 805% in 70 days
- And 967% in 52 days
Now, a new major divergence is forming. And Iβm sharing all the details in a new on-camera presentation. I hope youβll hear what I have to say. Because it has the potential to deliver thousands of dollars in profits without you taking crazy risks with your money. Just ask one of my followers, Dan Bβ¦ The last time this same divergence happened he took a single position and walked away with a game-changing result. As he later wrote meβ¦ My account went from $44,325 to over $180,000 β on a single trade. So today, Iβll show you how divergence trades workβ¦ including the recent one that netted a 100% gain. First, letβs make sure you understand what a divergence is β and why itβs such a powerful trade signal to follow. Recommended Link | | Former Silicon Valley money manager Jeff Clark just released an urgent warning. He believes another huge correction could be just around the corner. According to him, βIf youβre thinking about putting money into a big tech stock or the NASDAQ right nowβ¦ donβt do it.β Instead, heβs advising a completely different money-making strategy. And itβs already uncovered gains of up to 1,285% in markets just like this. In his latest briefing, he explains the whole thing β step-by-step. Learn more here. | | | Forget Binary Bets β Itβs All About Relationships Picture a presidential motorcade. Lights flashing. Helmets of the motorcycle outriders gleaming in the sun. Blacked-out SUVs rolling along in sync. Same speed, same spacing, same mission. Everything is as youβd expect. But thenβ¦ one of the SUVs breaks formation and suddenly surges ahead. You know that canβt last. Sooner or later, it has to fall back in line. And sure enough, after a moment out front, the outlier SUV drifts back into formation. Thatβs exactly how I see the market. I donβt make binary bets on whether a stock will go up or down like most rookie traders do. Instead, I look for relationships between stocks that usually move together β but occasionally break apart. When that happens, I place trades that payoff when those relationships come back into line. This reframe β from guessing direction to tracking relationships β has been the foundation my success since I got my start as a trader on the floor of the Chicago Mercantile Exchange in 1997. In fact, one of my first big wins came when I spotted something unusual during the Nasdaqβs digital transformationβ¦ β¦a regular divergence between prices quoted on the trading floor and those quoted on the new electronic system. That pattern launched my career. And trading divergences like this has helped me make a lot of money as a trader over the years. Iβm talking more than $800,000 in 2006β¦ $2.3 million in 2007β¦ and $4 million in 2008 β during the worst meltdown for stocks since the Great Depression. Itβs not about trying to predict the futureβ¦. Staring at candlestick charts or memorizing Fibonacci patternsβ¦ Or chasing the latest βhot stockβ making headlines. All you need to do is spot when two related assets get pulled too far apartβ¦ and position yourself to profit when they come back together. Let me help you see what I mean with some examples. It Doesnβt Take a Genius to Spot These Divergences This first chart is of two e-commerce giants β Amazon.com (AMZN) and Alibaba (BABA). Normally, these two stocks move in line. But sometimes they diverge (red circles). Then those divergences come back in line again (green crosses).  Hereβs another classic pair of stocks that typically trades in line but sometimes diverges β rideshare rivals Uber (UBER) and Lyft (LYFT).  And here are gunmakers Smith & Wesson Brands (SWBI) and Sturm, Ruger, and Company (RGR).  Thatβs really all there is to it. Spot when the two lines are breaking apart and bet on them coming together again. Thatβs what I did for the trade I mentioned up top. Remember I said that the trade war was causing entire stock markets to diverge? The two stock markets I zeroed in on were Brazil and Mexico. Theyβre Latin Americaβs two biggest economies. Normally their stock markets move in line with one another. But Mexico is far more economically tied to the U.S. through manufacturing and exports β particularly autos β than Brazil. So, when President Trump ramped up his trade war rhetoric and floated the idea of a 25% auto tariff, the Mexican stock market got hit hard. Brazil is more of a commodities play with looser U.S. trade links. And it escaped the drubbing. So, the iShares MSCI Mexico ETF (EWW) and the iShares MSCI Brazil ETF (EWZ) began to diverge β with Mexico suddenly looking cheap relative to Brazil. Take a lookβ¦  That trade was simple: Place a bullish trade on the Mexican ETF and a bearish trade on the Brazil ETF. The result β a 100% gain in just over two weeks. With results like that, you may think itβs the wins Iβm most proud of. But what really motivates me is helping my community of apprentice traders learn to trade like the pros. More Than Just Trades β Itβs a Community At my Masters in Trading advisory, Iβve trained more than 100 professional traders and more than 30,000 subscribers. My subscribers are from all walks of life β retired airline pilots, pediatricians, building contractors, TV and film actors, you name it. And their feedback is hugely encouraging. Like this note from community member Carmine Sβ¦ Jonathan, thank you for all your knowledge and for your students who are sharing. I have more 100%-ers in the past several weeks compared to the last several years. You all are leaps abounds above anyone else out there. Or this from community member Nancy Rβ¦ After I retired, I was kind of bored and looking to be intellectually stimulated. Masters in Trading was the fifth group I joined. The best thing thatβs happened since Iβve joined is that now Iβm making money instead of losing money and understanding my trades betterβ¦ One of the things that makes me the happiest is connecting with people. Iβm a pretty social, gregarious kind of person, but I donβt want to spend my whole life going out to lunch with my friends. The community at Masters in Trading is small and you get to know people. Weβre all really one big family. Or this incredibly touching note from community member Brianβ¦ Last year was one of the hardest and best years for my family. My wife nearly died while carrying the last addition to our family, going into vtac at 8 months. The hospital bill for my wife was $250k and the bill for the beautiful baby girl she gave birth to was $500k. I would write down all the lessons Iβve learned from JR but honestly they are too numerousβ¦ I had bought and sold some stocks with some success, but that is the extent of my trading experience. I allocated $200k for trading via JRβs method and he doubled that in less than a year. JR youβre a legend buddy. I wish I had time to tell you more about my trading education programβ¦ and how to spot divergence setups. But Iβve gone on too long already. So, if you want to see how these trades work β and why a massive new divergence is setting up right now β watch my presentation here. Iβll get into a ton more detail about how you can use these trades to speed up your wealth building journeyβ¦ and avoid the wealth destroying mistakes so many rookie traders make. And remember, the creative trader always wins! Jonathan Rose Founder, Masters in Trading P.S. I hope youβll check out my new divergence trading presentation. It distills my nearly 30 years of experience as a professional trader into one short video. You can also catch me on my daily livestreams at 11 am ET every day the markets open at my Masters in Trading LIVE YouTube channel. On these livestreams, youβll getβ¦ - A professional traderβs morning check-in
- Insights into what sectors are moving the market
- And real-time setups you can follow in your account
This livestream video I recorded on Tuesday is all about divergence trading. |