Market Reset: Riding the Wave of Economic Recovery

Editor’s Note: Jonathan Rose, a former trader at the Chicago Board Options Exchange (CBOE), specializes in market strategies that have historically created substantial wealth for a few. Now, he breaks down these sophisticated strategies for everyday people at Masters in trading.

In light of the recent presidential election, Jonathan predicts that the market is ready to embrace risk once again, revealing potential for significant profits. Join him for a free live Masters in trading event next Tuesday, aimed at helping individuals learn how to navigate the financial world effectively against the “smart money.” Click here to sign up for the live event. Meanwhile, let’s dive into Jonathan’s insights on capitalizing from the post-election rally…

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We are observing a significant global economic transformation.

This shift began in September when, amid cautious market conditions leading up to the election, the Federal Reserve took its first step in four years by lowering interest rates by 50 basis points.

In October, despite inflation numbers cooling less than expected, the Fed issued another 25-basis point cut, sparking a robust stock market rally.

These rate cuts represent a turning point for investors.

For the first time in over four years, the markets appear to be ready to embrace risk.

This assertion, while bold, is backed by the Fed’s significant impact on global markets.

Shortly after the Fed’s September cut, the People’s Bank of China revealed a fiscal stimulus package to address its own economic challenges. Similar rate cuts and stimulus efforts are emerging in regions from Europe to Southeast Asia.

As a new U.S. administration aims to reduce regulations across multiple sectors, Wall Street is poised to leverage this market opportunity filled with fiscal stimulus.

During this trend, I have aided my readers in securing impressive returns of 49%, 84%, and even a striking 197% trading on current market momentum.

Key Sectors for Potential Gains

Which sectors should we focus on to harness the energy of this economic stimulus?

Particularly valuable are assets linked to critical components of the global supply chain, especially precious metals and commodities, as these sectors are tightly connected to major industries such as automotive and semiconductor manufacturing.

Recent market data post-election supports investment in supply chain-related stocks.

The S&P steel sub-industry index, featuring companies like United States Steel Corp. and Steel Dynamics Inc., surged by up to 14% over two weeks—the largest increase in over 14 years.

Moreover, indices like the Dow Jones and S&P 500 reached record highs this past month, driven by mining stocks and metals such as copper, lithium, gold, and silver. Despite a slight dip in demand, the market has yet to show signs of bottoming out.

Given this evidence, now is the ideal time to invest wisely.

A mantra I frequently stress is that education reduces risk.

Identifying the best investment opportunities hinges on our understanding of market volatility. As options traders, we base our strategies on volatility rather than on market direction.

In fact, conditions are ripe for us to take a short position on volatility.

Investors looking to capitalize in the tech space should closely monitor stocks affiliated with semiconductor companies, automotive manufacturers, and other hardware producers in the upcoming weeks.

Steel stocks—including United States Steel Corp. (X), Steel Dynamics, Inc. (STLD), and Cleveland-Cliffs Inc. (CLF)—have experienced notable gains recently, with all three rising over 10% since October.

Although some short-term volatility has affected these stocks, they continue to rally, with United States Steel Corp. returning to its pre-election levels, marking key moments for a short-volatility trading setup.

If you are interested in trading essential metals such as copper and lithium, now is an opportune time for short-term trades on various mining stocks. Although copper prices have recently declined, companies like Freeport-McMoRan Inc. (FCX) and Southern Copper Corporation (SCCO) are remaining resilient beyond their expected performances.

I am tracking additional stocks that present excellent prospects for capitalizing on the current volatility in these markets. My aim is to empower everyone to engage with the current stock market advantages.

However, timing your stock purchases is only part of the equation.

Planning Your Next Investment Move

A substantial number of options traders are currently investing in the leading companies in metals and commodities.

Wise investors have a knack for quick options plays that generate double- and triple-digit returns in less than 72 hours, often within 24 hours—without the need to hold positions for days or weeks. It’s crucial for everyone to recognize that opportunities remain to join in while the smart money thrives.

This is why I have developed an options trading strategy that consistently outperforms the competition.

We always seek similar conditions across our positions, focusing on where market makers are placing their bets…