Buckle Up, Buttercup... and Get Ready to Buy

You're receiving this email as part of your subscription to Lou Basenese’s Trend Trader Daily [Unsubscribe](. [Trend Trader Daily] Buckle Up, Buttercup… and Get Ready to Buy Tuesday, March 8, 2022 My kids cringe when I tell them, “Suck it up, buttercup.” But they’ve come to understand my situational lack of empathy serves a purpose. Overcoming adversity strengthens us, builds character. And if we can embrace it on the front side, we come out the back side all the stronger and more mature. Guess what? The same can be said for us as investors. With the entire world focused and terrified on the escalating repercussions of Russia’s invasion of Ukraine, I hate to say it, but it’s time to buckle up, buttercup. At least for a little bit. Here’s why — and of course, the upside to any additional downside… > ADVERTISEMENT < May 20th: The End of the American Dollar? Behind the curtain of the pandemic, America's elite have secretly launched the biggest attack on your wealth since 1971. Tech expert Jeff Brown warns: "If you have more than $2,500 in savings or stocks, YOU MUST ACT NOW, before it's too late..." [Go here to find out what you MUST do to secure your wealth.]( Hello Volatility, My Old Friend Volatility has returned with a vengeance to the markets. And not just during normal trading hours. It’s perfectly “normal” now for futures to swing 1%+ up or down before trading even begins. Making matters worse, as Bespoke Investment Group notes, “One thing we can pretty much bank on here is that equity indices will not finish the day where futures are currently trading.” So true. And I’ll be the first to admit that all this back and forth can do a number on our nerves, which is going to make my next statement unpopular: Get ready for even more volatility! Look no further than the commodity space… Not only did oil soar to a 13-year high over the weekend to briefly touch $140 per barrel, but it gave back most of those gains on Monday. Then there’s nickel. Prices more than doubled to over $100,000 per metric ton in early trading today, forcing the London Metal Exchange to halt trading. Such swings make the volatility in stocks seem benign. But make no mistake, I know it doesn’t feel that way. So don’t kill me when I tell you that the trend points to stock volatility continuing. Instead, take a look at the chart below and realize two things: - On the rise: Over the last 50 days, the average daily price change for the S&P 500 and Nasdaq both soared to top 1%. Understand that a 1% move in the major stock market indices translates into 5%+ daily moves in individual stocks… or even more as you go down the market cap scale into small- and micro-caps. In other words, that’s a lot of price-change induced pain. - Far from a peak: Despite the sharp rise, we’re still far from the peak experienced during the COVID crash, when we had to get used to 3%+ daily swings. I know we’d all like to block out that time period, but it’s particularly instructive right now. Even though we feel like the volatility right now has never been worse, that's not true. (click image to enlarge) The Upside to More Downside Long story short, with no end in sight to the Russia-Ukraine conflict, continued volatility is likely. But don’t you dare think about giving up or panicking. Why? Because we’ve survived and thrived from way worse. In fact, the post-Covid rally was one of the most profitable periods in the history of my career, and one of the most profitable periods for many of you here who are my subscribers. And I fully expect the current downturn – this time because of an unexpected war, not a virus – to deliver the same types of opportunities. The key is to keep our heads and be prepared to buy. That’s the quickest way to get back to even and then way ahead. I know that’s easier said than done because all the short-term price volatility can be scary. But the historical reality is clear — we should actually savor these set-ups, just like an athlete savors the pain of intense workouts because of the long-term gain of increased fitness. In other words, we’ve been here before, and we emerged stronger and richer. And I fully expect this time to be no different. So buckle up, buttercup! And get ready to buy. What exactly should we be ready to buy? Well, the list keeps growing to include broken IPOs, beaten down biotechs trading below cash, compelling tech takeover targets, and sector-specific ETFs poised for a massive rebound. Rest assured, I’ll keep you informed on all the opportunities here.   FOR TREND TRADER PRO READERS ONLY > [LEARN MORE]( < Ahead of the tape… Lou Basenese Founder & Chief Investment Strategist   Copyright © Trend Trader Daily, All rights reserved. You signed up on []( Our mailing address is: Trend Trader Daily 301 S. 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