One trade pattern keeps giving us perfect opportunities…
Anyone who followed my alert on Wednesday, July 8, banked BIG TIME.
This is exactly how I turned a $5k account into $493k.*
Learn my entire strategy TONIGHT.
We’ve traded this pattern over and over again in the last few weeks. It’s a money printer.
Sometimes, the price action is enough of a catalyst on its own. But when we pair it with a headlining global catalyst, it turns into an absolute gimme.
That’s the type of trade we made this week:
- Perfect price action.
- A catalyst that supports the move.
This setup repeats in the market… study our trade from this week.
There will be another one.
The Iran War
The ceasefire came and went.
On June 14, mediators announced a memorandum of understanding intended to end the conflict within 60 days by the presidents of the U.S. and Iran.
The framework was designed to restore shipping through the Strait of Hormuz in exchange for sanctions relief, with nuclear issues left to be negotiated over the following two months.
This week it all fell apart…
Monday, July 6: The UK Maritime Trade Operations agency received the first report that a tanker had been hit by a projectile off Oman.
July 7: Maritime authorities reported three commercial tankers attacked while transiting the Strait of Hormuz; the U.S. and Gulf nations blamed Tehran, and CENTCOM launched retaliatory strikes Tuesday evening against more than 80 locations.
The U.S. also reimposed sanctions on Iranian oil after initially agreeing to lift them for 60 days.
July 8: Iran responded with attacks on 85 U.S. military targets in Bahrain and Kuwait, and said it had also shot down an American MQ-9 Reaper drone.
Speaking at the NATO summit in Ankara, Trump said the ceasefire was effectively over. “As far as I’m concerned, it’s over”.
The U.S. launched another wave of strikes on at least 7 cities.
July 9: U.S. and Iranian forces exchanged overnight attacks for a second straight day. American forces struck about 90 Iranian targets, and Iran’s IRGC said it responded with drones and missiles at U.S. bases.
That afternoon, Jordan said it intercepted an Iranian missile attack, and the IRGC confirmed targeting Jordan’s Al-Azraq Air Base as part of a second phase of retaliation.
The War Catalyst
I never root for war.
It’s an ugly thing, and I always pray for peace in the world.
But to ignore the war’s effect on the market is naive.
We’re traders. We have to work with the market that we’re given. And there’s always a case to be made that the money we make from these plays can go toward making the world a better place, from each of our own efforts.
- Make donations.
- Use your free time to volunteer.
- Support your family members.
I’ll never shy away from a wartime catalyst, because I know how to use that money.
Outside of the AI sector, wartime catalysts can be some of the strongest in the market. That’s what made my trade on AAL so successful.
My Trade This Week
At the core of this setup, I was playing a stock that extended too far and was due for a rally.
We can play this setup on both sides…
- A stock that’s spiked too high can offer a pullback.
- A stock that’s fallen too far can offer a rally.
In this market we’re playing a lot of stock that fall and then rally.
Here’s another example from July 3.
On July 8, I noticed a stock that fell multiple days in a row, and the war catalyst hinted ata coming rally.
This is the alert I sent:
Trump watches the stock market.
He doesn’t want this war to take a bite out of investor’s profits.
We know this from how he dealt with the tariffs and the beginning stages of the war in Iran. He has an on-again-off-again approach that keeps investors mining for the next news that’s hot off the press.
And my bet was that some sort of new peace plan would hit the headlines. Plus, the price action was begging for a bounce.
Sure enough, the stock rallied the very next day and we exited for gains.
Here’s a chart of the multi-day move:
Here’s the price action intraday:
With short dated options contracts, a minimal percent change in the price is magnified exponentially.
On the chart, AAL spiked 7% off the lows from July 8. But with the right contract, that percent change can easily exceed a 100% gain.
We didn’t get the peace deal I had hoped for. Traders could have held some contracts for longer incase there’s a bigger bounce. But I opted to take the cash and move to the next setup.
I’ve seen this pattern over and over again in the market.
Study the price action from AAL, look for the biggest catalysts in the market, and use short-dated contracts to increase your percent gain.
Still have questions?
Join the live session tonight to learn my entire strategy. Front to back and top to bottom.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
