Unprecedented Volatility Creating Enormous Short-Term Profit Opportunities

This election cycle's October surprise was the thermonuclear meltdown of subprime mortgages, whose implosion took down some of Wall Street's most venerable names and whose fallout also irradiated several of the nation's banks.

No investor in the world -- not one -- has been immune from this downturn. This year alone, as the U.S. benchmark S&P 500 Index has lost -35% of its value, international markets have seen even more dramatic plunges. There has been no safe port in this storm. Russia is down nearly -60%. China is off more than -65%. Brazil has declined -40%.

Historians and economists will spend years -- perhaps decades -- crunching the numbers and studying what happened, and how. But already, some conclusions can be drawn. Now, most people will start with the superficial. Yes, the Dow is down -20%. Yes, the dollar has regained some of its lost strength. And oil prices, indeed, have fallen.

But amid all that -- interesting financial side notes though they are -- one far more critical item stands out as the most important in this market. Properly harnessed, it can have the same effect on your portfolio as pouring gasoline on a smoldering fire.

What are we talking about? Volatility. It's the most precious commodity to active traders. No comparison can be made to the swings this market is seeing. It is, quite simply, unprecedented. There are some who have said it was mathematically impossible. But it's happening.

How volatile are the markets? Consider this. In October 2007, the peak of the current market, the Dow moved a total of 1,708 points. It fell nine days, recording triple-digit losses on four of those days, and the blue chip average rose in 12 of the month's sessions, twice in triple digits. Though it turned out to be the market peak, October was a flat month, starting at 13,895 and closing at 13,870. Half of the points it moved were up; half were down. It was, in fact, a pretty typical month.

What a difference a year makes.

In October 2008, the market experienced only three days without a triple-digit move. It fell a total of 4,672 points and rose a total of 3,146 points, opening at 10,831 and closing the month at 9,325 -- a dramatic 14% decrease. The broader market has only had two years since 1965 with a larger drop, and the Dow did it in a month, several hundred points at a time, losing ground for 16 sessions, including eight in a row that knocked 2,400 points off the index. The Dow recovered 2,812 points, moving a total of 7,818 points for the month -- a 357.82% increase in volatility compared to October 2007.

Were things that rough in the broader market? Every bit as bad.

The Chicago Board Options Exchange is the nation's derivatives capital. Millions of contracts based on thousands of underlying securities trade there each day. These sophisticated instruments allow their holders to take a position on which way the price of a given security or index is headed. The bullish bet with call options, the bearish bet with put options. By comparing those positions, in aggregate, the CBOE's Volatility Index gives some insight into how traders are feeling -- some even call the VIX the fear index.

In October 2007, the VIX was at a leisurely 17.8. Most of the time the index stays under 20. As the tech bubble burst, the index shot to 40. The Sept. 11 attacks pushed the index to 35. And right now, the index is at 70 -- a reading 75% above its previous high, a level some observers said was statistically impossible.

But it's not. That's the condition of this market. The Dow may inch up and the S&P may rise from its ebb, but volatility isn't fading. It may well be here to stay until the financial crisis blows itself out -- which could easily take years.

That's great news.

It's just simply wonderful. But only if you know how to harness the power of volatility to supercharge your portfolio's returns.

On that note, I'd like to introduce you to a colleague of mine -- an expert in leveraging volatility to generate enormous short-term profits. Aside from having a nearly 80% win rate for the past three-plus years, he's been making an absolute killing in this market for his followers.

Just look at his closed trades for October ...
 

And here's one more that he closed on the last day of September ...
 

Five closed trades, five winners, for an average profit of more than +60%, with an average hold time of well under a month.

So in October, while the Dow lost more than -15%, a select group of individuals utilizing our colleague's proprietary trading system was busy cashing in on up to +120.59% gains.

Now here's your opportunity to get in on these profits...

We've obtained permission to release ALL the names, symbols, and details behind our colleague's most recent trades. We've compiled this information into a special, single page report, and we're ready to release it to you. To get free instant access to this special report, all you need to do is go here and confirm your email address. We'll also let you know how you can get started generating double and triple-digit gains -- like the ones you see above -- in today's ultra-volatile market... 

Get This Report Now





 

-- Andy Obermueller
Investment Strategist
StreetAuthority.com
839-K Quince Orchard Blvd. 
Gaithersburg, MD 20878-1614