According to the Stock Trader’s Almanac, September is the worst month of the year for the Dow Industrials, S&P 500, NASDAQ and Russell 2000.

But in 2024, we’re on pace to buck that trend.

In fact, the S&P 500 is currently up 1.6% for September.

Now, some of that market boost likely came from the Federal Reserve’s rate cut. But overall, it’s still a break from the norm.

And while some investors might be bullish on this news – I actually find this positive upward to be suspect.

In my 20+ years of trading, I’ve learned that Wall Street has a bad habit of overreacting – up or down.

And I recently crunched the data to prove how these overcorrections actually play out.

After backtesting 5 years of data, I’ve found that the truth is…

Wall Street’s overreactions present the best opportunities for traders.

Which is why I’ve devised a great, simple way to potentially take advantage of these “irrational moves.”

I call them “Gift Gap” trades.

It’s simple – all I have to do is find a stock chart with a gap pattern up or down, make a trade, and wait for it to gap back up or down depending on if I’m bullish or bearish on the stock.

One chart I’m currently looking at with this gap pattern is Fed Ex (FDX).

As you’ll see in the chart above, Fed Ex had a big gap down after earnings.

I think FDX could fill that gap quickly for one big reason, and that reason is the holidays are coming up. So increased shipping demand could provide the catalyst for an upward move.

When shipments start to get more prevalent, I could see the gap fill coming really quickly. Also, newsflash – Fed Ex is not going out of business anytime soon – so this is what I call a classic Wall Street overreaction.

YOUR ACTION PLAN

Fed Ex (FDX) is one ticker to keep on your radar as a potential gift gap trade over the next few months. And according to 5 years of back-tested data, if a gift gap triggers, you have a 97% chance that the gap is going to fill at least 25%.

And the average time it takes to fill that gap is just 23 days!

If you want to see more of these trades, I’ll be hosting a FREE live demo of an automated process that scans for these gift gap charts.

I’ll also be showing you live trade setup in real-time so you can see how the stock moves.

Overall, these gift gap trades are a great way to take advantage of Wall Street overreactions. And I believe we’ll start to see even more opportunities with an anxious election cycle coming.

If you want to see it live, I invite you to sign up for the Live summit this Wednesday, October 2 at 2 p.m. EST.

Click here to sign up for FREE today.