Double Your Money Overnight if China Keeps Falling
Like an unexpected punch to the gut, the major market averages opened today in a sea of red ink…
At one point, the Dow Jones Industrial Average premarket futures were down 650 points…
And the S&P 500 and Nasdaq 100 were both down 1.7%…
It was a brutal way to start a new trading week – and the reasons for the avalanche were fivefold:
- China: The Hang Seng Index plunged 4% – as China’s Evergrande Group is now on the brink of default, which is sending ripple effects throughout the global markets.
- The Federal Reserve: This Tuesday, the Fed will begin a two-day meeting – and investors are worried that we’ll get more signals of pulling away monetary stimulus amid surging inflation and improvement in the job market. Fed Chair Jerome Powell will hold a press conference Wednesday to summarize and conclude this two-day meeting.
- COVID-19: Cases of the delta variant continue to rise at an alarming rate – which only adds to the uncertainty.
- September: According to the Stock Trader’s Almanac, September has the worst historical track record of any other month – averaging a 0.4% decline. So September weakness is only compounded by this statistic.
- Washington: As the deadline to raise the debt ceiling approaches, it’s now time to pass funding bills to avoid a government shutdown – which is always a trigger point for uncertainty and nervousness.
Add it all up, and it is a perfect recipe for a massive downside move.
As an investor, how do you manage these massive red days?
And more importantly…
How do you position yourself to profit if the Chinese weakness continues?
I’ll tell you exactly what I told War Room members last week…
Direxion Daily FTSE China Bear 3X Shares (NYSE: YANG) is a 3x bearish inverse play on China. So, if the FTSE China 50 Index goes down 1%, YANG will go up 3%. See how that 3 to 1 inverse works? Long story short… if China is in trouble – and you want to make money as it keeps going down – YANG calls might be the cheapest, most leveraged way to position yourself.
To add some clarity, Direxion Daily FTSE China Bear 3X Shares is a special, leveraged asset that moves at a rate of 300% the inverse (or opposite) of the daily performance of the FTSE China 50 Index.
When it comes to protecting yourself against future weakness, it’s the simplest, cheapest and (in my view) best way to make money as Chinese stocks move lower.
Last week, I instructed War Room members to move into call options on Direxion Daily FTSE China Bear 3X Shares. And first thing this morning, as the Hang Seng Index crashed 4% overnight, members sold their calls and locked in a 67%-plus winner overnight.
Here’s what members reported first thing this morning – all as the markets were crashing…
“YANG: Open $1.70, out $3.00 – Nice start for today.” – Ralph F.
“I entered 2 positions for a combined 113% gain. Thanks a million Bryan.” -Paula S.
“In at $1.75, out at $2.85. That’s how it’s done BB, ty.” – KDub
Action Plan: If the Chinese markets keep falling, you can double your money overnight playing Direxion Daily FTSE China Bear 3X Shares calls. Or if options are too complex for you, simply buying it just like any other stock would make you money – if Chinese stocks trade lower. In my opinion, Direxion Daily FTSE China Bear 3X Shares is the simplest, cheapest and most powerful way to profit off more Chinese weakness. Members just made almost 70% overnight inside The War Room – and they just might do it again!
If you’re ready to take the next step in your investment journey with us but aren’t quite ready to trade options inside The War Room, then Trade of the Day Plus is perfect for you. Every Wednesday after the close, you get our top pick – delivered straight to your inbox – all in video format. And right now, we are guaranteeing we top our 83% win rate – or you get a second year of access for FREE. Click here to get in before our next pick goes live Wednesday!