As investors, we're always looking for ways to capitalize on opportunities in the stock market. The current state of the market can be tricky to navigate, but with the right knowledge and insights, we can make smart investment decisions.

In today's live Zoom session, I took a deep dive into the technical analysis of the SPX, NDX, and RUT, and discussed a potential trade set-up to profit from the opportunity. Additionally, I talked about why there might be an opportunity in the current banking crisis, specifically with SCHW.

Potential Bullish Opportunity

The S&P 500 (SPX), Nasdaq 100 (NDX), and Russell 2000 (RUT) are all key stock market indices. I looked at key technical indicators, including moving averages, trend lines, and support and resistance levels, to determine the current state of each index. While the SPX and NDX have been showing bullish signs, the RUT has been struggling to break out of its current range.

Based on my analysis, I suggested a potential bullish trade set-up that could capitalize on the current state of SPX. While I can't guarantee success, I believe that this set-up has a strong probability of generating positive returns. Check video for specific set-up.

To take advantage of this opportunity, you would need to have a solid understanding of options trading and risk management. It's important to remember that every trade carries some level of risk, and it's crucial to have a plan in place for both entry and exit.

Why SCHW Might Present an Opportunity in the Current Banking Crisis

The current banking crisis has left many investors uncertain about the future of the financial sector. However, there might be an opportunity for us to profit from the situation with Charles Schwab (SCHW).

SCHW is a leading financial services provider that has seen its stock price drop significantly since the start of the recent banking crisis led by Silicon Valley Bank. However, the company management has been active in buying it's beaten down stocks. See below for latest SCHW insider transactions.

As the market recovers from banking crisis, there is potential for SCHW to rebound and generate strong returns. But in any case I would hedge my long positions using slightly out of the money put options or vertical spreads. While at it, it's important to conduct thorough research and due diligence before making any investment decisions.

Final Thoughts

The stock market can be a volatile and unpredictable place, but with the right knowledge and insights, investors can make smart investment decisions.

However, it's important to remember that every investment carries some level of risk, and it's crucial to have a solid understanding of options, technical analysis, risk management, and due diligence before making any trades. By staying informed and making smart investment decisions, we can capitalize on opportunities in the stock market as and when those surface.

Feel free to ask questions or add you comments below.

Happy Trading.