The market has finally woken up to the reality of a COVID-19 second wave. US cases are up more than 15% in the last two weeks with cases rising in 18 states mainly in the South, West and Midwest. Global cases has also risen above 9 million with more than 450,000 fatalities reported.
The main news reported by Apple Inc. (NASDAQ:AAPL) last week was the introduction of new software for their Apple suite of devices at a virtual WWDC2020 press conference. However, some other prudent news in markets is the fact the tech giant also reported the re-closing of a dozen stores in the US across Florida, North Carolina, South Carolina and Arizona because of a recent rise in coronavirus infections. Although the company can still operate online, the closing of stores is an indicator of further downside for brick and mortar retailers across America.
The lockdown has also stunted the buying of physical gold in the form of jewelry, bars and coins. Gold prices however are still close to an eight-year high as investors have fled to a perceived safety during these volatile times.
So, with the somewhat bleak news flow this week, what are the stronger opportunities for traders to the upside?
In this interview Future of Wealth Head Trader Lance Ippolito teaches the following strategies on how he fishes out success in the market:
1… Hedging strategies (longs via call options and shorts via put options)
2… The outperformance of utilities when markets are volatile with high dividend yields.
3… With the Fed being reckless, having to at least consider precious metals in the form of lower priced gold and silver miners.