Whether you like him or not, Trump has been offering us some really profitable opportunities in the recent weeks.
Going after Russia gave us a great opportunity in oil, but his latest comments about North Korea have handed us the opportunity to take a payday like never before…
I’m talking gains of at least 220% here… and that’s being conservative.
Let me show you exactly how you can use this North Korean hostility to snatch that unrivaled payday…
Don’t let the latest talk about North Korea scare you…
With any sort of drastic global news comes volatile movements in markets across the globe, and with volatile markets come massive profits.
There’s many ways to play this one, but there’s one move you could make that’d provide you with some of the biggest gains you’ve ever seen.
When I first heard about Trump’s threat to unleash “fire and fury” on North Korea, I immediately turned to the stock markets in the surrounding countries.
The two that were most notably affected were the Nikkei ($NIKK) in Japan and the KOSPI ($KOSPI) in South Korea.
Both of them fell over 1.2% on Wednesday after the recent headlines.
But my focus remains heavily on the KOSPI, as I’ve noticed the potential for us to take an unrivaled payout from it.
Take a look at the chart of the KOSPI below…
It doesn’t take an experienced investor to see how overstretched the South Korean market has become.
You’ll see that it’s been bouncing back and forth, over and under that blue line (40-week moving average) for years—until 2017.
So far, it’s seen almost a 20% gain this year alone. That’s more than we’ve seen from our U.S. indices, and we know how overstretched they are.
As I mentioned, the KOSPI shed over 1.2% merely from a couple words uttered by President Trump.
North Korea seemed unmoved by these words, and that’s had an even bigger impact on the global market.
That’s why our opportunity lies in the fragility of the KOSPI.
Looking at that chart again, you’ll notice that each time it crossed above the 40-week moving average, it fell back under it by about the same amount.
This chart displays the market’s rubber band qualities that we’re always talking about—it always reverts to the mean.
The fact that the KOSPI has been stretched about 37% above that central line means we’re in for a forceful snap-back very soon.
Ongoing tensions between North Korea and the rest of the world could be that snapping point that forces the KOSPI to surpass the 40-week moving average and continue down until it can’t go any further.
Just like any of the U.S. markets, we can’t just trade the ticker $KOSPI.
But I’ve got an ETF that’ll turn that crash into a 220% profit for us.
If all hell breaks loose, and we see that North Korea is looking to take these tensions one step further, we’re going to turn our focus to the Direxion Daily South Korea Bull 3x ETF (KORU).
We’d obviously want to short sell KORU, which is like buying it, but in reverse.
Since KORU is a 3x leveraged ETF, we get 3x the return of the KOSPI. Therefore, if the KOSPI drops the 37% percent back down to its mean from the last few years, we’d get a 110% gain from it.
And if it reacts to that drop the same way its reacted to every other correction (by continuing to sink until its matched its recent highs) then we’d see another 110%, which is where we get our 220% from.
Again, this could be the minimum payout we’d be taking from this news. It’s hard to say how big the payouts could get, as it’s been a long time since we’ve had tensions as harsh as this.
Keep an eye out for that North Korean tension trigger that’ll send the South Korean KOSPI to new lows.
If you see that happen, you now know what to do.
