History is constantly repeating itself… and that’s no different with the stock market.
That’s all well and good, but what does that mean for your money?
It means you can scoop up a $65,000 from an upcoming event that’s happened multiple times before… most notably in 1987.
Do you recall anything major that happened to your money in that time period?
I’m talking about Black Monday.
There’s a good chance you remember that day very well… if you had any money in retirement plans, the stock market, or any other financial markets, I’ve probably provoked some unwelcome flashbacks.
Sorry about that… but it’s now time to take all that money back.
If you don’t remember Black Monday, let me refresh your memory.
(If, like most people, you lost a lot of money in this single day, you might want to skip down a few paragraphs to get to your $65,000 payout).
Black Monday, October 19th, 1987, will forever be a day remembered in infamy.
The stock market dropped 22% in a single day and it’ll continue to be known as the single worst day in Wall Street history.
We saw more devastation in 2008-2009, but Black Monday will continue to be the worst single day… until history repeats itself and you take your $65,000 payout.
Let me get something clear… I’m NOT talking about short-selling stocks.
I’ve got something else up my sleeve for this one.
I’ve been analyzing the technical stuff (that I won’t go too far into here) that encircled 1987.
As the markets started to slip in Hong Kong—which is where the first sign of the market crash happened—you could’ve made a single move that would’ve handed you $65,000.
This move comes from the Volatility Index ($VIX).
The Volatility Index is frequently referred to as Wall Street’s fear gauge—it measures investor confidence, and when investors start to panic, the VIX shoots up.
Today, we refer to the Volatility Index as the VIX, but back then it was known as VXO.
As the markets started to slip, the VIX jumped from its safe-area of 20 to reach heights of 150… that’s a 650% jump!
If you had $10,000 in a VIX-tracking ETF like VIXY, you would’ve taken a $65,000 payout in no time when Black Monday rolled around, but now an opportunity is approaching to make that money with as little as $1,000!
We’re going to magnify this 650% gain into a 6,500% gain by tactically using options.
Options are super simple to use and we provide more than enough information across our articles and WSI TV Channel that’ll show you how to get set up with options.
As you know, the stock market has been breaking record after record in this recent bull rally.
I won’t bore you with statistics, but the amount of new all-time highs we’ve been seeing are nauseating (yet profitable).
With all this in mind, I’ve come across a technical factor that tells me we’re bearing down on a Black Monday repeat.
When Black Monday rolled around, the S&P 500 ($SPX) was sitting around 10% above its 40-week moving average.
If it’s not obvious, that’s WAY overstretched.
When the market stretches itself that far, it tends to snap back like a rubber band… just like it did on Black Monday.
Right now, the S&P 500 is sitting around 7% above its 40-week moving average, but it’s been inching higher and higher over the past few weeks.
From a technical point of view, if we see the S&P 500 hit that 10% range, we could be in for a historical repeat.
As the market continues to stretch, the Volatility Index will start to tremble more and more.
I’ll be keeping my eye on the global market for any resemblances to the initial Hong Kong slip on October 19th, 1987…
If this happens, you can be sure I’ll be buying options on the VIX to take my $65,000 payout… will you be joining me?
