Goldman Sachs (GS) revealed that they’re expecting one of the most volatile Januarys on record. Why?
Jon Najarian explains front month volatility in the S&P appears to be significantly lower than it is in January, February or March. A steep climb like that, typically suggests a large amount volatility lies ahead. Investors might need a seatbelt on their chairs this winter, he says.
However, in China just the opposite is happening. Front month volatility appears higher than volatility in the outer months. That suggests a big rally could be coming Najarian adds.
A similar scenario is setting up for the banks and financials, he says. As a result, I'm long Morgan Stanley (MS) and Capital One Financial (COF). 15-25 days in the future, financial and bank stocks could be moving significantly higher he concludes
You might try trading the financials but make sure you have an exit plan adds Jeff Macke.