Everyone’s scared of the same thing right now.
And no, it’s not Obsession or Backrooms… it’s another one-word fearmonger: Chaos.
I’m not afraid of it, and by the end of this you will see why.
The market is going through a violent rotation as we start the second half of the year.
Money is pouring out of the semiconductors that led all year and scrambling into everything else. The tape is whipping around, red one hour, green the next, and most investors are white-knuckling the whiplash.
Here’s what they’re missing. Chaos is not the thing to fear. It’s the thing to feed on.
I run a strategy called the overnight flip, and it doesn’t work in spite of volatility. It works because of it.
When money stampedes out of one group and into another, it doesn’t move in a straight line. It overshoots. Good stocks get sold too hard, too fast, by people who are reacting instead of thinking.
That panic selling is the whole opportunity. When a solid company gets dumped to a fresh low on fear that has nothing to do with its business, the snapback is imminent.
I buy that overreaction late in the day and sell the bounce the next morning.
In and out overnight.
Last week handed me a textbook example, and its name is T-Mobile (TMUS).
For three straight sessions, sellers hammered TMUS. It got caught in the rotation, then piled on by a scary headline that SpaceX (SPCX) might launch a Starlink phone service to compete with it.
On Tuesday the stock cratered to $165.66, a fresh 52-week low.
Most traders saw that and ran. I saw a great company on sale.
Nothing was broken at T-Mobile. And I was expecting a snapback.
The business didn’t shrink because Elon Musk floated an idea. The stock was just caught in a panic, and panic is temporary.
So, I stepped in near the low with a tight overnight options play.
The next morning, the bounce showed up right on schedule. TMUS closed up 3.23%, and we took our profit and stepped aside before lunch.
That is the entire game. We were not guessing where T-Mobile would be in a year, and we didn’t care about the earnings report weeks away.
We read a panic, bought the overreaction, and sold it back to the market when it came to its senses.
But here’s why this matters more now than it has all year. The rotation isn’t over. The volatility that scares everyone else is the exact fuel this strategy runs on, and setups like TMUS are showing up faster than they have in months.
While the crowd hides from the chaos, we are going to keep using it.