These Divergences Lead to the Most Profitable Trades VIEW IN BROWSER
BY JONATHAN ROSE, FOUNDER, MASTERS IN TRADING Picture a wolf pack on the hunt for prey. It’s one of nature’s most coordinated forces. The wolves travel in formation – not for show, but for survival. Each wolf has a role. Scouts up front, strong males on the flanks, the alpha pair directing pace and direction. Even the stragglers at the rear play a purpose. They watch for threats and keep the pack tight. But sometimes, one wolf diverges from the pack. Maybe it sees or smells something. And it moves ahead of the pack to investigate. But that break in formation doesn’t last long – 99 times out of 100, that wolf drifts back to the pack. That’s exactly how I view the market. I don’t make binary bets on whether a stock will go up or down like most rookie traders do. Instead, I look for relationships between stocks that usually move together – but occasionally break apart. Then I bet on those relationships coming back into line. This reframe – from guessing direction to tracking relationships – has been the foundation of my success since I got my start on the floor of the Chicago Mercantile Exchange. In fact, one of my first big wins came when I spotted something unusual during the Nasdaq’s digital transformation… …a regular divergence between prices quoted on the trading floor and the prices quoted on the new electronic system. That launched my career. And trading divergences like this has helped me make a lot of money as a trader over the years. We’re talking more than $800,000 in 2006… $2.3 million in 2007… and $4 million in 2008 – during the worst meltdown for stocks since the Great Depression. I’m not trying to predict the future…. I’m not staring at candlestick charts or memorizing Fibonacci patterns… And I’m not chasing the latest “hot stock” making headlines. All I need to do is spot when two related assets get pulled apart… and position myself to profit when they come back together. Let me show you what I mean with some real-world examples. | Recommended Link | | | | Apple, Amazon, Meta, and Microsoft have each created incredible innovations, making investors wealthy along the way. Thanks to his system, Louis Navellier spotted each one of these companies before they became mega-cap household names. Now, his proprietary system is lighting up in a whole new way. It’s pointing to a powerful economic force that’s creating major wealth opportunities… while disrupting careers once considered “secure.” This transformation isn’t just affecting a single industry – it’s fundamentally altering the foundation of our economy. Louis’ new message explains how to ensure you’re on the right side of this historic wealth divide. |  |
Spotting These Divergences Is About “Minding the Gap” This first chart is of two e-commerce giants – Amazon.com (AMZN) and Alibaba (BABA). Normally, these two stocks move in line. But sometimes they diverge (red circles). Then those divergences come back in line again (green crosses). 
And here’s another classic pair of stocks that typically trade in line but sometimes diverge – rideshare rivals Uber (UBER) and Lyft (LYFT). 
And here are gunmakers Smith & Wesson (SWBI) and Sturm, Ruger & Company (RGR). 
I told you it doesn’t take a genius to figure out these trades. You just have to see when the price action in two highly correlated assets are breaking apart… and bet on them coming together again. In the cases above, you simply target the stock trading out of whack to the upside with a downside bet. And vice versa – the lagging stock is a target for an upside bet. Finding these setups really is the hardest part. You have to spend a lot of time trading the markets to learn and understand these relationships… knowing how to exploit them to your benefit. That’s what I’ve done, and I’ve set my subscribers up with plenty of these “pairs” to watch for opportunities. But the divergences I just showed you are nothing compared with the one that’s setting up in the market right now. It has the potential to deliver thousands of dollars in profits without taking crazy risks with your money. Just ask one of my followers, Dan B…. The last time this same divergence happened he took a single position and walked away with a game-changing result. As he later wrote me… My account went from $44,325 to over $180,000 – on a single trade. That’s just one story of hundreds I’ve heard from my community. Every day in my exclusive online community, hundreds of apprentice traders get together live and share their progress, support each other, talk about ideas, and chat with me in real time. Over the years, my members have seen tremendous gains through the strategies I learned on the floor of the Chicago Mercantile Exchange. Using these strategies along with smart leverage via the options market, my subscribers have scored gains of 322% in 32 days, 411% in 39 days, 752% in 40 days, 805% in 70 days, and 967% in 52 days. But if you want to see how these trades work – and why a massive new divergence is setting up right now – you can watch my presentation here. I get into a ton more detail about how you can use these trades to speed up your wealth-building journey… and avoid the wealth-destroying mistakes so many rookie traders make. Remember, the creative trader always wins! 
Jonathan Rose
Founder, Masters in Trading P.S. Aside from my new divergence trading presentation, you can also catch me on my daily livestreams at 11 a.m. ET every day the markets open at my Masters in Trading LIVE YouTube channel. On these livestreams, you’ll get… - A professional trader’s morning check-in
- Insights into what sectors are moving the market
- And real-time setups you can follow in your account
The video I recorded on Tuesday is all about divergence trading – check it out here and subscribe for more. | 
