What is next? It’s the question everybody is asking right now. And it’s a tough question to answer. solution is becoming more and more obvious with each passing day. However, Andrew Snyder in Today’s Financial News says the answer could be that we are close to a bottom in equities. But there is likely going to be some more “whipsaw action” over the next few months. 

More from Andrew:

Right now, the equities markets are down about 25% from their peak. The decline is just slightly higher than the discounting we see during an average recessionary market. It means we could be close to a bottom. That is first set of good news.

The only piece of bad news is this recession will hurt worse than normal. We will likely lose another five to ten percent decline. A stock selling for a hundred bucks today, could be selling for $90 or $95 in a week or two. That is not too hard to swallow.

The second set of good news, which is really good news for savvy traders, is we will lose that chuck of value in wild day-to-day fluctuations. In essence, it is more of the same whipsaw action for the next few weeks or even months.

We made it this far

Looking back, we did not lose the 25% in one, long decline. We lost it in small increments: one step forward, two steps back. It is that kind of market that offers the most profit potential. Pay attention to the clues your given and you can make some fantastic investment choices.

For example, if you followed my advice and bought shares of National City Corp (NYSE:NCC) or the January 2.50 Calls (NCCAZ.X) I recommended on Tuesday, you are sitting on some huge profits. Most importantly, you made that money while the market made two steps backwards.

If you followed that play, it is likely you also bought the Boeing February 55 Puts (BANK.X) that I recommended in the same article. Once again, congratulations on the profits. Just as expected, Boeing’s valuation is falling and investors that foresaw the drop are profiting.

Boeing has plenty of room to fall. After all, the entire transportation industry is getting hammered today. So you should continue to hang onto those options.

Source: Market Volatility: Huge Profits for National City (NCC) Investors