Unprecedented Bright Spot in Market Downturn

In the past 25 years there has been 50 days when the market moved up or down four percent. That seems like an average trading day now. It should. Half of those 50 moves occurred in the past two months. That's right, 25 years of volatility was crammed into about two months of trading. So, yes, it's going to be nice to have a long break (don't worry about Friday, it's a half day and volume is always light).

What I'm most thankful for is the government taking a day off. So, for one day at least, no bailouts. I think they've been one of the biggest causes of the recent volatility.

Government intervention has created nothing but greater uncertainty in the markets.

Will GM and Ford get bailed out? Which banks are too big to fail? When will the credit markets return to normal? How deeply will the $9 trillion loss (stocks and real estate values) consumers have taken effect spending this holiday season?

There are a lot of unanswered questions out there. And there will be no meaningful recovery until a lot them start to get answered. There is a bright side to all of this uncertainty, it gives us time. We've got a window here to weed through all the poorly run companies and cherry pick the best opportunities.

That's why I'm excited to delve into what very well could be the next bubble. The way this market is structured (and you've got a good guide to help out), you can make an absolute killing.

It's true. Yeseven in the worst bear market in 70 years. Here's how.

Winning in the "Lottery Ticket" Market

The biotech industry is one of the most exciting places to invest (note: exciting investments are usually the worst possible ones to make). There are new drugs discovered, the latest results from a clinical trial can send stocks soaring or plummeting overnight, there's a lot that can happengood and bad. Best of all, it didn't really matter too much which way the market headed.

That's why I've always considered investing in biotech stocks to be like buying a lottery ticket. The payoff is big, but the odds are stacked against you. That all changed a couple years ago when I learned one way to consistently do well in the biotech lottery.