Market Panic Erupts… I’m Buying The Dip in These 3 Stocks NOW

As the saying goes, when there’s blood in the street, buy real estate. That same principle applies directly to the stock market right now. When stocks drop due to geopolitical events on the other side of the globe — events that will have no material long-term effect on US stocks — you need to take advantage.

Today, it’s time to buy the dip.

I’m buying three new stocks today: Teck Resources (TECK), Kinross Gold (KGC), and Albemarle (ALB).

A Pure Liquidation Event

The S&P 500 has been chopping around for a couple of months. This morning, we were down pretty big from yesterday’s close.

The market opened down almost 2% from yesterday’s close. By mid-morning, we were down a full 2.5%. A partial afternoon rally clawed back some losses, but there was still a lot of red.

Nowhere to hide. That’s what a day like this looks like.

When big, unexpected risk events hit, investors push back. They sell. The big Wall Street shops especially — they’re just lowering their exposure. It is a liquidation event.

• Every single group was down
• Every commodity was down — gold, silver, all of it
• Bonds were down
• Every single international market in the world was down

Everything was down. Nowhere to hide. But this is kind of part of the process. Markets don’t go straight up.

But we need to know what we can expect going forward.

65 Years of Market History

Fear is a powerful emotion. Historical data is a better compass.

Every major military escalation over the last 65 years follows a clear pattern. The biggest part of the drop typically happens on the very first day.

This situation fired up Friday and Saturday. So really Monday would have been the first day, but Wall Street was thinking this thing was going to get wrapped up — not much escalation. Yesterday proved that was not true. The markets shot down big today.

But history provides a reliable roadmap for exactly this scenario.

Those numbers are pretty skewed due to a couple of events. Pearl Harbor was way, way bigger than what we’re seeing today. 9/11 was much, much bigger than today. I don’t think we’re anywhere near that magnitude.

But this gives you an idea of what we can expect. Even at today’s peak drop of 2.5%, we are operating around the normal parameters of a geopolitical shock.

Headline Fear vs. Economic Reality

Think about whether these events are going to have any material impact on the stocks and the companies you are buying.

Will this conflict impact oil? Absolutely. 20% of global supply goes through the Strait of Hormuz, and Iran is shutting that thing down. That’s going to drive oil prices up, at least in the short term.

But ask yourself the next logical question.

Is it going to have any impact on Amazon? On Google? On Nvidia? No. Iran is not an economic powerhouse.

These dips are opportunities to buy at a discount.

A lot of what I do is buying breakout trades — stocks that are consolidating, coiling up, getting ready for that move higher. But you have to buy both strength and weakness. You need a plan to get in when it’s breaking out and pushing higher, and also when it’s coming down and trading at a discount.

Staying Focused on Leading Sectors

I’m using today to stay focused on the same leading areas, the same groups and sectors that have been driving this market higher: energy, metals — primarily gold miners — copper, and rare earths.

Rare earth metals have been one of the top-performing groups across one, two, three, six, nine, and twelve-month periods. For the entire year, they’ve been leading.

Any dip in these stocks is a gift, and you need to accept it.

Trade #1: Teck Resources (TECK)

The top copper play, pulled back to the 50-day moving average

I am extremely bullish on copper. There is a massive global shortage, we’re seeing huge strength, and a nice consolidation has formed. I’m looking for copper to go higher.

Teck Resources is one of the top copper mining stocks. And a breakout trading rule I learned from William O’Neil back in the 90s applies perfectly here: always buy the first touch of the 50-day moving average.

After a scoring run from $45 to $65, TECK spent two weeks consolidating. On the 25th, it started to actually push higher — and then the geopolitical situation sucked it right back down.

TECK sitting at the 50-day moving average is a gift. I bought 100 shares at the market with a stop loss at $52.20. That’s roughly 6-7% risk. If this works, it’s going to be a nice little return.

Trade #2: Kinross Gold (KGC)

My favorite gold mining stock — 15% off sale

Kinross Gold is my favorite gold mining stock. I first bought it back in 2024 on the initial breakout in gold. Since then, it has put in a very reliable pattern: run, consolidate, run, consolidate, run, consolidate. It was getting ready to break out higher — and then everything sold off.

I bought 200 shares at market price with a stop at $32 a share. About 5% risk. It really should not get pushed back down below that level.

Trade #3: Albemarle (ALB)

A rare earth stock that already doubled from my last recommendation

Albemarle is one of the biggest lithium miners in the country. If the ticker sounds familiar, that’s because I recommended it back in September when it was trading at $81 a share. It more than doubled over the last four or five months.

Right now at $166, this is a great spot to either add to an existing position or initiate a new trade.

I bought 50 shares at market — about eight grand total. Stop loss just beneath the recent swing low at about $155. Total risk is about 7%.

The Playbook

Three trades. The top name in each of the top areas, all pulling back to the 50-day moving average. That’s a fantastic place to either add on or buy into a stock on a dip.

I typically do two trades, but I spread it out today across three positions. I’m choosing to use this weakness in the market as the opportunity I believe it is.