When markets get nervous, many investors do the same. They went to withdraw money.
But historically, periods of market panic have often created some of the best trading opportunities – if you know where to look.
The latest The market is closed segment, Barchart’s Chief Market Strategist John Rowland, CMT, explained how rising volatility can signal a change in leadership across sectors – and how traders can see opportunities even as broader sentiment turns cautious.
Several recently widely watched indicators have flashed warning signs.
The CBOE Volatility Index ($VIX) has been pushed above 20 for most of the session – a level that usually indicates growing anxiety among investors.
At the same time, the CNN Fear & Greed Index dropped to its worst reading of the year.
When these indicators rise, many investors flock to the sidelines.
But professional marketers often start asking: Where does the money really flow?
If you look at the major market sectors, a few areas have been quietly performing well.
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Energy stocks have risen nearly 21% in the past three months
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Materials are up about 17%
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The consumer base – the old defense sector – gained about 11.5%
These sectors tend to attract capital when investors begin to move away from high-risk assets. But John highlighted another area that deserves attention: Health care.
While the healthcare sector as a whole has recently posted modest gains, certain sub-sectors are showing strong momentum.
Using Barchart industry tools and weighted alpha levels, Rowland identified areas such as:
These groups often attract attention during periods of market uncertainty.
For example, Cardinal Health (CAH) has been a notable position The Big Short investor Michael Burry, while Moderna (MRNA) has shown signs of recovery after its post-pandemic slump.
But the name that caught John’s attention was Johnson & Johnson (JNJ).
Johnson & Johnson has long been considered a safe haven.
