The Most “Divergence Trades” Since 2008
Over the last several weeks, Inside TradeSmith has continued tracking the surge of market volatility fueled by tariffs, geopolitical concerns, and widening global imbalances – conditions we’ve dubbed the “Age of Chaos.”
We’ve shared strategies for playing defense, using TradeSmith tools to help safeguard portfolios during these turbulent times. But defense is only half the story.
That’s why I sat down with Jonathan Rose — founder of Masters in Trading — to explore how he’s turning this chaos into opportunity.
Jonathan and I are both market veterans. In his case, he started out on the Chicago trading floors and developed a divergence trading strategy that he’s used ever since.
Jonathan’s divergence trades thrive in volatility, and right now, he says the number of opportunities he’s seeing rivals anything since the 2008 financial crisis.
If you’re not familiar with divergence trades, then this issue of Inside TradeSmith is your crash course from a trader who’s mastered them over 25+ years. I connected with Jonathan to break down how he spots them — from mismatches between gold and silver, to international spreads like Mexico versus Brazil — and how traders can use them to pursue upside potential without taking on outsized risk.
Be sure to watch the full interview below:
Click here to Read a Full Transcript of this Interview
Jonathan’s deep dive into divergence trading during our interview revealed just how powerful these market dislocations can be — especially in today’s environment of nonstop volatility. But as insightful as the conversation was, it only scratched the surface.
Back in April, while mainstream headlines were screaming about tariffs and “Liberation Day” chaos, Jonathan spotted something different: a rare divergence between major global markets. And in just 19 days, that strategy handed him and his subscribers a 100% gain.
Now, Jonathan says an even bigger divergence is forming — and he’s breaking it all down in a brand-new presentation.
In it, he reveals how this strategy has helped him deliver gains as high as 122%, 322%, even 967% — not over years, but sometimes in just weeks. And more importantly, he has a lot more to say about how everyday investors can learn to identify these same patterns without taking reckless risks.
If you want to understand how professional traders really profit during market turmoil — and how to turn this volatility into opportunity — click here to watch Jonathan’s full Divergence Trading presentation.
Good investing,
Mike Burnick
Senior Analyst, TradeSmith