During the penultimate week of August, you could be forgiven for believing that the market would be quiet. However, after the past five sessions, that couldn’t be further from the truth.

Reaching the conclusion of the summer months, fund managers, traders and investors alike typically end their summer sabbatical with a return to the markets. As such, with an increase in capital and trading activity returning to the market, historically, this has caused a stir; not just in stocks but also commodities prices and market sentiment as a whole.

This was proved emphatically after we were hit with copious corporate bombshells: Companies including WPP, Dixons Carphone and Provident Financial all issued profit warnings to the market, setting the proverbial cat amongst the pigeons.

Some of these UK Index heavy-weights have registered share price declines close to 80% within less than five trading sessions. With such declines seen, traders have sought to exploit short-term trading opportunities to buy shares cheaply, resulting in some of the very names mentioned above seeing recoveries from week-low prices of as much as 120%.

Yes, you heard that right! 120% from their lows.

With Brexit-talks with the EU ongoing, Pound Sterling fell to an 8-year low against the Euro and is now trading close to parity. Perhaps this could be a key component for an explanation as to why companies have been issuing profit warnings in such regularity as of late.

It hasn’t just been in August that we’ve seen these all important releases, with further names issuing profit warnings this year including Oil sector constituent Petrofrac, telecoms giant BT and, perhaps most notably, the construction sector outsourcer Carillion.

The final name on that list saw its share price decline almost 80% in one week, yet still managed to secure key infra-structure contracts after such a decline. Do government contracts suggest value in a weak share price? Does this translate to a stronger revenue stream for the company? Could there be further reprieves in share prices akin to what we have witnessed this week from Provident Financial, climbing 120% from its weekly lows?

Some of these names could still offer 45%-130% potential upside should they return to the levels they were trading at prior to the issued profits warnings. Where else within the financial landscape is it feasible to see these types of % movements on capital?

It can be a grave mistake to follow consensus and merely adopt a mindset of inertia. As these last few weeks have shown, opportunities are rife and can always be capitalised upon.

Most importantly, you need to know when these moments arise and have a direct line to a reliable source of information. Whether it be seeking to profit from further declines or capitalising on recoveries in beleaguered share prices, myself and all of the traders here at Accendo Markets are here to assist you in unearthing these trading opportunities. Furthermore, our team of analysts release daily publications in order to help you identify these opportunities. Find out just how effective these can be by signing up here to receive this award winning research.

Good afternoon to all, and on behalf of everyone at Accendo Markets, we wish you all a very pleasant and restful Bank holiday weekend.

Sam Alnakkash, Trader, 25 August