Archive Category: Max Profit Alert (Alerts)

Please read this entire trade alert before you: Make the trade; Call me crazy; Or send me hate mail. I’m recommending a long-shot bet against Tesla Inc. (Nasdaq: TSLA), which is perhaps the most polarizing recommendation a newsletter writer could make. I also think it has the potential to pay out as much as 22 times an initial investment of $500 per contract.

Last week, the SPDR Technology Sector ETF (NYSE: XLK) climbed higher for five straight days. It was a sharp move up, at almost 9%. But yesterday, the rally began to lose steam. Shares of XLK made a slight new high during the day but ultimately closed in the red. And today, after attempting to make a new high, shares of XLK flopped and are trading near their lows for the day. At last glance, shares of XLK are down about 1.9%, the second-worst performer of all the sector ETFs I track.

The stock market plunged lower on Thursday and Friday, then opened sharply lower this morning. So … it’s good that we have a “short” on our books! Shares of the iShares MSCI Spain ETF (NYSE: EWP) have fallen about 10% in the week and a half since we bought $25-strike put options. We bought those puts for $1.35. Today, they sell for at least $2.30 … delivering an open gain of 70% or more. I recommend you take partial profits on this play today by selling one-third of your position.

To a trend-follower… If prices have been rising, you want to be “long” (aka “bullish”). If prices have been falling, you want to be “short” (aka “bearish”) or on the sidelines. It sounds so simple — almost too simple. But trend-following is the only strategy I know of that has a documented history of success that extends well over 200 years … and that works on every single asset class that it’s been applied to.

We made a lot of money on our recent bearish “short” trade on the iShares Russell 2000 ETF (NYSE: IWM). I recommended entering that trade several days after I saw this pattern develop in shares of IWM.