Archive Category: Max Profit Alert (Alerts)

Last week, I went through our six open positions and shared my expectations…

In my update on Tuesday, I ran a “what-if” scenario that showed the potential for our $190-strike put options on the iShares Russell 2000 ETF (NYSE: IWM) to skyrocket to as high as +700% if shares of IWM dropped to $145. Now, I don’t see that scenario as likely. In fact, what’s transpired since Wednesday afternoon’s Federal Reserve minutes has me believing that a short-term bounce in stock prices is now in the works.

Stocks did not like the Federal Reserve’s half-point rate hike last Wednesday. After surging higher for a couple of hours Wednesday afternoon, major indexes erased all of Wednesday’s gains and more on Thursday. Stocks continued to slide on Friday … and have opened lower again this morning. I’m long-term bullish. But it’s clear that in the short term, investors are growing more nervous to hold stocks, and the dominant market trends have turned from bullish to bearish. We had the foresight to add a hedge position just over a month ago: put options on the iShares Russell 2000 ETF (NYSE: IWM).

Stocks are struggling… The S&P 500 hasn’t made a new high in 78 trading days. It’s been even longer for the tech-heavy Nasdaq 100 and the small-cap Russell 2000 — 107 and 116 days, respectively. Both indexes are now in “bear market” territory. Of course, we maintain a bullish leaning here at Home Run Profits. Five of our six open positions are in diversified “alternative” plays — on gold miners, silver, energy transportation, Canadian stocks and real estate investment trusts (REITs).

I’m thrilled that our system has triggered a new opportunity today! In an environment driven by inflation and rising interest rates, so-called “real” assets — i.e., commodities and real estate — seize the day. We’re seeing this play out across the commodities sector, where my system shows “buy-qualified” uptrends in gold, silver, copper, base metals, agricultural products and, of course, oil and natural gas prices. Real estate investments win in this environment, too. So it’s no surprise to me that the Real Estate Select Sector SPDR Fund (NYSE: XLRE) holds the No. 1 spot on our Leaders & Laggards Board this week, as you can see.