Archive Category: Max Profit Alert (Alerts)

Alongside the continued geopolitical turmoil surrounding Russia’s invasion of Ukraine, the price of gold remains strong and is holding its bullish breakout of a week ago. It’s time to make a play! Shares of the VanEck Vectors Gold Miners ETF (NYSE: GDX) made a bullish breakout above $35 last week. That $35 level was where the diversified gold miners exchange-traded fund ran out of steam on its last rally, in November 2021.

Last week, we took two positions off our books — our calls on the Energy Select Sector SPDR Fund (NYSE: XLE) and our puts on the iShares Russell 2000 ETF (NYSE: IWM).

Everything about financial markets is cyclical… Stocks cycle between bull and bear markets. “Growth” outperforms “value” for some time … then the opposite is true. The entire methodology we call “sector rotation” — our bread and butter here at Home Run Profits —is built on the cyclicality of markets, and their sector and industry-group components. What’s more, active investors like us experience cyclicality in our performance — in our portfolios’ P&Ls.

In case you missed it, the stock market plunged over the last few sessions. Shares of IWM fell through the $210 lower bound of the consolidation range like a hot knife through butter. The $180-strike put options I recommended buying now trade for double what we paid for them last Tuesday. I recommend locking in a profit today on one-third of your position…

I sent a trade alert earlier this afternoon with instructions to manage the four positions we held coming into the week. I also recommend that we get into a new short position today. I’ll start with the action to take, then I’ll explain why.