Archive Category: Max Profit Alert (Alerts)

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.

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.