Archive Category: Max Profit Alert (Alerts)

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.

Today, I recommend that you act on all four of our open positions. We’ll close out our trades on the Financial Select Sector SPDR Fund (NYSE: XLF) and the Materials Select Sector SPDR Fund (NYSE: XLB). Then we’ll take partial profits on the Energy Select Sector SPDR Fund (NYSE: XLE) and Chevron Corp. (NYSE: CVX). Also, I recommend that we open a brand-new trade today. I’ll send the instructions for that trade in a separate alert.

After locking in gains of 44%, 58% and 346% yesterday, we have another profit-taking opportunity today. I recommended buying $59-strike call options on the Energy Select Sector SPDR Fund (NYSE: XLE) in October. We had to sit through a two-month pullback, but shares of XLE have now rallied and are making new highs. The contract we bought is now selling for about 55% more than we paid for it, so it’s time to lock in some profits on the first third of our position.