Archive Category: Wednesday Windfalls Alerts

I’m not recommending any Wednesday Windfalls trades this week. This is a rare occasion. In fact, throughout the 32 weeks of beta testing and the additional 39 weeks since we opened our doors to subscribers … we’ve skipped just two weeks (not including Monday holidays when the markets were closed). The reasons that led me to hold off on recommending any trades those times are the same reasons I’m making the same decision this week: a dearth of valid buy signals and unacceptably high options pricing.

Shares of Cisco Systems (Nasdaq: CSCO) made a solid move higher yesterday, pushing the $43.50-strike call options we purchased into profit territory. However, shares have pulled back a bit today, bringing our open profits down, from more than 200% to the mid-100% range. That one trade should allow us to either net a small overall profit this week, or allow us to make exits at roughly breakeven. We’ve seen this type of thing many times since I first started running this strategy live, in January 2021. It’s the “all it takes is one” factor.

Most major stock markets closed higher on Friday and are up again today. And while we aim to buy into stocks and ETFs that are down on Mondays, it doesn’t hurt to see the broader market catch a bid after a tough four-day slog from Monday to Thursday last week. It’s encouraging to see buyers bid up prices on a Friday since most folks are hesitant to get long before the weekend, particularly in a bear market. And the fact that the upswing is persisting today is also a positive sign. Nonetheless, my system and I have still identified three individual stocks that have edged lower today after being up on Friday. That should give us the best of both worlds: dips to buy amidst a rising broader market.

The S&P 500 took a dive yesterday and is roughly flat today, though it’s made some wide intraday swings. Nonetheless, my system and I found at least one good play in this sketchy market: Himax Technologies (HIMX)! Shares of HIMX are up nearly 10% since our Monday afternoon entry, and the calls we bought are going for more than double what we paid. We’ll have to take a moderate loss on our Kohl’s Corp. (KSS) calls. And we’ll likely get out of our Energy Transfer LP (ET) position with either a small profit or for roughly breakeven. All told, I expect our nice gain in the HIMX calls will afford us an overall double-digit net profit this week.

The S&P 500 edged higher on Friday, putting in a five-day win streak. Today, the major U.S. stock indexes are down between 1% and 2%. As you know, weakness on Monday isn’t unusual. It is precisely the weekly seasonality pattern I discovered while researching the best (and worst) days of the week to hold stocks. Very often, weakness on Monday is followed by strength on Tuesday and Wednesday, the two best day sessions for stocks in a typical Monday-to-Friday trading week. This is all to say: The market is setting up for the pattern we look to exploit!