Archive Category: Wednesday Windfalls Alerts

Major U.S. stock indexes are up over the last two weeks. The S&P 500 has clawed back a little more than half of the 13% drawdown it suffered from the start of the year through mid-March. Still, a number of global stock markets are off even more … as well as individual stocks that haven’t participated as fervently in the latest rally. China’s stock market is one of them. Even after bouncing more than 20% higher off their March 15 lows, Chinese stocks remain more than 40% off their early-2021 highs.

Our “supercharged” trade on Chinese stocks was solid. Shares of the non-leveraged iShares China Large-Cap ETF (FXI) have gained around 4.2% at last glance… Shares of the 3x-leveraged Direxion Daily FTSE China Bull 3x Fund (YINN) have gained 12.4%. And the $4.50-strike call options we bought on YINN are up close to 100%, giving us a return about 7X greater than the shares. We should also be able to exit our bullish trades on 3D Systems Corp. (DDD) and Ford Motor Co. (F) with smaller profits.

We’re back with three new trades this week! The most interesting of the three is on Chinese stocks. So let me share a quick take on what’s happening in that part of the world… Recently, Chinese stocks have underperformed all other major global stock markets — with the notable exception of Russian stocks — because, well, China has appeared less concerned with stopping Russia’s invasion of Ukraine than the rest of the world is. But even well before Russia made its move, Chinese stocks were lagging global markets.

Our three-pronged “risk-on” trade has worked out well. Shares of the long-stock play on the ProShares Ultra S&P 500 (SSO) are up about 2%… Shares of the short-volatility play on the ProShares Short VIX Short-Term Futures ETF (SVXY) are up 1.5%… And shares of the short-bond play on the ProShares UltraShort 20+ Year Treasury (TBT) have gained 5% at last glance.

I recommend three new trades this week. You’re welcome to hop right into them, though I’d like to offer a bit more of an explanation this week than I typically do… See, this week, I recommend trades on ETFs that I characterize as: A 2x-leveraged “long-stock” fund. A “short-volatility” fund. A “short-bond” fund.