Archive Category: Wednesday Windfalls Alerts

Man, we’ve had a rough slog so far with our Monday-to-Wednesday trade! Our ultra-short holding period leaves zero room for negative price action. So while I’m confident that cooler heads will prevail, eventually, over the latest COVID-19 omicron concerns … this week’s set of trades can’t wait for “eventually.” I’ll talk more about our ultra-short holding period in this week’s Trade Wrap video. For now, let’s cut our losses on this week’s trades.

Stocks plunged on Friday. As far as I can tell, a combination of two factors caused the move: 1. A thin post-holiday market. 2. A growing number of news stories about the latest COVID-19 variant. That’s a recipe for an overreaction move. And already, most stocks seem to be perking back up today. It may take a day or two before folks digest the reality of another variant. But I think cooler heads will prevail … and stocks will rally throughout the week.

All three of this week’s plays traced out a similar pattern: They fell on Tuesday, opened lower today and then traded higher throughout the day. Shares of American Airlines (AAL) are trading for what they were on Monday at 2 p.m. Shares of Carnival (CCL) and the iShares China Large-Cap ETF (FXI) are down, 0.6% and 0.7%, respectively. Those aren’t big drops at all. But, of course, by implementing these trades with at-the-money weekly options just four days prior to their expiration … we operate on the “knife’s edge” between sizable losses and big gains.

This Thanksgiving week, I hope you and yours have a warm and blessed holiday! Markets are still open through Wednesday’s close, so I’ve identified another batch of Wednesday Windfalls trades for you. The first is on a diversified foreign stock market exchange-traded fund (ETF) that has chopped sideways for the past 12 years. That made for a frustrating slog for buy-and-hold investors, but my model has done well on this market in back testing from 2004 to present, producing a 110% gain on the shares while being in position less than 6% of the time.

I had high hopes for our week after seeing shares of Uber Technologies Inc. (UBER) up 4% on yesterday’s close. But that bullish pop reversed course today, leaving the stock up less than 1% from our Monday afternoon entries. Otherwise, both Cleveland-Cliffs Inc. (CLF) and Continental Resources Inc. (CLR) turned out to be duds, as shares fell lower both yesterday and today. The drops in those weren’t too steep, so the losses we’ll take on them won’t be as large as they otherwise could have been.