Archive Category: Wednesday Windfalls Alerts

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I often say in Wednesday’s “Sell” trade alert that I don’t want to call the week’s result too soon. But this week, unfortunately, it’s pretty clear … we’ll be taking a net loss on the week. In fact, all three of the plays we made on Monday have fizzled out. Shares of The Kraft Heinz Co. (Nasdaq: KHC), Pfizer Inc. (NYSE: PFE) and GrowGeneration Corp. (Nasdaq: GRWG) are down 1.2%, 2.5% and 6%, respectively, at last glance. And those moves have put the value of the call options we bought meaningfully lower — all less than 50% of our initial investments.

The broader stock market, using the S&P 500 Index as a proxy, is looking more bullish these days. The last major “low” came in October … Then there was a low in early January, which was higher than the October low. Then, last Wednesday, the market made another short-term low, which was higher than both the October and January lows. That pattern — a series of “higher lows” — is suggestive of a new bullish trend that may be getting underway. Though it’s still a bit too early to break out the champagne, since we’ll also need to see a series of “higher highs” before calling the trend change.

I don’t want to call it for sure too soon, but on my last glance at pricing, it appears we’ll be able to capture a small net profit this week.

As long-time readers know, Wednesday Windfalls is a short-term, “quant” strategy that relies on statistical features of a stock’s recent price action rather than longer-term fundamentals.