Why Listening to the Bears This Holiday Season Could Cost You

Some Wall Street analysts make a career out of being bearish. These "Chicken Littles" of the investment world are always worried about something. Politics, economics, China trade, an aging bull market, the weather - you name it, they always have something bad to say.

It's a great thing to be mindful of risk when investing. But living in constant fear of downside could keep you from succeeding in the greatest bull market of all time.

In fact, December could be the most profitable month of the year. And there are options trading strategies you can use to take advantage of that.

Last year, around this time, Morgan Stanley (NYSE: MS) top strategist Mike Wilson predicted the S&P 500 would end 2019 at 2,750. It closed Tuesday at 3,141. And now, he's also looking forward to a loss in 2020, a 4.3% slide to an even 3,000.

Looking even farther back, Marc Faber, Editor of the Boom, Gloom & Doom Report, warned investors in June 2017 that the stock market was going to plunge 40%. To be fair, he said it would "lurch" higher first. But the S&P 500 rallied from 2,423 to 2,872 - that's 18.5% - over the next seven months.

That's some lurch.

And after a correction of 8.8%, the market went on to even higher highs in September 2018.

Of course, some options strategies can even be profitable if the markets go down. But the economy shows no signs of slowing anytime soon. And that's even better news for options traders.

Our research is showing something completely different for the second half of December, and you won't be seeing it on TV or in the newspapers. It's even zoomed in on four companies that could benefit the most...

Why the Santa Claus Rally Is Perfect for Options Trades

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Right now, there's not much excuse for hardline bearishness - unless you don't want money.

Here's what's gone right this year:

  • Wage growth was higher than mortgage rates for the first time since 1972.
  • Consumer confidence this month rose to its highest level since May.
  • The November jobs report crushed estimates (by Wall Street geniuses, again).
  • Unemployment is at a generational low.
  • For the first time ever, most working-age new hires (25-54) in the United States are people of color. And women are predominantly driving this trend.

It pays to tune out the bearish growling and take a look at what is really happening. Money Morning's options trading specialist, Tom Gentile, has a great way to do just that.

He calls it his Money Calendar. It's how he cuts through the clutter based on 10 years of studying price patterns in the market.

The first thing Tom learned was that December is historically one of the stronger months of the year in terms of stock market performance.

It could be the holiday spirit. It could be end-of-year positioning by fund managers. But whatever the reason, it is a seasonal tendency in the market that we can exploit with options trading strategies.

But Tom takes it even further. He breaks down bullishness and bearishness by the individual day. And right now, he is zeroing in on Dec. 16. The Money Calendar shows the second half of the month to be especially strong, at least with a small universe of stocks.

That includes such names as Netflix Inc. (NASDAQ: NFLX), Boeing Co. (NYSE: BA), Sherwin-Williams Co. (NYSE: SHW) and UnitedHealth Group Inc. (NYSE: UNH). These are historically strong for up to 30 days starting in mid-December.

So this December, look at the market itself - not pundits - for clues on when and where to invest. And if you want to stretch your money further, it can't hurt if you learn how to trade options...

Learn How to Harness This Powerful Options Trading Secret for Yourself

Live from his private office in Florida, America's No. 1 Pattern Trader is revealing his most lucrative options trading secret yet.

It's the reason he's able to make such fast, profitable moves on companies like Netflix, Apple, Facebook, even Amazon - the reason he's able to see major paydays long before they happen.

We're talking about the potential to see the future of any stock on the market.

And Tom Gentile's going live to show you exactly how to do it.

Believe it or not, it's as easy as a few simple clicks of your mouse...

In no time at all, you could be lining up trade opportunities one-by-one and watching as your account grows bigger and bigger.

Click here to learn more.

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