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trading strategies

Trading Strategies

Don't Fall for Stock "Turnaround" Fairy Tales - Buy These Instead

By , Special Situation Strategist, Money Morning - • Print | Email

Ah, that special time of year. The holidays are done, football season may as well be, and the prospect of baseball is a mere specter of a whiff of fresh-cut grass and hot dogs on the other side of all the ice and snow yet to come…

You'll have to forgive me for waxing poetic. On the other hand, I'm not doing it to sell you something… unlike the tidal wave of breathless prose currently inundating inboxes, courtesy of Wall Street and its good buddies in the mainstream financial media.

That's right: Investment clickbait season is here. Everywhere I look, I see "predictions" for 2018.

"Nine stocks to make all your dreams come true!" "One stock to rule them all in 2018!"

"Three stocks to profit from the 2018 zombie apocalypse!" "Six Trump-proof stocks!" "When this stock triples in 2018, thank Trump!"

My inbox is stuffed with these pitches, and they are all pretty much the same: lists of stocks with fantastic stories, peppered with some pithy quotes from an analyst or CEO about why this company is going to make your hopes and dreams a reality.

Some of them are even pretty well-written. But almost universally, they are poorly researched, and fatally short on clear-eyed analysis of a company's prospects and financial condition.

You can safely throw them out, and grab a real winner like the one I researched, which I'll show you instead...

Gold

Buy Gold Now, Before It Goes "Digital" and Packs on More Gains

By , Money Morning - • Print | Email

I couldn't be more excited for gold's potential this year.

Both 2016 and 2017 were positive years for gold, despite the precious metal's price action. In fact, gold gained 6% in 2016 and doubled that with a 12.7% gain in 2017.

Since mid-December, this sector has been on fire, with gold ahead nearly 6% since then. Meanwhile, gold stocks are up 10.9% as a group, and they're quickly outpacing gold's gains.

I think 2018 will turn out to be a breakout year for the precious metals sector.

But what I'd like to tell you more about today is how gold-as-money is gradually creeping into the consciousness of the market... and why it's such a revolutionary development for investors...

Trading Strategies

Three Big, Profit-Driving Trends I'm Watching for 2018

By , Chief Investment Strategist, Money Map Report - • Print | Email

I made my case forcefully in last year's Forecast issue that 2017 would be…

1) a year of extraordinary profits despite overwhelming cynicism associated with one of the most contentious elections in U.S. history;

2) and that there would be far higher prices ahead, especially for three sectors: big technology, defense, and key medical providers.

That turned out to be well-founded advice, and we were spot on yet again…

I urged you to "get on board or get left behind" and suggested you prioritize "Global Challengers" for income and appreciation as a way to maximize profits.

Many of our recommendations took off like a rocket, some of which hit at least 100% and turned into free trades during the past 12 months. The S&P 500, by comparison, turned in only 18.66% over the same time frame.

A good number of our options plays, which I recommend as a more aggressive way to follow along with our recommendations, have done even better.

I see 2018 playing out much the same way: full of tremendous opportunities and life-changing wealth.

I think investors who keep these things in mind stand to make superior returns over the next 12 months and beyond...

Trading Strategies

Don't Be Afraid of Volatility; It's an Extremely Profitable Ace in the Hole

By , Quantitative Specialist, Money Morning - • Print | Email

Traders and investors everywhere are spooked by volatility whenever it rears its head. We hear about it every time stocks take a tumble, even if that doesn't happen so much these days. So the Investopedia definition I'll show you is probably the last thing they're thinking of.

"Volatility: A statistical measure of the dispersion of returns for a given security or market index. Commonly, [emphasis mine] the higher the volatility, the riskier the security."

Now, that doesn't sound so scary, does it?

Volatility is nothing more than a statistical tool that shows how much a stock goes up or down. Yet many see volatility as a bad thing, because they equate it to risk. And risk is bad for us, right?

Well, sometimes risk is bad. But to the smart investor, volatility is a difference maker. Because without it, you might as well just buy a CD. More importantly, you have zero chance of beating the market. And where's the fun in that?

That's right: Without volatility, you don't beat the market.

That's why one of my 10 Trading Commandments is "Volatility is a trader's best friend!"

Now, let me prove it to you...

Trading Strategies

There Are Two Places to Get Great Takeover Targets in 2018

By , Special Situation Strategist, Money Morning - • Print | Email

Earlier this week, the financial press was over the moon about a Citigroup equity research department report. The completely unironic title: "Addressing the Problem of Too Much Cash."

In the report, analysts Jim Suva and Asiya Merchant discuss the possibility that post-tax-reform Apple Inc. brings home its $220 billion cash stockpile that is currently overseas and uses it for a takeover of other media or technology companies.

The two intrepid research analysts tell us, "the firm has too much cash – nearly $250 billion – growing at $50 billion a year. This is a good problem to have. Historically, Apple has avoided repatriating cash to the U.S. to avoid high taxation. As such, tax reform may allow Apple to put this cash to use. With over 90% of its cash sitting overseas, a one-time 10% repatriation tax would give Apple $220 billion for M&A or buybacks."

Oh, boy! Well, that is kind of the obvious answer, but this sounds like great news for shareholders. Right?

Let's hear some more bottled sunshine from Citi... before I blast a few ugly, jagged holes in its analysis and show you where the deals really are...

trading strategies

Why I'm Really Excited About the Next Two Weeks

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

My paid-up Stealth Profits Trader readers had the chance to play 59 triple-digit winning recommendations in 2017.

I'm expecting 2018 to be even bigger, if you can believe it, starting right now.

When the bell rang yesterday morning on the first trading day of the new year, trading began under the direct influence of the most sweeping tax reform to hit corporations and individuals since 1986.

It'd be tough to overstate the impact this is going to have on the markets – and your bottom line if you play it right.

I expect the explosion in stock prices that's been unfolding over the past few weeks and months of the legislative push will have been "just a taste" as we get deeper into 2018.

Here's what I'm looking at...

Trading Strategies

Defense Investors Are About to Get Rich "1981-Style"

By , Defense + Tech Specialist, Money Morning • @Robinson_STI - • Print | Email

The Trump White House is taking a page right out of President Reagan's playbook. When Reagan took office in January 1981, he sought to rebuild a military depleted by years of war and tough congressional budgets.

Trump took office last January after campaigning on a defense buildup from a budget of around $580 billion. He said he wanted to beef up the military after prolonged battles in the Middle East and annual defense budget fights on Capitol Hill that limited weapons spending.

That's why Trump called for a fiscal 2018 defense budget that is 10% larger than the year before, making it the biggest increase since the Reagan years.

Make no mistake, this gives us a "target-rich" opportunity for the new year. After all, Trump wants more airplanes, tanks, and troops, as well as technology for missile defense and a wide range of other platforms. 

And today, I'm going to reveal the defense trends I see for 2018 and show you how to play them with a market-crushing investment...

Trading Strategies

Some of These "Dead" Shopping Malls Could Pay You Piles of Cash for Years to Come

By , Special Situation Strategist, Money Morning - • Print | Email

The American shopping mall is dead, right?

I mean, ask anybody: Amazon.com Inc. and Wal-Mart Stores Inc. beat the mall to death, and there is no coming back.

No one goes to the mall, and they never will again, and all the real estate investment trusts (REITs) that own malls and shopping centers are going to zero.

Zilch. Nada. Goose egg. Worthless.

At first, this, the conventional wisdom, makes a lot of sense – to me and every other investor.

After all, no one in my house went anywhere near a mall this holiday season. What shopping we did, we did online.

Why go to the mall and put up with all that traffic and the crowds?

Well, as it happens, while everyone has been declaring the mall dead and listing all the ways they'll never set foot in another one, a very specific kind of mall has been reinventing itself – and successfully, to boot.

In fact, I think it's the most unreasonably profitable investment on the market, in part because no one's looking at it...

Trading Strategies

How to Keep Your Most Important New Year's Resolution... and Set Yourself Up for Lifetime Wealth

By , America's No. 1 Pattern Trader, Money Morning • @powerproftrades - • Print | Email

Most people make New Year's resolutions, including resolutions to acquire and keep more wealth in the year ahead. Unfortunately, 90% of people fail at keeping these resolutions by February.

Try kicking it into overdrive next year with Tom's easy, profit-making steps...