If there is one hard lesson many investors have to learn, it is that cheap stocks can get even cheaper.
That has been the case with the fallen blue-chip angel General Electric Co. (NYSE: GE).
But by using the right options trading strategies, you can profit no matter which direction the stock turns.
"Don't kick a person when they're down." That's one of the cardinal rules of sporting behavior – one that'll serve you well pretty much anywhere on or off the field… pretty much.
But let's face it: Sportsmanship ends where the market begins. Across that line, massive fortunes can be made "kicking" a company when it's down…
Take a certain shadowy hedge fund I'm following. These investors have decided to move in for the kill on a fallen American legend: General Electric.
They've fallen in behind Bernie Madoff whistleblower Harry Markopolos who's made very public, very shocking allegations of fraud and manipulation in GE's Boston C-suite.
Markopolos – the forensic accountant who, as I said, called shenanigans on Bernie Madoff's $64 billionPonzi scheme – has potent "do-gooder" credibility.
In fact, these allegations probably would've been front-page news had they been brought in GE's prime, or had markets not been sinking on the day. Be that as it may, the accusations battered GE's shares and made massive waves just the same.
But there's a big, big problem with Markopolos' accusations. And I have a big problem with the anonymous backers on whose behalf he's making these allegations.
The Dow Jones today will try to recoup from its ugliest week of the year—selloffs were pushed by an inverted yield curve, a signal which has always preceded recession.
As investors look to step in and buy major U.S. companies on the cheap, the question remains, of course, whether the worst of the downturn is over.
An underwhelming earnings season is winding down while stocks struggle. The sell-siders are, bluntly, panicking.
I wouldn't be surprised in the least to find many of you have heard from your advisors over the past few days – advisors with a vested interest in keeping you long the markets (and ensnared in their asset-based fee models).
I'd also bet you're being told "not to worry." I bet you're hearing a lot about companies "flush with cash" and "beating their earnings expectations."
I bet you're being told, despite the obvious signs all around us, that this market is "uniquely solid" and that "the numbers confirm it."
Have I pretty much nailed it word for word?
That's because I'm a hedge fund guy. I know the legal tricks and accounting stunts that keep CEOs and, well, hedge fund guys "well-remunerated."
Expect the Dow Jones today to rise ahead of 2 p.m. as investors anticipate the first interest rate cut by the Federal Reserve in more than a decade. Markets have 100% priced in a rate cut by the Fed.
The Dow Jones today will grow after a stronger-than-expected earnings report from McDonald's.
Earnings season is one of the biggest catalysts for options traders.
And this blue-chip stock's chart shows it's about to plummet 11% lower.
Here's how to play it to bag a quick 161% profit...
Today, our Chief Investment Strategist is bringing you the "big four" profit-robbing pitfalls that millions of investors needlessly fall into, losing billions of hard-earned money.
Expect a dip in the Dow Jones today since the Chinese government announced its slowest industrial output in 17 years.
This followed reports that a meeting between President Donald Trump and Chinese President Xi Jinping will be pushed back.
The Dow Jones today fell after news that Chinese phone maker Huawei would sue the U.S. government for banning its products.
This comes as a setback to investors who have waited on the edges of their seats for good news to come out of U.S.-China trade talks.
