SPY

S&P 500 SPDR

Trading Strategies

Here's the Right Profit Plan for This Wild Market

We've seen the Dow swing from 29,100 to 26,763 since the highs of Sept. 2 – and if that's not "volatility," I don't know what is.

That's probably pretty scary for buy-and-hold investors, but the thing is, as traders, we absolutely need that volatility; if stocks won't budge, most trades just won't make money – definitely not the kind of money that frees you up to spend an hour trading and the rest of the time doing what you want.

So we need markets to swing around a bit, and that means we also need a good plan to stay on the winning side of those big moves.

It turns out "plan your trade and trade your plan" is an old Wall Street saying for a really good reason.

Let's do it – it's easier than you might think… Full Story

Let's do it - it's easier than you might think...

Stocks

How to Hedge This Market with Options Trading

If you think that trading options is not for you, think again.

Set aside all the stories you may have heard about high rollers and market gamblers who bet the farm on whatever the next big thing might be.

The truth is that options can be part of a conservative investment strategy.

That's right – conservative.

You can use options to hedge your portfolio against losses or you can take advantage of a market pullback without having to sell your stocks and incur possible tax consequences.

Here's how...

Trading Strategies

How to Protect Your Hard-Earned Money with Options Right Now

A UBS study not long ago polled 3,750 investors, and 81% are predicting another market crash before the end of the year. The average drop of the predictions? Thirty-five percent.

Now, I'm usually not one to run with a crowd, but in this case… Well, even the most bullish optimists out there in Sunshine Town have to admit, the risks are there, and they're pretty easy to see.

We've got a potentially chaotic, drawn-out presidential election in November, which is right around the time experts agree cooler weather could bring worse COVID-19 outbreaks. We've got tensions with Iran; China and India have a bone to pick with each other, too. And, any given hour of the day or night, a provocative tweet from the White House could upend any and everything, really.

The 10% dip the Nasdaq took last week could be just an appetizer. Any one or a combination of those things could send stocks tumbling just as low, or lower, than we saw in March.

Look, I'm not saying this to spoil your good time. And I'm not saying it's time to head for the hills – not by a long shot.

But it is the perfect time to look at some inexpensive and, in some cases, potentially very profitable ways to fortify our portfolios and any long-term positions we might like to have on.

These moves will work if we have another crash, but they'll also pay off if we get another big gap downward like last week's, which could be even be more likely than a flat-out crash.

Here's what to do… Full Story

Here's what to do...

Trading Strategies

Cash In by Labor Day with These Four Moves

I hope you've had a great summer – as much as possible with everything that's going on.

My family and I have managed to have a lot of fun, particularly in our new Winnebago Boldt-KL. In a pandemic, it's a nice, safe way to travel long distances, like we did on our summer road trip from Florida to New York.

In fact, I love it so much I find I'm doing a lot of everyday driving in it, just running errands.

Since I'm spending so much time in the Winnebago, I thought…

"Hey – might as well do some trading in here while I'm at it."

So, I hooked it up. I'm good to go; now I have everything I need to scan markets and trade stocks in here.

With gold and stocks going through the roof, and the dollar falling through the floor, I've had my hands full; I sent five plays to my readers yesterday and let my microcurrency folks take two 75% and 90% profits off the table.

As fun and productive (and profitable) as it's been driving and hanging out in the "Winnie," it's only around three weeks to Labor Day, and after that, less than four weeks to October and our first-ever virtual Black Diamond conference. (You can learn how to register to attend here; I'll be there for sure.)

There's a lot going on! And the closer we get to the end of summer, the opportunities get faster and bigger. The time to prepare is right now; if you wait until Labor Day week, it'll be too late.

With all that said, let's dive into my summer-end market forecast that looks at all four "corners" of this market and shows you how to play 'em. Here's what you need to know… Full Story

Trading Strategies

This Is How You Keep the Profits You've Made

The S&P 500 has skyrocketed 46% over the past four months, and the Nasdaq hit an all-time closing high of 10,767 on July 20, surging 56% over the same period.

Thanks to mobile investing, more and more people are getting in on the big stock-buying party.

If you're following along with us, I'm sure you're taking down winners, too.

Now, I'm the last guy that who'd want to spoil a good party – especially one where we're raking it in hand over fist.

So, rather than harp on the obvious systemic risks which we all know are out there, I'm going to show you an inexpensive way to protect those bull-market profits and, even better, pocket more when the market makes its inevitable turn.

Because your profits don't have to take a hit just because a bull market has. There's an added benefit to hedging when the markets are close to highs, too: Protection is ridiculously cheap.

The timing's good, and the price is right. Let's jump in… Full Story

The timing's good, and the price is right. Let's jump in...

Trading Strategies

Why Put Options Are the Key to Profits This July

There's a lot to be bullish about, despite the headlines, or whether we're in a "second wave" of the coronavirus or if we're not done with the first wave.

If you have a long-term view of stocks, you almost have to be bullish.

The markets have an upward bias that's tough to deny.

In fact, this year we've seen markets come roaring back from the March "COVID Crash," and the NASDAQ Composite has even made new all-time highs.

There are trillions of dollars in stimulus sloshing around the markets.

Interest rates are as low as they've been since 2009, and likely to stay that way for the foreseeable future.

That said, traders have to deal with the here and now.

And, while our Tom Gentile's not betting against the markets in the long run, this month his proprietary Money Calendar is flashing a lot of bearish signals that indicate a lot of stocks will be heading lower.

Those signals are backed up by the technicals, too.

But no need to worry.

Tom's going to make his case for switching to bearish trading.

When stocks slide, the profits can be bigger and quicker than when they're going up...