Western Digital Cp

Trading Strategies

Why Bears Will Enjoy "Best in Breed" Profits This Month

The "September slide" this past week has been excellent for my paid-up subscribers – even some positions that had been sluggish moved higher – because we were well prepared for stocks to gap lower.

We closed out two more winners in Western Digital Corp. puts, and on the "other side" of the market, DSW Inc. calls for a nice 174% and 78% in gains.

Those results certainly show how our proven "Best in Breed" (BIB) stock-picking methodology works hand in hand with portfolio balance. A mix of calls, puts, bullishness, and bearishness has helped us capitalize on the market's recent swings.

Right now, BIB is showing retailers as an area of strength for the next couple of months, which is why I've been so bullish on them here in Money Morning recently – just look at our DSW position. 

Meanwhile, BIB bull's-eyed the technology sector as a laggard, and sure enough, it's no longer leading the market higher. Puts in WDC yielded a huge profit. And our other bearish plays in the sector are bouncing back in our favor.

Now let's take a look at what the market's showing us for the next four weeks or so...


How to Make Less, More (Profitable)

I am about to tell you something that flies in the face of conventional wisdom. If you believe me, you could make a pile of money in a hurry. If not, I will do my best to change your mind.

Let me explain.

Wall Street and legions of academics, economists, and accountants want you to believe that more information equals better profits.

Not so.

In fact, there's a good argument to be made that less is more when it comes to your money, especially when it comes to quarterly reporting.

Quarterly numbers rob our economy of innovation and opportunity. Worse, they rob YOU of the profits that go with both.

How many times have you seen numbers released that should have made stocks pop, only to watch them head lower? How many times have you seen otherwise terrible information turn into huge gains? And how many times has that worked against you, because you didn't know how to "see through" the shenanigans?

Now – and this is very important – ask yourself how different your profits would be if you had the knowledge to see through this, to correctly anticipate which way company stocks would move, and why.

You could enjoy bigger, faster, and more consistent profit potential, year in, year out, in all sorts of market conditions.

I'll share one of my favorite metrics in a moment – one that will help you see through the quarterly noise in pursuit of life-changing wealth and turn less into more (profitably).

First, though... let's talk about how to...