The stock market goes up and down (it ain’t a secret). However, the direction in which those prices move is usually predicated on some form of news; Whether company-specific, macroeconomic themed, or out-of-the-blue tweets from the President of the United States.
There are strategies traders can use to capitalize on the sentiment the main-stream media are broadcasting to the world.
An example comes off of the back of President Trump’s tweet regarding the stimulus bill:
Many traders/investors could be scared off as the market plummeted from the news. However, you could use the short-term market weakness to accumulate call options in companies that were in up-trends and were bullish before the news came out. When the price pops higher, we can then say “thank you very much” and take our profits. It was possible in stocks such as Xerox Holdings Corp (NYSE: XRX), Harley-Davidson Inc (NYSE: HOG), and Cloudflare Inc (NYSE: NET) – to name a few…
If you are waiting on the sidelines until after the Presidential election, the stock market could be up 10-20%. Wouldn’t you rather be selling to all the investors chasing those profits at that time?
Watch the full interview to see the market sector we think will continue to soar in the lead up to the election.. so you too can take your profits.
Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.
Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.
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