Profit in a declining market

It used to be that an investor could buy blue chip stocks & simply hold them for life, re-investing the dividends, adding to their wealth. Unfortunately, that Buy & Hold strategy does not work in volatile times like we have experienced over the past 9 years.

To be a successful investor today, you need to have hedging strategies to handle those volatile times. This is exactly what our Trend Technical Trader (TTT) service provides. TTT is a hedging service that allows investors to profit in both up & down markets.

Following are recent ‘subscriber only’ posts positioning subscribers to make significant gains, while the markets declined.

Dec. 28 2017

2018 will be The Year of the Margin Call

With our holdings and open orders we’re very well positioned to capitalize on the inevitable market plunge to come.

January 12 2018

VXX has shown remarkable relative strength this week, and should prove to be a stellar opportunity.

To hedge longs or to short the general market, we suggest an out-sized position in VXX if that suits your risk tolerance.

*** VXX was at $25.84  Less than a month later it hit $56.50, a gain of 118%

January 17 2018

Each tick higher in equities is like money in the bank for those prepared to short what should prove to be an epic post-mania plunge.

Stock markets overall look at or very close to a lasting top.

Keep in mind the old adage; “The quicker the ascent, more rapid the decline.”

January 24 2018

Although the DJIA closed higher today, the action was very weak and relative strength measures continue to decline and will soon go negative from the highest levels in history.

A material drop, at least, is imminent.

We’re lowering the buy stop on TZA to $11.00

Especially weak has been the Canadian market, failing to make new highs lately despite gold, oil and many other commodities skyrocketing which would normally push Canadian stocks higher.

We’ll effectively short the Toronto Stock Exchange’s top-60 stocks via HXD (trading in Canada on the Toronto Stock Exchange).

*** TZA was at $10.80  Less than two weeks later it hit $14.72, a gain of 36%

*** HXD was at $5.71  Less than two weeks later it hit $6.89, a gain of 20%

January 26 2018

Equities mania continued Friday as markets have gone parabolic – virtually straight up – on a long-term chart, which is typically ending action for bull markets. 

Nearly all relevant and fundamental measures are at historic extremes, or at levels commensurate with the great market tops of 1929, 2000 or 2007.

January 29 2018

We can’t stress this enough: when a market drop occurs in earnest it’s likely to erase weeks or months of gains in just a few days.

Keep that in mind with respect to risk tolerance.

February 02 2018

Friday’s action was a wonderful way to end the week, however it’s just a small blip on the radar in a long-term perspective.

Despite a 665-point drop, its largest weekly point drop in 9 years, the DJIA is only back to where it was January 11.

Major markets need to drop much, much lower to be “oversold” on even a relatively short-term basis.

February 08 2018

We suggest if markets are down tomorrow to consider closing some of your levered short positions with the plan to perhaps re-enter at better prices, our expectation being that a drop tomorrow would lead to a significant bounce.

February 09 2018

The DJIA was down another 493 points before bouncing as much as 1022 points and finally closing +330 points.

Headline:  “Stocks suffer most volatile week in history!”

The predicted bounce had begun!

During the bounce, we repeated daily: “Stocks could bounce higher, however keep in mind that so far all of the trading action since the low of 2018 is exactly consistent with a bounce from an initial drop that should lead to much lower levels in the weeks and months to come.”

On the evening of February 25th we wrote: “If you do not yet have market short positions and seek an ideal entry, now’s the time.”

The DJIA was then at 25708.

The next day, Tuesday the 26th, it topped at 25800 then plunged 774 points over the next day and a half.

What happens next?  Subscribe to find out!