Sunday, August 8, 2021

How to Profit From the Market’s Waiting Room

Letter from the publisher - August 8, 2021
How to Profit From the Market's Waiting Room
Author: Corey Snyder, Publisher

Out of the hundreds of different strategies implemented by investors and institutions across the globe, there's one that is far too simple to ignore…

And for the retail investor, it's the one strategy that I'd recommend anyone use because it fits every time horizon.

Your endgame could be 20 minutes, or 20 years…

It doesn't matter.

What does matter is that it's easy. And if you can do a miniscule amount of homework, you'll find that your YTD profit on a single ticker will vastly exceed your expectations...

Because the only thing that concerns any of us is not the fact that we invested in a great company or that we timed a trade perfectly through expert technical analysis - none of that…

It's that the P&L shows more "P" than "L".

And sometimes you can even find that you profited from a "losing" trade…

Let me explain…

Rigor Mortis

One of the most incredible things about trading is the countless number of ways to extract money from a single position…
This is what always attracted me to investing and it's the very reason myself and just about every trader I know got involved.

If you're long, you can sell covered calls, short puts, etc.

And if you're short, you can do the opposite.

These are only limited examples of the possibilities. But the strategies don't have to be options…

You see, in a perfect world, the moment when you take profits on a trade occurs almost immediately after putting on a position…

…But we know this is rarely the case.

What's more is that we can find ourselves in a "dead" stock - which we know will climb - but we don't want the waiting game to erode the balance of our account.

Ah, the time value of money…

It's something that familiarity and growing complacency lead you to…

And then you forget about the overall goal… profits.

"So, what do you do?"

Buy more.

Maybe don't double your current position size, but something "swingable" that doesn't pull down your cash position too much.

Now, the devil is in the details here, so I'll elaborate…

Let's say your position in XYZ has been asleep at the wheel for the last month…

Well, you've been holding it for two and you're down a little, but there's a defined variance in its price movement.

So, you take a closer look at how it's been trading…

For instance, you bought XYZ at $20.00 and your goal is to sell at $30.00…

You're confident that it gets there, but, for now, every couple of days it volleys back and forth between $17.00 and $19.00 with little to no give…

You've been handed a gift.

This is simple math…

In one month of trading like this, XYZ is offering 11.76%, again, every couple of days…

It may not be the windfall you're expecting with your main holding, but the easy gain adds up, especially when it's repeatable.

There's 21 trading days per month, on average.

Cut in half, we'll call it ten.

What would one grand have been in that month while you waited?

$3,039.93.

And you'll have even more once you've reached your target...

Keep moving,
P.S. I'll be showing a more detailed example of this in tomorrow's issue of Before the Bell. You can sign up for free at this link here.
The earnings trade is one of the most profitable ways to trade options... IF you have the right approach.

Watch Options Coach Chris Hood explore exactly how to trade the volatility for your next big win. It's easier than you think.


FINAL PRINTS: The Major Indices Wrap-Up
Index

S&P 500

Dow Jones

NASDAQ

Russell 2000

Weekly +/-

+41.26

+273.04

+163.08

+21.51
% Change

+0.94%

+0.78%

-1.11%

+0.97%
Close

4,395.26

34,935.47

14,672.68

2,226.25
% YTD

+18.12%

+15.04%

+15.11%

+13.82%

MARKET WHISPERS: The Weekend Scoop

  • Bitcoin's Path of Most Resistance - Over the weekend, Bitcoin continued on with its recovery, printing over $45,000 for the first time since May of this year before falling closer to $42,000. This boosted the rest of the cryptocurrency world including major digital assets like Ethereum and even the cheekier-named cryptos like Shiba Inu Coin, which gained as high as 40%. For what reason? No one really knows.

  • WhatsApp's "Minor" Issue - Apple's (AAPL) latest privacy and security measures were met with resistance from WhatsApp on Friday when WhatsApp's Will Cathcart alleged that it would become a "surveillance system." The planned iOS update from is said to detect images of child abuse and pornography, but Cathcart warned that the software could instead be used to look at other forms of private content on Apple products owned by consumers. Never thought we'd hear privacy concerns from WhatsApp. Facebook owns it.

  • Gold Places Last in Market Olympics - The yellow metal has been on a steady decline as of late and the recent employment data isn't helping. On Friday, employment figures surprised experts with stronger numbers than expected, causing investors to speculate as to whether or not the Fed would continue its current level of support. Gold was down close to 6% following the news. Go silver! Well, that's down too.
Missing the daily trade insights from Before the Bell? No worries.

Corey is still providing these ideas through his daily newsletter where he provides in-depth technical analysis into some of the biggest opportunities in the market. And it costs you nothing.

Click Here and Sign Up to Before the Bell for FREE
HIT OR MISS: Who's on Deck for Earnings

  • Monday, August 9th - Berkshire Hathaway A (BRK.A), BioNTech (BNTX), Air Products (APD), America Movil ADR (AMX), Nutrien (NTR), Trade Desk (TTD), Barrick Gold (GOLD), Nutrien (NTR), Chegg (CHGG), AMC Entertainment (AMC), Tyson Foods (TSN), DISH Network (DISH), STERIS (STE), Digital Turbine (APPS), Shockwave Medical (SWAV), Planet Fitness (PLNT)

  • Tuesday, August 10th - Softbank Group Corp. (SFTBF), Coinbase Global (COIN), Sysco (SYY), Transdigm (TDG), Unity Software (U), Hydro One Limited (H), WSP Global Inc (WSP), Bentley (BSY), Nuvei (NVEI), InterContinental ADR (IHG), Darling Ingredients (DAR), Upstart (UPST), Doximity (DOCS), Aramark Holdings (ARMK), Pan American Silver (PAAS)

  • Wednesday, August 11th - Nio A ADR (NIO), Coupang LLC (CPNG), NetEase (NTES), eBay (EBAY), Franco-Nevada (FNV), Ke Hldg (BEKE), Applovin (APP), Rakuten ADR (RKUNY), Royalty Pharma (RPRX), Metro Inc. (MRU), Wix.Com Ltd (WIX), Opendoor Tech (OPEN)

  • Thursday, August 12th - Walt Disney (DIS), Airbnb (ABNB) , Brookfield Asset Management (BAM), Zurich Insurance Group (ZFSVF), DoorDash (DASH), Baidu (BIDU), Palantir (PLTR), Xpeng (XPEV), Broadridge (BR), Wheaton Precious Metals (WPM), PagSeguro Digital (PAGS), SoFi Technologies (SOFI), Algonquin Power (AQN), Goodrx (GDRX)

  • Friday, August 13th - Diversey Holdings (DSEY), Cresco Labs (CL), 23Andme Holding Co (ME), Lion Electric (LEV), Home Capital Group (HCG), Madison Square Garden Entertainment (MSGE), Filo Mining (FIL), Azure Power Global (AZRE), Northwest Biotherapeutics (NWBO), Aya Gold & Silver (AYA), Mind Medicine (MNMD), GreenTree Hospitality (GHG), CareMax (CMAX), DXP Enterprises (DXPE), Vasta Platform (VSTA), XBiotech Inc (XBIT), Midas Gold Corp. (PPTA), Goodness Growth (GDNS), Seelos Therapeutics (SEEL), Auxly Cannabis (XLY), Future Fintech (FTFT), Alkaline Water (WTER)
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