Dear Zacks Member,
In 2015, after 6 years in the green, the S&P 500 whipsawed with volatility and dipped into the red. For 2016, expectations by big bank strategists and economists have been ratcheted down.
Many investors are holding back, waiting to see where the market turns before making any moves.
But for those of us who pursue quick, substantial profits, this is an hour of extreme opportunity.
Right now conditions are prime for catching both small and big market swings:
- High volatility with a big trading range between S&P 1800 and 2200, and
- Potential for positive surprises in the economy and earnings to create bullish runs of 3 weeks to 3 months that catch most investors off-guard.
And yes, even when the market plunges or stays flat overall, you can make significant money if you know where to look. Fortunes were made even during the Great Depression and Great Recession.
Consider what happened last year when the market slipped into the red. This 2015 Bulls & Bears chart shows what "might have been" for your portfolio.
Bulls & Bears in 2015
|S&P 500 Index||-0.73%|
Imagine if you had focused on Consumer Discretionary industries like cars, apparel, hotels, restaurants, leisure, media, and retailing. Or if you concentrated on health care or traded technology. Your returns would likely have been significantly greater.
I am about to brief you on three potentially market-crushing sector trades as 2016 unfolds, and also on three particular industries that I'm tracking with intense interest.
But it's even more important to see what's happening today behind the scenes, while most traders are unsuccessfully chasing the market or letting their savings stagnate and erode from inflation.
Do you wonder why the best professional individual investors continue to make money hand over fist?
Their Simple Secret
These pros know how to "read the minds" of institutional investors, and how to time the market so they get in and out before the big money does.
They know when irrational doubts and fears are distracting investors from seeing the "Hidden Bulls" until it's too late to fully profit from them. And then they pounce.
The good news is that Hidden Bulls are abundant today.
Right now, while the market is swinging up and down, there are plenty of great trades for the picking. But, chances are, you and your friends could use some help in that regard.
Look, most investors are in the same boat. The market sails well into the green and you make money. But maybe you hold your stocks too long and then you lose those gains.
Self doubt runs rampant. It goes something like this:
- The market moves upward. Is the rally for real?
- The market moves downward. Will the pullback turn into a full-blown correction?
- Have I figured it out correctly? Is it too late to take advantage of the upswing or the downswing?
So there you are, selling at the lows. Then - whoa - you find that the market was actually about to bounce. Instead of selling, you could have made substantial profits "buying the fear"!
You could also have preserved more capital on existing positions if you only had reliable ways to time the market. It seems you just can't make real money unless the U.S. market is flying upward.
Sound familiar? If so, I have something to ask you:
Who Says You Have to Buy and Hold?
To use a phrase I coined during the last recession, what if you could "buy and trade"?
Why settle for waiting out the market?
It hurts your portfolio when you get in after the market goes up -- and when you get out after the market goes down.
Why can't you be on the right side of a market swing?
Imagine buying after others have panicked and created the market bottoms. Then riding the upswing, cutting losers early, and staying aboard winners for outsized profits.
Let me put this another way: Why restrict your money-making ambitions to the relatively few periods when the market is most bullish?
The best professionals know that even in the worst of times. As the saying goes, there is always a bull market somewhere. There are always great trades out there waiting for a keen eye and shrewd conviction.
These people can profit when the market goes up . . . when the market goes down . . . and when the market goes sideways.
How They Make Their Money
For starters, they're up to their elbows in research. They're watching the markets in real time.
Even after Wall Street's closing bell, they're monitoring foreign markets.
They're combing through stock charts and analyst reports. Sifting and sorting through hundreds, even thousands of stocks.
They're searching and waiting. Then buying and selling when the numbers and charts say the odds are in their favor.
This describes the world of the pros at the big trading firms, investment banks, and hedge funds. I call it "total immersion, instant access."
Keeping Pace with the Pros
Can you immerse yourself in rich information networks, with your fingers hovering over the buy and sell buttons? Can you catch the emotional swings to pinpoint bottoms and tops?
Are you willing to devote several hours a day to your investment portfolio?
My guess is that you can't and won't. Few non-professionals can spare that much time. Fewer still have training and instincts refined through years of trial and error.
But that's what it usually takes to invest like the pros.
Since most investors can't compete with Fidelity traders, or Jim Simons at Renaissance Capital, or experts at a hundred other momentum hit-and-run hedge funds, let me suggest another alternative.
How to Get Similar Outsized Returns
I'm going to show you how to consistently beat the market, buying low and selling high, going short as well as long, and making well-timed options moves.
What's more, you can do all this without the training and toil, and without subjecting yourself to the frenzy of day-trading.
That's Where Our Brand-New Zacks Tactical Trader Comes In
We built this portfolio service to detect and exploit short-term trading opportunities found in market swings. It's designed to do one thing particularly well: Make money quickly.
And it will fire every weapon in the Zacks arsenal to do that - stocks, ETFs, options, currency, short trades, and more.
As Editor of Tactical Trader, I will personally provide you with carefully timed moves and explanations, private market commentary for today and forecasts for tomorrow.
Here's What Prepared Me for This Mission
Let me tell you something about my background. As an institutional currency trader for nearly a decade, I traded $100 million dollars per day in the hyper-kinetic world of cash-futures arbitrage.
I was a market-maker in the $4-trillion-dollar-a-day interbank currency - the biggest in the world. And I provided liquidity to the biggest banks and hedge funds in the world.
Feeling like a jungle guerilla-fighter in a war of titans, I learned how the big guys shift money and execute strategies that catch the big moves every week.
During my tours of duty on the trading desks of all three of the major "theaters of operation" - Asia, Europe, and North America - I traded over 1 million futures contracts and nearly $200 billion in currency.
Tuning into all the major economies of the world 24/7, I developed a natural sense for what moves money around the globe.
I took this knowledge into the world of equities in 2008, working for one of the largest option market makers during the subprime financial crisis. I had a ringside seat for the implosions of Bear Stearns, Lehman Brothers, and countless other companies with exposure to excess leverage. This experience shaped my own approaches to risk and portfolio management in stocks, ETFs, options, and currencies.
The Money Trail
For years, I've followed the money moves of institutional portfolio managers and studied their behavior.
I know how they think, what their job descriptions dictate they must do.
They aren't the ones selling at the bottom before the market turns. And when the market sells off to new lows and then reverses as it did in August, 2015, you know they're behind it.
But it wasn't until April, 2011 that "the lights really went on" for me.
That's when I joined Zacks, and began to use their time-tested fundamental model to screen thousands of stocks instantly, every day, based on Len Zacks' discovery:
The most powerful force impacting stock prices is Earnings Estimate Revisions.
When stock analysts raise their estimates of a company's earnings, its stock price tends to go up in the short term. And when earnings estimates trend downward, so do the stock prices.
|Zacks Strong Buys||+26% per year|
|S&P 500||+10% per year|
|Zacks Strong Sells||+2% per year|
This is one of the most proven truths about the stock market. Since 1988, Zacks Rank #1 Strong Buy stocks (so rated for upward swinging earnings estimates) have nearly tripled the S&P 500 with an average gain of +26% per year. But Zacks Rank #5 Strong Sells (with downward swinging earnings estimates) perform more than 4X worse than the market.
These returns were examined and attested by an independent accounting firm - Baker Tilly Virchow Krause LLP.*
What's more, Investars (another independent organization), rated Zacks research #1 in quantitative research from 2011 through 2015. Its cumulative return during that time span was +130%.
For me, the stunning power of earnings estimate revisions was a transforming revelation. It meant I could get the most out of my market swing predictions by focusing on specific companies that are firing up to outperform (or underperform) others in their sectors.
Armed with the Zacks Rank, I have a higher probability of knowing where the big money is going weeks before it gets there. (They know about earnings estimates, too.)
After studying earnings in the spring of 2014, I alerted my followers to a "Buy in May" thesis. While investors everywhere were getting ready to pack it up and "sell in May" after a very choppy encore to the terrific 2013 returns, we began accumulating key leveraged ETFs from late April through early June. Here were 8 consecutive closed trades exactly as they happened:
|QQQ 3X Bull||200||06/05/14||69.00||06/11/14||72.00||600.00||+4.35%|
|EM 3X Bull||200||04/30/14||26.50||06/11/14||31.39||978.00||+18.45%|
|S&P 3X Bull||300||06/05/14||72.50||06/09/14||74.75||675.00||+3.10%|
|SmlCap 3X Bull||200||06/05/14||69.50||06/06/14||75.50||1,200.00||+8.63%|
|SmlCap 3X Bull||200||05/28/14||70.00||06/06/14||75.00||1,000.00||+7.14%|
|S&P 3X Bull||300||05/19/14||67.50||06/02/14||71.80||1,290.00||+6.37%|
|QQQ 3X Bull||200||05/19/14||62.00||05/29/14||68.10||1,220.00||+9.84%|
|SmlCap 3X Bull||200||05/19/14||65.50||05/27/14||71.00||1,100.00||+8.40%|
Then we bought the lows in October of 2014, as fear was running wild about Ebola, and rode sizable profits into November and December, like a 27% gain with Nasdaq 100 3X Bull ETF and a 40% gain in the VelocityShares VIX Inverse ETF.
We did it again in 2015 when I warned that the market was getting very top-heavy and over-valued in July. By moving allocations to a large cash position, we avoided the steep declines of the third quarter and paved the way bargain-hunt with confidence in September and October when the market solidified a "fortress of institutional demand" at S&P 1900.
What Can All This Mean For You?
It simply suggests you can be on top of events rather than operating in their aftermath.
Will all of our Tactical Trader predictions be as successful as that? Of course not. But recent market turbulence is creating trading setups that most investors never see.
Today's Hidden Bull Profit Opportunities
As of now, I am closely monitoring three sectors that can make significant money for us no matter which way the market breaks.
Today there is compelling profit potential from broad swings in . . .
- Technology (One of my specialty focus areas that has beaten the market over the past few years.)
- Health Care (Another of my favorites and another market beater.)
- Energy (This will surprise many investors but I believe a tremendous turnaround will soon begin.)
Of course, there will be losing trades which we'll quickly sell off. But look at the flurry of 2015 trades I recommended in the big winning sectors of the last 3 years, Technology and Healthcare:
- Avago Technologies: 8 swing trades with an average gain of 12.4% each and only one loss among them
- Acadia Healthcare: 5 swing trades with an average gain of over 22% each and only one loss among them
- Mobileye: 5 swing trades with an average gain of 22.77% each and no losses
- Ambarella: 5 swing trades with an average gain of 21.27% each and no losses
Regarding specific industries in the weeks to come, I am targeting Semiconductors, Biotechnology, and Oil & Gas Refiners. Plus the U.S. Dollar and Euro Currency.
How to Make Most of Your Money While Other Investors Behave Irrationally
Every negative turn seems to stir up doubts and fears that send ripples through U.S. markets. But that can be very lucrative for us. Emotions like these lead to swings that churn up Extreme Value Areas. That's when we'll apply the principles of "Behavioral Finance." And follow Zacks Rank and other fundamental signals to determine when the time is right to buy and sell.
We'll exploit these market swings with individual stocks, ETFs, options techniques like straddles and strangles, and more.
It Couldn't Be More Convenient:
As a member of Tactical Trader, you can receive email alerts showing exactly what to do and when to do it. Starting today.
In other words, you can benefit from all of our moves without shadowing companies and markets for hours a day.
Normally, access to our Tactical Trader portfolio will be closed to the public, but when available its cost will be $995 per year and a bargain at that.
An Even Better Arrangement . . .
Yet starting today, for a period of one full month, you are invited to follow our real-time trades and the thinking behind them for the sum total of only $1.
Plus that same $1 admits you to our Zacks Ultimate program which reveals ALL the buys and sells from ALL Zacks portfolios for a full 30 days without any obligation whatsoever. Get on the waiting list now! Take advantage now. Take advantage now.
The Ultimate $1 Opportunity
All Zacks Buys and Sells (including the new Tactical Trader.)
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- Not One Cent of Further Obligation.
Why do we offer you an arrangement like that? The simple fact is that Zacks Ultimate serves as a showroom where you can check out any or all of our high-performance portfolios. Then as many investors do, you may join the ones that suit you best. Or join none of them. The choice is up to you.
Let me make a suggestion: Go ahead and explore Tactical Trader plus our other Zacks trading or investment portfolios packed inside Zacks Ultimate. Below you will see a list of all the services available to you for the next 30 days.
You might sample our earnings surprise companies, stocks under $10, momentum picks, and insider trades. Also see what Zacks.com chief Steve Reitmeister will add to his personal portfolio just before he invests his own money.
No matter what kind of investor you are, there are timely buy and sell recommendations to help you make more money in the market.
One Month. One Dollar.
- Tactical Trader
- Black Box Trader
- Surprise Trader
- Momentum Trader
- Options Trader
- Stocks Under $10 Investor
- Home Run Investor
- Value Investor
- Income Investor
- Zacks Top 10 Stocks for 2016
- Game Changers
- Insider Trader
- Follow the Money Trader
- International Trader
- Reitmeister Trading Alert
- ETF Investor
- Zacks Premium
Sound like too much information? Well, it really isn't. During the next 30 days you can focus on Tactical Trader and just browse the other portfolios, test-driving whatever captures your interest.
And then, after your $1 for 1 month trial, you have three simple choices:
- 1. Walk out of the showroom anytime you please and not pay one cent more.
- 2. Continue your see-it-all Zacks Ultimate subscription for only $299 a month.
- 3. Join just Tactical Trader or one of the other individual portfolios.
Once again, the choice is entirely up to you.
Backed by 2 Airtight Guarantees
And don't worry, you are covered by a Satisfaction Guarantee. You may cancel up to 90 days after your trial is over. And if you feel we have not exceeded your expectations, then we will refund every last cent - including the $1 you paid for the trial. No problem.
But that isn't the half of it.
You're also backed by a full-year, money-back Performance Guarantee. Details. That means if we don't help you beat the market, we don't deserve your money.
No one else offers a combination of money-back assurances like these. That's because no one else has a proven system like the Zacks Rank that beats the market so consistently, year after year.
Important: Tactical Trader is Closed to New Investors. Get on the List
Important: Tactical Trader Closes to New Investors
Sunday, January 17. Get In Now.
Targeting the Hidden Bulls
- Focus on generating quick, substantial gains.
- Private daily Buy/Sell/Hold email alerts.
- Market commentary and reports on tickers in portfolio.
- Typically 10 positions will be in the portfolio - it's easy to follow them.
- Holding periods are expected to average 1 to 12 weeks.
If demand becomes too great it will close even sooner. To make it easier for our members to profit, we must limit the number of investors who have access to the buys and sells.
Don't Miss the First Tactical Trader Moves
You're covered by two full-refund guarantees, so don't hesitate. Get started now.
Call us toll-free at 1.888.775.8348. Outside the U.S., 1.312.265.9239. Phones are answered 10 am to 6 pm ET weekdays.
I look forward to our time together as we seek quick, substantial profits from both upward and downward market swings. Let's cash in on bulls that are hidden from most of the world's investors.
We'll use the full arsenal of Zacks research and tactics to maximize their profit potential, no matter where the overall market heads.
Thank you and good trading!
Senior Stock Strategist