If you were one of the many investors that were blindsided by the amazing market surge since the election, don't be ashamed. Not everyone was prepared for the market surge that came from Trump's election and people are now regretting that they weren't in early.
The promise of deregulation, tax cuts and infrastructure spending have made investors downright giddy. There is a sense of euphoria in certain sectors and if you're not exposed, you most likely are questioning what to do next.
It's important to not dwell on the past and prepare for the rest of 2017. You might not be able to catch up with those that were locked in before the election, but there is still room to get on board the Trump Trade.
What is the "Trump Trade"?
Investors were ready to embrace Trump when his polices became clearer. Sector rotation all of a sudden was the name of the game. Money managers started flowing into sectors that were thought to outperform under a Trump Administration.
Continued . . .
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The Stock Market Is Rigged!
Computer-automated high-frequency traders (HFTs) flat-out scare investors into selling good stocks. Then, when prices dip, they swoop in to catch the bounceback. This can be consistently and immensely profitable. One HFT had only a single losing day out of several hundred.
What if you could "Counterstrike," riding only the best of these unfairly pushed-down stocks - as they rebound for tremendous potential profit?
Zacks has developed a way to help you do just that. Take advantage of a special opportunity that ends Saturday, March 11.
See our Counterstrike stocks now >>
------------------------------------------------------------------------------------------------------
Lower taxes and the repeal of the Dodd-Frank Act were big positives to Wall Street. Almost every financial stock ripped, sending the Financial ETF (XLF) up 13% in November.
The promise of over $1 Trillion infrastructure spending also brought buyers into the industrial and material stocks. The Industrial ETF (XLI) was up 9% for the month, while materials ETF (XLB) was up 6%.
While the initial money has been made, the trade isn't over. It will likely be months before the market fully prices in the results of Trump's election.
Too Late to Profit?
The "Trump stocks" have made their initial move, which makes it seem like there isn't much left if you're looking to buy now. However, this doesn't mean that there won't be tons of profit opportunity to get back into these stocks when they choose to pull back.
The sectors that ran up in November will continue to perform, investors simply need to be cautious about their entry point when buying individual stocks.
Below I outline 3 important steps to buying the Trump stocks:
1) Create A Watch List
Investors often don't know how to find stocks. In the case of the Trump Trade, it is very important to create a watch list of stocks to buy when they fall to acceptable levels. Stocks naturally pull back, even if they are destined to move higher.
A watch list can help an investor focus in on a group of stocks and ignore the rest of the noise. It will also help an investor recognize daily price movements and support and resistance levels.
Creating a list of the stocks that surged 10, 20 or 30 percent since November is a good start and can be done in the Zacks Stock Screener. Remember that finding those stocks that are in the Trump-favored sectors are crucial for future success.
2) Target Stocks That Move
In order to make money, a stock has to move. Dealing in higher beta stocks, or stocks that have larger daily moves, will give an investor a higher probability of making money over a shorter time period. This is very important for investors that are looking to play pullbacks of overextending stocks, such as the ones we have seen as a result of the election.
When pullbacks come they will likely overshoot, which is exactly when smart investors get in. Computer driven trading can cause stocks to travel way beyond what is considered "normal". Taking advantage of these moves and getting good entries can lead to juicy profits down the line.
3) Pulling the Trigger
After a sell off comes, it's time to decide whether or not to enter the stock. By using the fundamental aspect of the Zacks Rank and technical analysis, investors can be confident when entering a stock.
Sticking with Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks, can present a huge advantage. There is no better driver of stock price than earnings and the Zacks Rank illustrates that for you.
The stars align when a high ranked stock on the watch list comes into a technical setup. This is where Zacks Counterstrike takes action.
Counterstrike
You may not know how to spot when a Trump stock is ripe for the picking...but I do. It comes from spending 12 years as a professional trader and seeing this pattern over and over again. So why not join the Trump trade and profiting from the sector rotation that is to come?
That is the mission of my portfolio service, Zacks Counterstrike.
It's designed to sniff out when the computers have made a short-term mistake. We will take advantage of beaten-down quality stocks and also short stocks that are not fundamentally sound. Then when these stocks have moved our way, we will lock in gains and look for the next opportunity.
We're now holding 9 stocks and getting ready to trigger trades from my watch list at any moment. Our goal is to generate double-digit gains in 1-4 weeks.
Be sure to look into Counterstrike today. As an added incentive to take action now, you are invited to download a Zacks Special Report, Roadmap to Mega-Profits absolutely free. Deadline to download is Saturday, March 11.
This bonus offers you a nice balance to our short-term Counterstrike trades because it pinpoints an industry with explosive long-term growth potential. Did you miss Apple's 9X stock explosion since they launched their iPhone in 2007? Well, for the industry in our report, 2017 could be the same kind of pivotal year. And you'll see 8 stocks set to make the most of it.
See Our CounterstrikeTrades and Free Mega-Profits Report Now >>
Wishing you great financial success,
Jeremy
Jeremy Mullin has been a professional trader for more than 12 years with specific expertise in profiting from patterns set by High-Frequency Traders. He is the editor of Zacks' Counterstrike portfolio recommendation service.
Image: Bigstock
Is it Too Late to join the "Trump Trade"?
If you were one of the many investors that were blindsided by the amazing market surge since the election, don't be ashamed. Not everyone was prepared for the market surge that came from Trump's election and people are now regretting that they weren't in early.
The promise of deregulation, tax cuts and infrastructure spending have made investors downright giddy. There is a sense of euphoria in certain sectors and if you're not exposed, you most likely are questioning what to do next.
It's important to not dwell on the past and prepare for the rest of 2017. You might not be able to catch up with those that were locked in before the election, but there is still room to get on board the Trump Trade.
What is the "Trump Trade"?
Investors were ready to embrace Trump when his polices became clearer. Sector rotation all of a sudden was the name of the game. Money managers started flowing into sectors that were thought to outperform under a Trump Administration.
Continued . . .
------------------------------------------------------------------------------------------------------
The Stock Market Is Rigged!
Computer-automated high-frequency traders (HFTs) flat-out scare investors into selling good stocks. Then, when prices dip, they swoop in to catch the bounceback. This can be consistently and immensely profitable. One HFT had only a single losing day out of several hundred.
What if you could "Counterstrike," riding only the best of these unfairly pushed-down stocks - as they rebound for tremendous potential profit?
Zacks has developed a way to help you do just that. Take advantage of a special opportunity that ends Saturday, March 11.
See our Counterstrike stocks now >>
------------------------------------------------------------------------------------------------------
Lower taxes and the repeal of the Dodd-Frank Act were big positives to Wall Street. Almost every financial stock ripped, sending the Financial ETF (XLF) up 13% in November.
The promise of over $1 Trillion infrastructure spending also brought buyers into the industrial and material stocks. The Industrial ETF (XLI) was up 9% for the month, while materials ETF (XLB) was up 6%.
While the initial money has been made, the trade isn't over. It will likely be months before the market fully prices in the results of Trump's election.
Too Late to Profit?
The "Trump stocks" have made their initial move, which makes it seem like there isn't much left if you're looking to buy now. However, this doesn't mean that there won't be tons of profit opportunity to get back into these stocks when they choose to pull back.
The sectors that ran up in November will continue to perform, investors simply need to be cautious about their entry point when buying individual stocks.
Below I outline 3 important steps to buying the Trump stocks:
1) Create A Watch List
Investors often don't know how to find stocks. In the case of the Trump Trade, it is very important to create a watch list of stocks to buy when they fall to acceptable levels. Stocks naturally pull back, even if they are destined to move higher.
A watch list can help an investor focus in on a group of stocks and ignore the rest of the noise. It will also help an investor recognize daily price movements and support and resistance levels.
Creating a list of the stocks that surged 10, 20 or 30 percent since November is a good start and can be done in the Zacks Stock Screener. Remember that finding those stocks that are in the Trump-favored sectors are crucial for future success.
2) Target Stocks That Move
In order to make money, a stock has to move. Dealing in higher beta stocks, or stocks that have larger daily moves, will give an investor a higher probability of making money over a shorter time period. This is very important for investors that are looking to play pullbacks of overextending stocks, such as the ones we have seen as a result of the election.
When pullbacks come they will likely overshoot, which is exactly when smart investors get in. Computer driven trading can cause stocks to travel way beyond what is considered "normal". Taking advantage of these moves and getting good entries can lead to juicy profits down the line.
3) Pulling the Trigger
After a sell off comes, it's time to decide whether or not to enter the stock. By using the fundamental aspect of the Zacks Rank and technical analysis, investors can be confident when entering a stock.
Sticking with Zacks Rank #1 (Strong Buy) and #2 (Buy) stocks, can present a huge advantage. There is no better driver of stock price than earnings and the Zacks Rank illustrates that for you.
The stars align when a high ranked stock on the watch list comes into a technical setup. This is where Zacks Counterstrike takes action.
Counterstrike
You may not know how to spot when a Trump stock is ripe for the picking...but I do. It comes from spending 12 years as a professional trader and seeing this pattern over and over again. So why not join the Trump trade and profiting from the sector rotation that is to come?
That is the mission of my portfolio service, Zacks Counterstrike.
It's designed to sniff out when the computers have made a short-term mistake. We will take advantage of beaten-down quality stocks and also short stocks that are not fundamentally sound. Then when these stocks have moved our way, we will lock in gains and look for the next opportunity.
We're now holding 9 stocks and getting ready to trigger trades from my watch list at any moment. Our goal is to generate double-digit gains in 1-4 weeks.
Be sure to look into Counterstrike today. As an added incentive to take action now, you are invited to download a Zacks Special Report, Roadmap to Mega-Profits absolutely free. Deadline to download is Saturday, March 11.
This bonus offers you a nice balance to our short-term Counterstrike trades because it pinpoints an industry with explosive long-term growth potential. Did you miss Apple's 9X stock explosion since they launched their iPhone in 2007? Well, for the industry in our report, 2017 could be the same kind of pivotal year. And you'll see 8 stocks set to make the most of it.
See Our CounterstrikeTrades and Free Mega-Profits Report Now >>
Wishing you great financial success,
Jeremy
Jeremy Mullin has been a professional trader for more than 12 years with specific expertise in profiting from patterns set by High-Frequency Traders. He is the editor of Zacks' Counterstrike portfolio recommendation service.