They're playing us, but we're about to turn the game to our advantage in a big way.
Maybe you've been a victim. You go online, enter your stock ticker, and discover that it suddenly fell off a cliff for no good reason.
No good reason at all.
The HFT Profit Play
- HFT shorts a good stock.
- This causes many investors to panic sell.
- HFT closes out their short position for a small profit.
- Then buy the pushed-down stock as it rebounds for a big profit.
Finally, individual investors can join them for the ride!
It feels like a punch in the stomach. You can understand why even the most experienced investors accept such losses and unload their shares. Or watch with helpless dread as the price plummets even further.
This is what happens when computer-driven High-Frequency Traders employ their favorite tactic which is to short good stocks and ignite panic sell-offs.
Then when their algorithms call the bottoms, they flip their positions and ride the same stocks as prices slingshot upward.
The result is a steady stream of profits for them. How steady?
One HFT firm has suffered only a single losing day in 6 years!
You can't beat those near light-speed trades . . .
But you can join them.
Now you can make money on the rebounds, too.
I'm Jeremy Mullin, stock strategist at Zacks. As an equity, futures, and options trader, I have been closely monitoring HFT moves for more than 12 years.
This is my specialty and my passion. I can almost smell when stock dips are being manipulated. Better still, with the resources of Zacks behind me, I can brief you on the best of these HFT moves.
Targeting double-digit gains in days to weeks1.
Let me show you some examples of ways in which I used Zacks resources to profit from suspicious trading activity.
I had been watching Stamps.com for a long time and took note of a suspicious price drop in early July, 2016. A lot of short sellers had been pounding this stock but it was a Zacks Rank #1 Strong Buy and racked up a huge EPS beat and a fiscal year raise in guidance. The beat pushed the stock up over 7% but then short sellers drove it down again 10%.
So we jumped aboard the ensuing HFT profit ride at 74.80 and sold August 22 at 83.75, a gain of +17.7% in 4 weeks.
Another example occurred with Adeptus Health which operates a string of freestanding emergency rooms in the U.S. This stock was another Zacks Rank #1 Strong Buy and it registered a solid earnings beat. Yet I saw it fall from 63 to 60.35 in just over 10 minutes.
Did an algorithm misread the beat or was an HFT pushing Adeptus down to profit on the rebound? Either way, we didn't want to miss this opportunity and bought at 62.00 on April 20. We sold at 69.05 on April 28 for a gain of +11.4% in 8 days.
Then there was Tilly's, a specialty retailer in the action sports industry. This was still another Zacks Rank #1 Strong Buy with a booming earnings beat the previous quarter.
I had been eying this stock for about 8 days since aggressive sell programs slammed it down more than 10% for no apparent reason. On September 28 we jumped in at 9.18 and rode it to 10.50 on November 22, a gain of +14.4% in less than 2 months.
Also looking to profit from stocks going down.
I should mention that we can also make money shorting unworthy stocks with prices that have been unfairly pumped up by HFTs.
Our purpose would then be to ride these companies downward to their rightful levels (and make a bundle doing so). This can be an especially reliable way to earn substantial profits as the market turns bearish.
For example, analysts were sharply reducing their earnings estimates for JD.com, a Chinese online direct sales company. It seemed obvious to me that HFTs had unfairly pumped up its price. On Monday, April 27 I missed a sharp drop but my signals indicated it was still overvalued at 25.90 on April 28. So we short sold and enjoyed the rest of the downward slide to 22.45 on May 12, gaining +13.3% in 14 days.
How do you make that kind of money?
You might be able to do it on your own if you're willing to put up with some hunger, thirst, and sleep deprivation, watching maybe four computer screens with hawk-like intensity.
Even then, it takes years of hit-and-miss experience to recognize key trading patterns and understand why the price movements are irrational and worth your attention, or rational and better ignored.
Luckily there's a surer and far more convenient way to profit from these sudden dips and jumps.
This is where Zacks Counterstrike comes in.
It's our unique approach to trading in today's modern computer-driven markets.
This Counterstrike portfolio will pounce on imbalances created by HFTs and their algorithms. It's designed to thrive on volatility, profiting from irrational trades by unknowing investors heading the wrong way.
Not just any Manipulated Price Move . . .
But let me emphasize that we will only follow the best of them.
We'll use our not-so-secret weapon, the Zacks Rank, to filter for stocks that are fundamentally sound and primed for growth. As you may know, this is one of the most proven short-term indicators. From 1988 for 27 years, it has nearly tripled the S&P 500, generating an average gain of +26% per year.
These astounding returns were examined and attested by Baker Tilly Virchow Krause, LLP,* an independent accounting firm.
Normally, access to Counterstrike is closed to the public, but when available its cost will be $995 per year and a bargain at that.
But how much does it cost right now?
For the next 30 days, you are invited to see our moves for the sum total of only $1.
And that tiny amount covers a lot more than the Counterstrike trades. It 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.
The Unique Zacks $1 Opportunity
- All Zacks Buys and Sells (including Counterstrike).
- One Month.
- One Dollar.
- Not One Cent of Further Obligation.
Why do we offer you an arrangement like this? 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 Counterstrike plus any other Zacks trading or investing portfolio packed inside Zacks Ultimate. Below you will see a list of all the services available to you for the next 30 days.
Zacks Ultimate gives you full access to Counterstrike and all of our most valuable services:
|Black Box Trader||$995/yr||Included|
|Home Run Investor||$299/yr||Included|
|Reitmeister Trading Alert||$995/yr||Included|
|Zacks Top 10 Stocks||$299/yr||Included|
|Stocks Under $10||Available Exclusively with this Offer|
Your Cost for 30 Days $1
You might sample our earnings surprise and insider trading stocks. Or explore the giant long-term upside potential of the Home Run Investor. No matter what kind of investor you are, there are timely buy and sell recommendations to help you make more money in the market.
Too much information? Not at all. During the next 30 days you can focus on my picks and commentary while browsing the others, 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 one or more of the individual portfolios.
Once again, the choice is entirely up to you.
Backed by 2 Airtight Guarantees
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.
Counterstrike is Closed to New Investors
- Daily Buy/Sell/Hold Email Alerts
- Market commentary and reports on tickers in portfolio
- Typically 8 stocks on the board with double-digit gain potential.
- Holding period: 1 to 4 weeks.
Don't miss this brief opportunity to jump aboard, and also to sample all of Zacks' other services at so little cost and at no further obligation.
To join, please call toll-free (M-F 10-6 ET) at 1.888.775.8348. Outside the U.S., 1.312.265.9309.
I look forward to welcoming you into our exclusive investor group. In the world of stocks, there's nothing more satisfying than these rapid-fire rebounds!
Thank you, and good investing,