With this service, we target S&P 1500 Composite Index (S&P 500, S&P 400 & S&P 600) additions. Your goal is to get “in” as quickly as you can after the announcement is made … then get “out” after huge index funds (mutual funds and ETFs) have made their purchases.
As a reminder, you should only be in these trades for a couple days on average. For more information on various ways to use this strategy along with other important pointers, please be sure to read the Wall Street Front Runner Trading Manual if you haven’t done so already.
Now, let me give you the announcements that sparked today’s trading opportunities along with the steps to consider taking …
Announcements:
On 11/17/17, S&P announced:
- S&P SmallCap 600 constituent MKS Instruments Inc. (NASD: MKSI) will replace Brocade Communications Systems Inc. (NASD: BRCD) in the S&P MidCap 400 Index effective prior to the open of trading on 11/22/17.
- Invesco Mortgage Capital Inc. (NYSE: IVR) will replace MKS Instruments Inc. (NASD: MKSI) in the S&P SmallCap 600 Index effective prior to the open of trading on 11/22/17.
- Tactile Systems Technology Inc. (NASD: TCMD) will replace Lumos Networks Corp. (NASD: LMOS) in the S&P SmallCap 600 Index effective prior to the open of trading on 11/22/17.
Recommended actions:
Core Trades:
1. Buy Invesco Mortgage Capital Inc. (NYSE: IVR) at market open on 11/20/17.
Then, once that order is executed …
Aim to sell Invesco Mortgage Capital Inc. (NYSE: IVR) at – or close to – the market close on 11/21/17.
2. Buy Tactile Systems Technology Inc. (NASD: TCMD) at market open on 11/20/17.
Then, once that order is executed …
Aim to sell Tactile Systems Technology Inc. (NASD: TCMD) at – or close to – the market close on 11/21/17.
Bonus Trades:
3. Buy MKS Instruments Inc. (NASD: MKSI) at market open on 11/20/17.
Then, once that order is executed …
Aim to sell MKS Instruments Inc. (NASD: MKSI) at – or close to – the market close on 11/21/17.
* Market open – Place your buy order at market prior to 9:30 a.m. Eastern on specified date above.
* Market close – Place your sell order at market as close to the close as possible on specified date above. Ideally, between 3:45 p.m. Eastern and 4 p.m. Eastern. Use a “market-on-close” (MOC) sell order if your broker allows (in most cases, you will need to place MOC orders before 3:45 p.m. Eastern by phone).
Best,
Grant Wasylik