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 12/7/17, S&P announced:
- Easterly Government Properties Inc. (NYSE: DEA) will replace PharMerica Corp. (NYSE: PMC) in the S&P SmallCap 600 Index effective prior to the open of trading on 12/12/17.
- Cutera Inc. (NASD: CUTR) will replace Tesco Corp. (NASD: TESO) in the S&P SmallCap 600 Index effective prior to the open of trading on 12/15/17.
Recommended actions:
Core Trades:
1. Buy Easterly Government Properties Inc. (NYSE: DEA) at market open on 12/8/17.
Then, once that order is executed …
Aim to sell Easterly Government Properties Inc. (NYSE: DEA) at – or close to – the market close on 12/11/17.
2. Buy Cutera Inc. (NASD: CUTR) at market open on 12/8/17.
Then, once that order is executed …
Aim to sell Cutera Inc. (NASD: CUTR) at – or close to – the market close on 12/14/17.
* 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