My first real taste of the stock market came in the late ‘90s.
Fresh out of college, I started working for a large brokerage firm and there was a heady buzz of excitement that filled the air every trading day. These were the last days of the dot-com bubble, where I got the chance to watch initial public offerings (IPO) for companies such as Red Hat and Pets.com. In 1999, there were 457 IPOs, of which 117 doubled in price the first day of trading.
In those fast and furious trading days, where the world had one eye on then-Fed Chair Alan Greenspan and another on the Nasdaq, it didn’t seem difficult to uncover a profitable trade that allowed you to rake in a triple-digit gain in just a matter of days.
But in the last 15-plus years, I’ve watched more than a few bubbles burst and fortunes lost. And despite the flurry of activity that is driving the financial media to froth each day, I’ve found that solid profits can be made trading if you can locate one key component…
Find the Hidden Trend
Too many traders new to the market are overwhelmed by the sheer size as they attempt to wade in. Thousands of stocks are trading millions of shares across the various exchanges every day and that’s not even including all the companies changing hands on foreign exchanges around the globe.
But to get ahead and rake in solid gains, you don’t need to know what’s happening with every company. In fact, if you specialize in a small group that exhibit very specific trends time and time again, you can capture significant gains on a regular basis.
It’s all about finding the hidden trends that these stocks follow, reading the signals of when to get into the trade and when to get out. That’s what Jeff Opdyke has done with his new Precision Profits trading service.
Jeff’s careful study of the market has enabled him to locate a narrow block of securities that regularly follow a trading pattern. As a result, he has been able to spot the best times to get in and out of a trade, allowing Precision Profits subscribers to capture triple-digit gains on a regular basis over a short time period.
Let me show you a recent trade…
A New Opportunity for Profits
Carnival (NYSE: CCL) is a large cruise-ship operator headquartered in Miami. Its shares have time and again followed a predictable pattern that too many traders have easily overlooked.
In 2014, the shares of Carnival suffered a significant pullback after investors panicked at the arrival of Ebola in the U.S. As the market calmed, Jeff looked for an opening to enter into a new Carnival trade, because he’d discovered that the shares of Carnival performed well during the winter months.
Even though it was only the first week of November, winter records were already being broken. More than a foot of snow fell in Maine over the weekend before the trade was initiated, and snow even reached as far south as South Carolina. Another polar vortex was clearly starting up — just as our in-house certified consulting meteorologist projected. And once we got into the true maw of the polar vortex, Northeasterners would be flocking south for the winter.
Cold winters love Carnival. History proves it.
The chart is clear: In winters that are typical, and especially in those that are colder than normal, Carnival’s shares ride a wave of investor expectation higher, on the assumption that Carnival will post strong earnings going into late spring.
And in years when winter is a bust — at least from a cold-weather perspective — Carnival doesn’t do much. That’s the shaded area, the winter of 2011/2012. Carnival rose a bit, about 10%, but largely flamed out relative to years with more normal winter weather.
Jeff found that with another vortex-y winter on the way, Carnival’s stock was poised to rise into the late spring, ultimately gaining 30% or so.
And when combined with options, investors would be able to lock in substantial gains.
So on November 5, Jeff advised subscribers to purchase an April $40 call for less than $2.90 while the shares of Carnival were trading at $40.
What Happened Next?
The shares of Carnival bounced back from their November lows as Jeff had predicted. In the next month, the stock jumped approximately 8%, translating into a 100% gain for the April call. Jeff recommended that Precision Profits subscribers close one-half of their position, locking in a 100% gain to protect the profits they’d enjoyed so far.
But the shares of Carnival weren’t done yet. The stock continued to rally, gaining a total of 15% from our original entry in November. Jeff recommended that subscribers close out the remaining half of their call position for a gain of 145%.
That’s not a bad profit considering that the broad-market S&P 500 was flat during that same time frame!
Through Jeff’s careful research and knowledge of what factors to look for, he was able to uncover this trend in Carnival and take advantage of it for triple-digit gains. And that’s just one stock he’s found that exhibits very specific and predictable trends. As for how the portfolio has recently done, just this past month, readers made gains of 33%, 109% and 109% in quick succession.
Don’t Miss Out
For a limited time, we are offering readers a chance to subscribe to this exclusive service. But we have limited space.
Click here to learn more about Precision Profits and how you can take advantage of the hidden trends within the stock market.
Don’t miss out. This special offer ends at midnight EDT tonight!
By joining Precision Profits, you’ll see the hidden trends within the stock market — and make a sizable profit while other investors aren’t.
Sr. Managing Editor, Sovereign Investor Daily