Weekly Update: Bulls Fail to Keep the Bears at Bay
After huge up-days on Monday and Tuesday, stocks got clobbered on Friday, erasing nearly all of the gains from earlier in the week.
Even back-to-back 90% up-volume days (something that would be hugely bullish any other time) was not enough to keep the bears at bay.
Until we see a consistent and meaningful advance in the market, I remain focused on the short side.
And as I pointed out last week, cash is a position. Don’t be scared to sit on the sidelines and wait for more optimal conditions.
Staying Short
Last week, I pointed out three potential short trades I was watching, and all of them made big moves lower as anticipated.
The best performer was Lantheus Holdings, Inc. (LNTH)…
I was looking to short the stock on a re-test of the prior support level near $67.
In fact, we took this trade in my Alpha Stocks service, selling short at $76.04.
Alpha Stocks is a much more active trading service, and these are the kinds of trades we look for there as well.
Using our precise, low-risk approach, we were able to risk less than 5% on a trade that is currently up almost 15%.
This is a concept known as “asymmetric risk”…
Asymmetric Risk
It boils down to risking a fraction of what you plan to make.
By only taking trades that can pay you a multiple of what you are risking, you can maintain an edge in the market.
Lose a little when you’re wrong… Make a lot when you’re right…
That’s the secret to successful trading.
We did the same thing on Array Technologies, Inc. (ARRY), which I brought to your attention last week as well.
In fact, we were able to enter short within pennies of the week’s high.
As of this writing, Alpha Stocks is up 13% on that trade as well.
Stealth Trades Watchlist
Click here to view this week’s full Watchlist!
But remember that not all of the stocks on our Watchlist are actionable…
When it’s time to make an official recommendation for our Trade Tracker, I’ll let you know on our Alerts page right here!
Join the Insiders
Now, if you’ve ever wondered how I developed a proven track record of trading along the insiders like corporate CEOs, CFOs, executives and board members…
Do yourself a favor and check out my latest Insider Effect presentation!
Corporate insiders are always buying or selling shares in the companies they operate. These folks have a footing of knowledge that Main Street investors simply do not.
I covered my strategy for trading alongside corporate insiders and generating potentially massive gains as a result.
Live Coaching Session
I hope you’ll join me on Monday, Oct. 10, for our next live Stealth Trades session at 3:00 p.m. ET…
We’ll cover all of our new stocks on the Watchlist as well as the rest of the stocks inside Stealth Trades.
You need to attend this session to get the most from your subscription!
In the meantime, you can watch the replay of our latest Stealth Trades session right here.
Best wishes for your trading,
Ross Givens
Editor, Stealth Trades
P.S. Click here to learn more about my Insider Effect strategy and see what you could be missing out on.