A 15% Gain In 4 Days… Here’s How We Did It
If you blinked, you would have missed it. All of a sudden, the market is behaving like the market we remembered from a few years ago.
Rather than being subjected to knee-jerk reactions in stock prices based on China’s economy, the Federal Reserve or the latest “crisis” in Europe, investors finally have a free hand to make (or lose) money from one thing and one thing only.
#-ad_banner-#We’re right in the middle of earnings season, and my colleague Jared Levy has been telling his Profit Amplifier readers to ignore the “noise” in the market and instead focus on individual stocks. That’s because it is the best shot investors have to make a killing during this earnings season.
We’ve already seen a number of well-known companies report earnings, most notably Apple, which reported last week on Tuesday.
I’ve said before that Apple is one of the few remaining “no brainer” trades in the market. The company is firing on all cylinders, has a boatload of cash and the stock is cheap (trading at a forward price-to-earnings ratio of 11, compared to the S&P 500’s 17.6).
Just a few days before Apple reported, Jared weighed in, and he agreed.
|Once a stock market darling, Apple has fallen into an undeserved funk. Earnings are expected to be reported Tuesday after market close, and even though my proprietary earnings algorithm is forecasting a beat for the tech giant, the stock has a reputation for being unpredictable following its reports. |
The good news is that with a little statistical analysis and the right strategy, we can greatly increase our chances of profiting from Apple’s post-earnings move — even if the stock doesn’t move higher.
He went on to say that with valuation metrics near a 10-year low and with his “earnings algorithm” projecting a beat, it seemed like the perfect time to buy.
But, like Jared mentioned, Apple is well-known in trading circles for its unpredictability after earnings reports. According to Bloomberg, the stock has made an average daily move of 4.4% following its earnings reports. But while the company beat expectations in each of the past four quarters, calling the direction (up or down) of that move has been a “crapshoot.”
But Jared’s deeper statistical analysis showed that in the past two years, shares were higher 75% of the time 30 days after Apple reported earnings.
“Taking this into consideration, I have a trade that greatly increases our chances of success,” Jared wrote. “…all AAPL has to do is stay above $107 and today’s trade will deliver a return of more than 15% in less than a month’s time.”
Sure enough, the tech giant reported an earnings “beat” on Tuesday and the stock closed 4.1% higher the next day.
Not bad for the world’s largest company by market capitalization. Stocks this big rarely see such significant one-day moves.
But Jared and his subscribers were able to do even better… bagging a 15% gain in four days.
This has become par for the course for Jared and his followers. By using his “earnings algorithm,” they’re able to profit from the quick upside and downside moves in stocks during earnings season (while safely juicing their returns along the way).
Here’s more from Jared:
|I’ve developed a trading strategy specifically designed for this moment. As some stocks jump and others plunge, you can use it to walk away with quick gains of 40% or 50% again and again. |
During this brief window of time, you can make money no matter which way a stock goes… and you can do it over and over again, potentially lining your pockets with thousands of dollars each time.
If this sounds too good to be true, just know that Jared has been using his trading strategy during earnings season since he was a teenager. In fact, it helped him make $600,000 by the time he was 18.
It was shortly after that, at 19, when a member of the Philadelphia Stock Exchange took note of Jared and brought him on board. Soon, Jared was bringing in millions of dollars for wealthy clients and in a few years was able to buy a house for his mother and eventually retire from Wall Street.
Here’s why I bring all this up… We’re in a bit of a lull right now in terms of big, market-moving news. Earnings are moving the market — just as they should be. There’s no telling how much longer it will last, though (my guess is through December, when there will be another Fed meeting on interest rates). And investors should embrace this window of opportunity to profit while they can.
Bottom line: now is the time to strike.
Jared still uses his “earnings algorithm” strategy whenever earnings season comes along, and he’s been able to steer his Profit Amplifier readers to gains of 20% in 5 days, 70% in 12 days and even 123% in 43 days. He just released a new presentation detailing how his algorithm works and how you can use it to make the same kinds of gains he and his readers make every week. To view the presentation, visit this link.