Mob Rule: How We Locked In 800% Gains This Week
We locked in a whopper of a profit this week.
Andy, I continue to be amazed by the quality of your research and recommendations. On a day when the Dow dropped over 600 points, my portfolio, which is composed exclusively of your recommendations, was up 11%. – Alpha Money Flow subscriber N.B.
Great stuff… but we can’t take the credit.
It’s all thanks to those oh-so-angry mobs that seem to be popping up wherever there aren’t enough participation trophies to go around.
If they’re not ransacking cities or threatening democracy… they’re storming the markets.
You’ve certainly heard the news.
A handful of stocks have been the target of a huge and angry online mob.
These nefarious traders – armed with an entitled mindset and a pile of freshly printed mailbox money – caught wind that a few “greedy” hedge funds had large bets against a few failing companies.
With a mob mentality of fighting against anything big or successful… they fought back.
They pushed their bids higher and higher, reminding those “evil shorts” that infinite losses aren’t just theoretical – they’re painful too.
We won’t argue who is right and who is wrong. A free market has the right to play all the games it wants.
We will remind any Reddit users who read this column of one of our favorite sayings, though.
“Play stupid games… win stupid prizes.”
The latest class of regulators in Washington are licking their newly appointed lips at the chance to point fingers and tighten the screws.
This “crisis” surely won’t go to waste.
And, no doubt, the little guy will suffer.
A mere peek at the headlines hints at what’s ahead…
It’s the idea that takes us back to the theme we’re so sad to report – this ain’t your daddy’s stock market.
The New Indicator
The days of looking at end-of-day quotes in the back of the newspaper… of running our finger down a balance sheet looking for an opportunity… of “traditional” valuations and ratios… have gone the way of party lines, rotary phones and, dare we say it, dial-up internet.
One by one, those tried-and-true old-school methods have evolved into a high-speed, omnipresent hum that surrounds us wherever we go.
This screeching static means the new indicator for traders looking to make a buck should be quite clear.
It’s something we’ve mused about often.
We’ve called it our No. 1 indicator… our North Star… the number that matters most.
When facts and figures no longer matter… when mobs rule the day… all that matters is the size of the mob.
The quote above proves it.
Figure out where the gang is headed next and all that MBA jargon that’s filled so many textbooks can go back to where it belongs… steadying a wobbly table.
Take the big trade we made this week in our popular Alpha Money Flow…
How We Did It
We originally recommended a position in Bed Bath & Beyond (BBBY) to readers on November 6.
The move was based on one of our favorite forms of buying volume… when the company buys its own shares.
The $2.7 billion company (at the time) had just announced a huge $675 million buyback program.
That sort of action was sure to attract a mob of investors.
“It’s time to buy,” we wrote. “And if things work out like I think they will… we could be selling our shares back to the company at a higher price in just a few weeks.”
At their peak this week, our shares were up by 150%.
Better yet… the options contracts we pitched with the position flat-out soared.
We wrote our readers on Wednesday afternoon and told them not to be greedy. Sell half your option position, we said, and lock in gains of more than 800%.
We held on to the other half… just to see how crazy this mob gets.
This is an extraordinary time to be a short-term investor.
“Buy and hold” has turned into “buy and pray.”
But track the mobs as they move piles of freshly printed money from stock to stock… and, oh boy, the sky is the limit.
Stocks… cryptocurrency… even real estate… Track the volume and you’ll find the winners.
For our absolute latest research on one of the hottest sectors of the market, click this link. If you think stocks are hot… wait until you see what we’ve found in the crypto market. The three coins we’ve got our finger on are set to soar. Click here now.
Do you have questions about what’s happened in the markets this week? Send them to firstname.lastname@example.org.