FIVE Automatic money principles-can we use them?

rvlv

Active Member
#1
Gents,

If there are hints and clues available, and if we can make something out of them,why not give a try?
Can we apply these so called things in our markets?


5 automatic money principles-options trading

Research and Trading Services
For the first time ever, BottarelliResearch is making the trading tactics used by 7-digit CBOE floor traders available to you.

nowhere else in the world can you learn these secret tactics -- and use them in real time
When you apply these secrets to your trading, you'll see an immediate impact on your profits.
I call these secrets "Automatic Money Principles: 5 Secret CBOE Tactics for 7-Digit Returns."
Let me give you a brief taste, fellow rifleman, of what these secrets can offer you...
------------------
Automatic Money Principle #1: The "Who Cares" Stock
A "Who Cares Stock" is what I call a company you need to buy despite its seemingly overblown fundamentals. Without revealing the secret of a "Who Cares" stock, you're buying a stock with momentum on its side. And if there's one golden rule of trading, it's never get in the way of a momentum stock.
It's a proven fact...momentum stocks will move higher despite valuation ratios like P/E and Price to Book that appear totally absurd. It's called a "Who Cares" stock because it's a "buy" despite all these crazy valuation ratios.
How can you possibly make money buying stocks like this?
Value investors constantly bet against momentum stocks. You see, whenever value investors get wind of a stock trading at some absurd P/E multiple, they expect a sudden down-turn in share prices, so they short the stock. Normally, this tactic makes money. But when you're dealing with a momentum stock, this large short position actually creates the exact opposite effect.
Remember, we're dealing with a momentum stock. So if the stock goes up $2.00 or $3.00, the large portion of shorts get spooked and cover themselves...creating a short-covering effect that leads to an even larger up-move! What you have is a stock that seemed over-valued at $70 a share now trading for $100...even $150 a share. And you've profited off this entire up-move!
Whole Foods Market (WFMI - NASDAQ) is a perfectly good example...
When I recommended buying call options on Whole Foods market at $76.00 a share, "value" investors thought I was nuts. With a high P/E multiple in a grocery-store environment with razor-thin margins, nobody thought the stock was worth anywhere close to $70.00 a share. They were all wrong. Not only did Whole Foods rally from $70.00 up to $100...but it continued its upward match up to $150.00!
------------------------
Automatic Money Principle #2: The "Indisputable Evidence" Play
The "Indisputable Evidence" Play is probably the single most important indicator used by floor traders. It's so important because it cannot be disputed.
In other words, when you see this indicator hit, you know -- 100 times out of 100 -- that a stock's next move will be higher (or lower -- it works both ways). Without revealing the secret of an "Indisputable Evidence" play, the secret is buying calls or puts on those stocks that indicate that they'll be moving higher or lower over the next 3-6 months.That's why I call it an "Indisputable Evidence" play. When you see a stock trade in this pattern, you know -- without looking at anything else -- the stock's bullish or bearish. It sounds simple, but this one indicator is totally ignored by the general investing public. Nobody off the CBOE floor realizes the significance of the indicator used in the "Indisputable Evidence" play -- and this oversight loses individual traders literally tens of millions in trading profits.
This principle was executed to perfection on a Nasdaq stock called AutoDesk (ADSK - NASDAQ).
AutoDesk displayed the qualities of the "Indisputable Evidence" play in May of 2004 when it traded for $18.00 a share. The moment this happened, I knew the stock was going higher...much higher. So I bought ADSK January 35 Calls. Over the next year, shares of ADSK ran from $18.00 up to $45.00, making a safe and easy 155% winner.
------------------------------------
Automatic Money Principle #3: The "Always Bullish" Guarantee
The "Always Bullish Guarantee" is the strongest indicator of a bullish stock you'll ever see. Like a last-second three-point shot at the buzzer, this trade has been described as "nothing but net." This secret allows floor traders to own $50, $75, even $100 stocks with a cost basis of $5.00 or less.
In fact, Mad Money host Jim Cramer used this technique to make $35,000 in ten minutes...and he learned it from studying CBOE floor traders.
Without giving away the secret, there are two actions made in the boardrooms of publicly-traded companies that tell you, without any doubt, that a stock will move higher. That's why it's called the "Always Bullish" guarantee. The only reason for making these two critical decisions is to help facilitate their stock for its next up-move.
The mainstream media -- along with individual investors -- typically learn about these actions weeks or months after the fact. By then it's too late. As a charter member to Bottarelli Research, you'll learn about these opportunities the instant they happen.A perfect example of this trade occurred in biotech stock Genentech (DNA - NYSE) in May of 2005. The moment the "Always Bullish Guarantee" happened (marked "Buy") I bought DNA January 75 Calls. A few months later, I sold these calls for a 131% gain.
-------------------------
Automatic Money Principle #4: The Downside "Gift Gap"
The Downside "Gift Gap" doesn't happen too often, but when it does, it's practically money in the bank. The secret is the oldest floor saying in the book, "the trend is your friend." The theory goes like this...
No stock goes straight up. Not even the most bullish stock on Wall Street moves up on a straight 45-degree angle. There will be bumps in the road, in terms of profit-taking...one-day sell-offs...or earnings disappointments. The trick is to find a large-cap or mid-cap stock in a bona-fide uptrend...and buy it anytime a one-day moves pushes the stock down 5% or more.
Traders consider this down-move in a bullish stock a "gift," and they know how to cash in big time.
A perfect example just happened in shares of Caterpillar (CAT - NYSE)...
In early November, shares of CAT got punished -- dropping $7.00 in one day because the company slightly missed their earnings. Most traders panicked and dumped their holdings in CAT. Bad move. Rather than selling out, I recommended buying CAT February 55 Calls (CAT BK) for $1.65. What happened next?
CAT quickly rebounded off these extreme lows...rallying past the $55.00 level where it began its drop. Exactly 30 trading days later, CAT was trading for $58.00, and the calls I recommended for $1.65 were trading for $4.40, good for a 166% gainer.
----------------------------
Automatic Money Principle #5: The One and Only Technical Indicator That Always Works
It's a dirty little secret of floor traders, but most of them use NO technical analysis. Why? Because in the time it takes them to study a chart -- and identify all the intricate signals involved in pure technical analysis -- they've probably missed out on making 2 or 3 winning trades. That's why most floor traders are trained to use only one simple metric to identify support and resistance points...and it works better than the hundreds of other indicators out there today.
Without giving away the secret, there's one simple metric found on a stocks 6-month and 12-month chart that tells you -- with a very high degree of accuracy -- whether their up-trends or down-trends will continue.Stocks in up-trends typically find support at these levels and stocks in down-trends typically find resistance at these levels. Therefore, if an up-trending stock is bouncing off this indicator, it's safe to buy calls. And if down-trending stocks are selling off at these levels, it's safe to buy puts.
-----------------------
The trade in Patterson Dental (PDCO - NASDAQ) is a perfect example...
In late July, PDCO tested -- and quickly jumped higher -- at this critical level. This was a sure-fire sign that PDCO was moving higher, and that's when I bought call options. By early 2005, PDCO had indeed rallied from $35.00 up to $50.00, and our call options gained 122%.

When you join Bottarelli Research, you'll put all five secrets together and have a trading service whose financial pedigree is unlike nothing youve ever experienced.
"But I Don't Have Time to Follow Another Investment Service"
You may have the initial reaction that you won't be able to keep up with this service, but you'll quickly realize three things with Bottarelli Research.
Your alerts will get to the point quickly. When a Bottarelli Research action alert hits your inbox, it's intended to be a 2-minute read. You'll get the situation, the forecast, the profit potential, and the trade. You then call your broker (or enter the trade online) and be done in 10 total minutes.
You'll soon come to trust the quality of the trades, the accuracy of the predictions, and the timeliness of the trading. Once you get a series of five or six consecutive winners under your belt, you'll see what a truly remarkable system this is -- and you'll start enjoying the ride.
You'll find no other way to receive this type of trading service. The secrets you'll be using with Bottarelli Research is truly unique. Few people understand them...and not many individual investors use them.
Bottarelli Research Web site... access to the two free reports:
Report #1: Automatic Money Principles: 5 Secret CBOE Tactics for 7-Digit Returns
Report #2: The Art of Picking Winners



rvlv
 

Similar threads