Instead of fretting, I’m urging — no I’m pleading — with Earnings Players to buy put options next week. If you think the market losses since the election were something, wait until next week.
Here’s what I know: There will be no agreement on the fiscal cliff until the last moment possible, not one chance. As such the worry in the market is likely to continue. Not only will it continue, but it will accelerate with every passing day that goes by without an agreement.
If there is one thing we can bet on it is that there is no politician irrespective of party affiliation that can steer us through this mess. If it were not so darned important that the opposite be true, I would be a bit bemused by the whole thing, but that is a story for another time.
Right now, the situation begs to be profited from in a major way. Stocks will not go up in this environment, plain and simple.
Going further, stocks of companies reporting earnings next week are likely to be the biggest loser. Take a negative market environment and add in a company reporting earnings that miss expectations and/or include reduced guidance for the future — and down she goes.
And the moves lower can be quite spectacular. Own a put on these babies and you can fatten your portfolio just in time for Thanksgiving.
3 MONEY-DOUBLING WINNING EARNINGS TRADES IN 3 DAYS! Including a 165% Profit from Our STONE COLD LOCK OF THE WEEK on the same day the Dow dropped 225 points and 75% of all stocks were down. Generate obscene profits of 100% to 600% from The Earnings Player’s picks in a matter of minutes. Get This Week’s Picks Now.
On the following pages are 5 “turkey” earnings trades primed for some unadulterated put buying: