Why Bears Will Enjoy “Best in Breed” Profits This Month

Original post

The “September slide” this week has been excellent for my paid-up subscribers – even some positions that had been sluggish moved higher – because we were well prepared for stocks to gap lower.

We closed out two more winners in Western Digital Corp. (Nasdaq: WDC) puts, and on the “other side” of the market, DSW Inc. (NYSE: DSW) calls for a nice 174% and 78% in gains.

Those results certainly show how our proven “Best in Breed” (BIB) stock-picking methodology works hand in hand with portfolio balance. A mix of calls, puts, bullishness, and bearishness has helped us capitalize on the market’s recent swings.

Right now, BIB is showing retailers as an area of strength for the next couple of months, which is why I’ve been so bullish on them here in Money Morning recently – just look at our DSW position.

Meanwhile, BIB bull’s-eyed the technology sector as a laggard, and sure enough, it’s no longer leading the market higher. Puts in WDC yielded a huge profit. And our other bearish plays in the sector are bouncing back in our favor.

Now let’s take a look at what the market’s showing us for the next four weeks or so…

Join the conversation. Click here to jump to comments…

About the Author

Chris Johnson is a quant – he’s obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he’s been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains – entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.

Chris also contributes to Money Morning as the Quant Analysis Specialist.

Read full bio