Dear Insider, Jeff Bishop here.
I guess the market wasn’t ready to roll over and die!
SPY – the ETF that tracks the S&P 500 – had been stuck between support at $282 (the Death Line) and resistance at $294 for about a month.
And most “market experts” were calling for the market to head lower.
And why wouldn’t it?
All the headlines lately have been about inverted yields, the trade war, and a slowing worldwide economy.
But I hope you didn’t listen to any of it — I sure didn’t.
Let’s see how that played out…
Just as I expected, stocks rallied hard as soon as they breached resistance. Shorts were caught off guard and had to cover their positions… and we’ve kept going higher since.
The lesson here is pretty clear — when everyone thinks something won’t happen, it usually does.
I’m sure many traders thought betting against SPY near resistance was a “no-brainer.” I mean, look at how well the old $294 resistance level had held up the previous three attempts.
But markets usually don’t do the obvious thing. If they did, most traders would be millionaires.
Once you understand that and know how to position yourself against the herd, you’ll be a card-carrying contrarian as well.
And it isn’t just SPY signaling the market is in Party Mode.
Before September, traders feared the worst. Investors were pouring into “safe havens” like bonds and gold while selling riskier assets like small-cap stocks.
Check this chart out…
In August, bonds (blue) jumped about 12%, gold (yellow) was up 6% and small-cap stocks (red) were down about 6%.
And during this time The Volatility Index (VIX) — also known as the fear index — was up about 40% (bottom of the chart).
But since we breached resistance in early September, we’ve had a full 180:
Small-caps are booming and gold, bonds, and volatility have plummeted.
In other words, markets are partying!
Stocks might need a bit of a breather here, and I’d expect them to consolidate around the SPY $300 level before making their next move higher.
And I’ll be ready…
He’s an IPO trading expert — and when markets are in Party Mode — you can expect cash to flow into these fast-growing companies.
Even over the past 60 days, which haven’t been kind to most stocks, there have been about two dozen recent IPOs that have delivered triple-digit gains.
Obviously, you can’t just buy every IPO that hits the market and expect to make money. There’s more to it… and Ben covered it all in this interview.
Here are just a few things you missed if you didn’t attend the event:
The replay of the training session is coming down soon, so make sure you watch it now while you still can.
Enjoy your weekend!
Jeff Bishop & Jason Bond
The IPO market has been on fire in 2019…
…and with so many unicorns primed to hit the market… names like: WeWork, Peloton, Airbnb, Saudi Aramco, Casper, Robinhood, and Postmates…
You can expect plenty of fireworks… and opportunities to make a whole lot of money.
And the beauty of these IPO stocks (and recent IPOs) is that they trade in predictable patterns… that is… if you know how to spot it.
You see, every single IPO follows the same life cycle — there are three unique stages— and all three of them offer tremendous opportunity for you to cash in on the most talked-about stocks.
The weird thing is… not everyone knows about three stages and how to bank off them…
Heck, most traders are only aware of one or two ways to trade IPOs…
One of the most highly-anticipated IPOs, Lyft Inc. (LYFT), IPOed back in April… but if you look at the chart in LYFT, it doesn’t look so pretty.
Jeff Bishop recognized a clear pattern on the chart…
Turning to the options market, Jeff was able to take advantage of a predictable cycle, that LYFT’s and other IPO stocks go through… and was able to rake in nearly $17K in trading profits — in just a short period.
Heck, Jason Bond has also banked off of recent IPOs… taking advantage of the same predictable phenomenon. You’ve probably heard of the stock before — Beyond Meat Inc. (BYND).
If you look at the daily chart in BYND, it was on an absolute tear… and when Jason saw the stock in this phase — he realized he could pull in a massive winner, fast…
… and that’s exactly what he did.
Instead of trying to wrestle trading the volatile stock, he placed a strategic options bet.
And just a few days later, Jason pulled in nearly $11K in BYND.
The thing is, this is just one of the phases you can make money on during the life of an IPO…
… and you know what?
There are two other phases that you can exploit as a trader, that is if you know where to find the opportunity… most traders don’t even know they exist… but that all changes this Thursday, Sept. 12 at 8:30 PM EST.
You see, the two other phases in an IPO’s life cycle are actually the most lucrative… just think if you could’ve spotted BYND (up nearly 245% from where it opened on its IPO day) or Zoom Video Communications (ZM) (up 137% from its IPO price) BEFORE they made their massive runs…
IPO Payday can help you find massive breakout in IPOs.
This Thursday, Jason Bond, Jeff Bishop, and Ben Sturgill will sit down and unfold to you EXACTLY how to take advantage of the most lucrative trading opportunities IPO stocks.
Here’s the rundown:
With so many upcoming IPOs set to make their way to the public… the timing for the IPO Payday System couldn’t be better.
However, given the sensitive nature of the material that will be covered, this is an invite-only event. And unfortunately, we may have to close off attendance if reach seating capacity.
If you don’t sign up now, you might miss out on an opportunity of a lifetime… don’t put this off any minute longer and sign up now.
Dear Insider, Jeff Bishop here.
Markets had been relatively calm this week until the trade war ramped up on Friday.
But even with Friday’s big selloff, SPY — an ETF that tracks the S&P 500 — is still trading between the Death Line, SPY $282, and resistance at $293.
My longer-term view of the market remains bearish, but don’t be surprised if we have a run to previous highs before heading lower.
Here’s how I see it happening…
It’ll start with SPY closing above $294 — a dollar above the current resistance level. If that happens, I expect the market to spike higher, fast. Why?
Because there’s a lot of short positions open in the market right now… a move higher will force traders with open shorts to cover their positions or risk even bigger losses – causing SPY to potentially run higher.
That’s when the panic buying kicks in and markets spike higher. It’s like a short-squeeze, at the market level.
My plan is to stay nimble and hedge my bets when options trading. I’ll continue to buy puts on stocks I think will underperform and buy calls on those that should outperform.
And if you need help figuring out which stocks are likely to skyrocket or plummet, you’re in luck… Kyle has developed a proprietary scanner that lets you do just that.
On any given day, a handful of stocks make massive, double-digit moves seemingly out of nowhere.
And if you own the right option on the stock, it could easily increase a few hundred or thousand percent overnight.
It happens daily. That’s a fact. But there’s just one problem…
There are thousands of stocks out there… and there are dozens of options that you can trade on them.
How can you pinpoint which specific stock option is about to astronomically increase in value?
You see, Kyle’s latest breakthrough exposes Wall Street’s buying and selling patterns so you can profit off their activity.
He’s developed a proprietary scanner that uncovers unusual options activity.
Specifically, the scanner looks for large blocks of activity that signals “insider” or large institutional buying in the options market.
These huge positions aren’t taken by mistake. Therefore they are telling him someone on Wall Street knows something we don’t.
And often, those options go on to deliver triple- and even quadruple-digit gains… sometimes in a matter of days.
His scanner is able to reduce the universe of options from tens of thousands to just a handful with the highest likelihood of delivering a huge win.
That’s why you’re in luck… he’s just released a video that shows you exactly how to find these options yourself.
Let me give you an example of a trade Kyle’s Dollar Ace scanner recently spotted in EXEL…
Exelixis (EXEL) is a mid-cap biotech firm that focuses on cancer treatments. But what the company does isn’t really important.
What is important is that Kyle spotted some seriously unusual call option activity.
The way his scanner was lighting up, someone must have known something.
In particular, Kyle saw 2,306 EXEL September 20th 22 Calls traded for $0.35.
Well, the next day, the company backed out of a conference and buyout rumors began to fly.
That day, those calls that had been trading for $0.35 hit a high of $1.73.That’s a nearly 400% move!
The best part is that it’s not only the “insiders” that could have profited from those options. Anyone who rode their coattails could have made out just as well.
And here’s the thing, these kinds of news-driven moves will continue to happen no matter what the market it is doing. If a company might be bought out or about to have an earnings surprise to the upside, it should skyrocket higher, whether the market is up or down 1% that day.
Obviously, there’s a lot more to learn about the scanner and how to implement it in your own trading. But I’m going to leave it there for now since you can get the details in this brand-new video.
Jeff Bishop & Jason Bond