The easiest trades are the ones done using magical powers of illusion. For example: buying into natural gas or refinery stocks ahead of a giant hurricane; or, into rumors of war, buying into munitions stocks can prove to be profitable. How about buying into biotech stocks ahead of ASCO or tech names prior to CES?
Has anyone ever bought into chicken wing stocks ahead of March Madness and profited from it? I have.
When was the last time you bought PII ahead of the winter ski season? Last year, short sellers made a killing on DECK, because the winter was mild. Due to the hot as shit summer, corn and ag plays have done superb, while chicken and beef stocks languished.
Going into the Presidential elections, there are many opportunities to make money off perception. The perception of a Romney win will make consumer discretionary stocks rise, as well as oil and anything that can benefit from a friendlier EPA. Case and point: NAK.
As you can see from the news clipping above, the EPA doesn’t want NAK to mine in the 3rd largest copper/gold property in the world because it might harm the watershed. Due to the EPA, NAK’s stock price has been crushed to drill-bits, down from $20 to $2. Providing Romney wins the election, it’s entirely possible that NAK will be granted permission from a business friendly EPA, no?
The illusion of a friendly EPA will make the stock soar, well before an actual decision can be made.
If Obama gets reelected, I believe healthcare stocks will rise. I know it sounds counter-intutitive, but BIG government in healthcare equals BIG profits for healthcare companies, like ABC, MCK and ESRX. Last election, stem cell stocks doubled days before Obama’s victory. It’s worth noting, the FDA has been lenient under the Obama administration and has been reflected in massive share gains in biotech stocks.
In short, now is the time to place your bets, BEFORE the media starts hyping poll data. Keep in mind, the ax swings both ways and it swings low–low enough to cut off your cocks if you’re not careful.
15 Responses to Making Money Through Illusion
Locked in some gains and raised 15% cash on Friday looking for any pullback.
Excellent post. Thanks for sharing insight.
Romney hasn’t got a chance since Clinton neutered him last week with his “arithmetic” and “double down for trickle down” speech at the DNC.
LOL. Dems speaking of “arithmetic” and even basic math is akin to monkeys discussing astrophysics.
IOW, if Obama didn’t have the dope vote, he’d have no vote at all.
last guy to have a budget surplus …
and how do you have two wars, an increase in medicare benefits and still cut taxes … Deficits dont matter until you are out of the white house and looking in …
OEW Weekend Update:
” The internal structure of the current rally, Minor wave 5, may be a bit difficult to read. Currently we see a rally to SPX 1409, a pullback (1401-1409-1401), then a gap up to 1412 and a rally straight up to 1438. We are counting the first rally to SPX 1409 as Minute i, the flat pullback to 1401 as Minute ii, and Minute iii currently underway. This suggests we should see a Minute wave iv pullback soon, then another rally to end Minute v. This last rally will also end Minor wave 5 and Intermediate wave iii. In both EW and OEW waves cluster within waves.”
“We did some fibonacci calculations after Minor wave 5 was underway and posted them during the week. At SPX 1463 Minor 5 = Minor 1, and at SPX 1464 Int. iii = 1.618 Int. i. Once the OEW 1440 pivot range (1433-1447) is cleared, (this pivot may likely be resistance for Minute iii), this rally should find significant resistance at the SPX 1463/64 area.”
So … a small pullback from 1440 followed by a rally to 1464 completing intermediate3. Then a pullback for intermediate4 and completion of Major Wave3 and Intermediate Wave5 somewhere around 1500 by year end ….
A good correction in Major Wave4 (winter/spring) followed by the final wave up (Major Wave5) ending late summer or early fall (Sept?).
Daaamn, im missing out, shitigroup above 32 lol. up we go! The scenery in positano is unbelievable, in more than one way. Theres a shop next to our hotel called “da vincenzo”, no joke.
Another view is if the ax swings high and out enough it will cause serious damage to the man zone.
My last “blog” is to be read only by pro-0bama supporters…I realize that will give me a lower than average total viewers but something needed to be said.
Where is it?
Oh, hm. I had the perception Romney was all about the Health Care industry with his Governorship and the whole RomenyCare thing…
..and as far as Democratic perceptions, a win for 0 is a win for the energy industry. Green, Clean-coal, that scene is all the same, and a vote for an industry does not even apply anymore, unless you rely on the news for your background information.
It’s like bi-partisanship on crack; lying, cheating, stealing, to keep lawmakers in line. Then we get the trickle-down effect, gains or losses.
Last election was about the left getting theirs in the energy industry. This tape’s cycle’s analogy is about the right getting theirs in the health industry.
How do you feel about the Cannabis Industry and Obama’s second term? Seems to be an issue that is evading reality right now.