Brad’s Note: My expertise is in dividend-growth stocks and companies that will grow your portfolio safely over the long term.
But my colleague Larry Benedict is a 35-year trading veteran who has made it his profession to find the best short-term trades in the market.
And he has the track record to prove that his trading insights are worth listening to…
Over his decades on Wall Street, he ran an $800 million hedge fund, regularly traded position sizes in the millions of dollars, and he even went 20 years without a single losing year… putting his hedge fund in the top 1% of Barron’s rankings.
And now, he’s bringing his trading strategy to average investors.
Since last January, he’s picked 89 winning trades. That’s among volatile swings when the stock market turned bearish. And remarkably, 64 of those trades have delivered 100% returns or higher.
That’s why I’m sending you this special edition of Intelligent Income Daily.
Today, Larry is playing the volatility of the market on what he calls “money shock” dates. Read on to hear about the next one that is coming in early March…
While I don’t recommend this opportunity for everyone focused on mitigating as much risk as possible, those who have money set aside to speculate might find this as a great opportunity.
There are 32 days in the year that matter to traders.
These are special days when it’s possible to get outsized returns on your money. That’s why I call these days “money shocks.”
And they exist even in bear markets.
In fact, I first noticed this pattern during extreme conditions… right as the 2008 Great Financial Crisis was playing out.
Many of us remember how it went…
The housing bubble collapsed, and the financial sector was left holding the bag. That led to the collapse of Bear Stearns and Lehman Brothers… along with more than 500 other banks. The government stepped in to prop up Fannie Mae and Freddie Mac and “bail out” the big banks.
Put simply, it was a mess… And over 16 months, the markets fell roughly 50%.
But if you knew where to look, there were certain days when savvy traders could make serious money.
I was still working at my hedge fund, Banyan Capital, during that period. On one of these days, my firm made $4.2 million net profit. On another, we generated $6.1 million. On a third occasion, it was over $8 million.
Now, to achieve these returns, we were handling more money than the average trader has.
But there’s nothing to stop regular people from taking advantage of these opportunities too…
In fact, I’ve made over 89 winning trades on these “money shock” days in my current trading advisories… just since January 2022.
So today, I’d like to explain how…
Sensitive Data
Most people tune out things like government data and statistics. By and large, it’s boring and technical.
And unless you have a particular reason you need to know a stat, few of us have reason to dig into the often clunky websites where they’re kept.
But for traders, it would be a huge mistake to ignore certain key numbers.
In fact, the 32 days I mentioned earlier refer to times when the government releases valuable pieces of information… like inflation data or interest rate changes.
Because those reports send market action up by as much as 20X.
Volume and volatility are critical components to trading. Increased volume and volatility = greater potential to make more money quickly.
And during these “shocks,” the federal government makes it even easier to generate incredible returns.
This is where I thrive.
In these kinds of moments, everyone thinks they have a genius prediction for where they expect the economy to go. So more people place their bets – often with undue risk – and send prices flying up and down.
Now, a lot of those same people lose money.
But when you know how to play it, you can make solid wins. We had an example just this month…
Playing the FOMC Announcement
On January 27, we entered a trade leading into a “money shock” event – the upcoming FOMC announcement just days away. In short, the market was waiting on tenterhooks to see how much the Fed was going to raise rates.
So we made a bet on the iShares 20 Plus Year Treasury Bond ETF (TLT). Bond yields were struggling to rise and had rejected the 3.7% level five times in a month.
But we saw the potential for a continued short-term TLT rally and knew that the Fed would only raise by 25 bps… less than many were anticipating.
That would give us another leg down in Treasurys and set up a great profit taking opportunity… and that’s exactly what happened.
Rising Fed rates generally lift Treasury rates – unless it’s priced in what the Fed will do or they raise less than expected. So for TLT to rally, we wanted to see the Fed’s interest rates come in lower than expected.
(It’s a little counterintuitive, but remember, when an existing bond has a lower coupon than current rates, investors may find it less appealing, and its market price drops.)
At the time, many still feared that the Fed would raise rates by another 50 basis points (bps). But since they increased by just 25 basis points, that “lower” rate sent our TLT position well into the green.
We sold on February 1 right after the Fed’s announcement for a quick 30% gain.
But ultimately, it didn’t really matter whether the Fed raised rates a little or lot… The announcement alone was the important thing.
Because these kinds of events give the markets an electric shock… and stir up volatility that traders like us are more than happy to use.
And while a 30% might not sound like much, trades like these can start to snowball your account quickly. Not to mention, we reached that gain in less than a week.
That’s the power that these money shock days can give us.
Pay Attention to “Money Shocks”
These “money shocks” are a big tool for the traders who know how to use them.
I’ve been trading these events ever since 2008 and experienced their potential firsthand.
And now I want to show traders how to up their game and do the same.
That’s why I’m planning my “Money Shock Calendar” event on February 22 this month.
We have 32 key dates coming up this year… including one that’s just a few weeks away.
So please, tune in on February 22 to learn more about how to trade these events. Traders using this “money shock” calendar will almost certainly outpace anyone who ignores all these dates…
And in a topsy-turvy environment like we’re in now, we all need an edge to make the most of our capital.
To attend, simply sign up with one click by going right here.
Regards,
Larry Benedict
Editor, Trading With Larry Benedict