Rumors of a coming recession abound, with doom and gloom dominating the headlines.
And while we can’t know whether a recession is coming for sure, it’s on just about everyone’s minds right now and it never hurts to be prepared…
That’s why I just held a special presentation — at no cost! — to share how my Alpha Rotation strategy can not only help your portfolio survive during troubled times, but potentially help you thrive during the good times!
For those of you who aren’t members of Alpha Rotation, the first thing you need to know is that there are 11 major sectors in the S&P 500…
Money is constantly flowing out of some sectors and into others. This is what we call a “sector rotation.”
And while this ebb and flow is constant, there are events that will kick it into overdrive...
For example, as tensions rose at the border between Russia and Ukraine, I started to consider the potential impact this conflict would have on energy prices.
After all, Russia was responsible for about 20% of the United States’ imported gas products. Even before the war began and sanctions were imposed on Russia, the fact remained that any conflict would impact supply.
The system added exposure to the Energy Select Sector SPDR Fund (NYSE: XLE), and over the three months from January 2022 through March 2022, XLE soared more than 40% while the S&P 500 fell nearly 5%.
XLE was part of our rotation strategy during all three months, and it was often our best-performing trade...
On Feb. 23, we bought the XLE June $68 strike calls for $4.75. By March 9, those calls more than doubled, jumping to $9.85 and helping us lock in a 107% gain!*
To make sure you have the full picture for how this strategy performs, from Jan. 3, 2017, through July 6, 2022, Alpha Rotation has a 54% win rate with an average return of 6.64% in an average hold time of 14 days.
Now, while hunting down the sectors gaining momentum, this strategy also identifies sectors that are losing strength.
And therein lies the beauty of Alpha Rotation. Because not only does the system go long the strongest sectors, but it also bets against the weakest as a hedge to our portfolio. This adds an important level of protection during market downturns.
So we look for the sectors that are underperforming with the expectation that they’ll continue to underperform.
And our hedges have been some of our strongest trades lately... The Communication Services Select Sector SPDR Fund (NYSE: XLC), for example, lagged the broader market for months on end.
On May 4, we took a position in the XLC Sept. monthly expiration, $60 strike puts at $2.95 as part of our rotation. Over the following two weeks, those puts rose to $4.90, allowing us to lock in a solid 66% gain* as XLC continued to break down.
And it’s critical that everyone understands this strategy right now…
Events like the war in Ukraine will continue to influence sector rotation, but the things affecting average Americans the most right now are more pressing concerns, namely inflation — which puts even more pressure on gas and energy prices — and the Federal Reserve’s policy and interest rate hikes.
All of these events are creating the perfect storm. And that’s why now — more than ever — it’s a good idea to have a hedge in portfolios.
That’s why you should watch this special LIVE training session. I show you exactly how I use this strategy, as well as my favorite way to catch a sector rotation before it happens! And there’s no charge to attend!
No one knows for sure which way things will move next. And anyone that tells you otherwise is lying.
That’s why it’s critical to use strategies that have the opportunity to do well — regardless of which direction the market moves. And that’s why I’ve baked it into a strategy that I just shared LIVE, at no cost!
*Stated results are atypical for given period. Past performance is not indicative of any future results. Trade at your own risk.
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