While I cannot guarantee future profits or shield against losses, I will be revealing the ins and outs of this system for the first time ever this Monday!
With hurricane season nearing, it’s time to consider storm-prep stocks, we said in late April.
We added, according to The Weather Channel, the 2024 hurricane season could be one of the most active on record. “The outlook issued on Thursday calls for 24 named storms, 11 of which will become hurricanes and six of which will reach Category 3 status or stronger,” they noted. “That’s well above the 30-year average tally for both hurricanes and storms, and also markedly above the tally of 20 storms, seven hurricanes and three Cat 3-plus hurricanes in 2023.”
Along with it, we highlighted stocks, like Generac Holdings (GNCR), which ran from $127.50 to a high of $155 after that mention. Even Xylem (XYL) popped from $130 to $145.
Both could push even higher. All thanks to worsening hurricane season forecasts.
Most recently, the National Oceanic and Atmospheric Administration called for a more active than normal season — thanks in large part to the off-the-charts high temperatures in the Atlantic Ocean, as noted by the Miami Herald.
“NOAA is predicting that 17 to 25 named storms could form this year, with eight to 13 powering up into hurricanes and four to seven of those reaching major hurricane status, Category 3 or higher. That’s above the average: 14 named storms, 7 hurricanes and 3 major hurricanes.”
I have been in the investment business for a long enough time to witness all the fads and market concepts that are imaginable. The era of corporate takeovers was a thrill for me. Fortunately, the supply-demand models I had created were installed and were being successfully used prior to the advent of this period. Initially, my work would alert me to those situations in which aggressive buying was taking place. Most technicians are parasites and require no fundamental justification for their market activities, so I assumed that positive fundamental developments had precipitated this demand. I was soon to learn that a pattern had developed that correctly predicted pending buy-outs. At last count, between 1978 and 1982, more than 32 acquisitions were correctly forecasted. I even had the gall to notify corporate presidents and announce that their companies were being acquired. In fact, I was described by one journalist as the “grim reaper.”
My goal here was to share information I acquired from experience to further validate acquisition candidates. Having played basketball, I was never satisfied with the easy lay-up. When I was put in a lay-up situation, I often passed the ball or made an effort to score with a more difficult shot. The same strategy applied to inside information and potential buy-outs. Not only did I prefer to make the process a challenge but I also was confident that by the time pending rumors of buy-outs were widespread and nothing was announced formally, the rumors were more than likely bogus. I tried to explain this to others, but they were unwilling to listen. I did much research to convince them with logic and with examples.
In the early 1970s, there were occasional buy-out rumors. Most legitimate instances demonstrated a similar pattern. I noticed that a surge in price volume was followed by a respite period of typically just over six months. I came to respect this pattern; under the tax laws at that time, long-term capital gains required a holding period of six months. Furthermore, the governmental agencies were not actively involved in prosecuting traders for insider activity.
The first profit opportunity we will review is in SLV, or the iShares Silver Trust. SLV strives for the value of the SLV ETF to reflect, at any given time, the price of silver owned by the trust at that time.
In addition to the recent in Buy Signal, SLV recently hit a new 4-year high. A new multi-year high is a positive sign for the bulls.
The daily chart shows that SLV has been forming a bullish pattern of higher highs and higher lows since February. The bullish pattern points to a further advance.
We recommend buying SLV stock at the current price level.
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