Looking for a Threepeat (GLD, BIDU, SLV, GS, VIX)

A couple of dandy trades to report on today, so let’s not waste any time. Put on your sneakers and get rolling! We lead off with an effort launched on the 23rd of September, in a letter called Silver and Gold(man). We were trading two completely divergent sectors with this one – precious metals and financials. Our thinking was as follows – “… we’re pairing the two not because there’s some sort of inter-market relationship that obtains between their respective sectors, but because one looks toppy and in need of a trim, while the other appears to have bottomed.” No magic there. A straightforward overbought/oversold pairing with the iShares Silver Trust (NYSE:SLV) and Goldman Sachs…

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Making a Quick Killing (PM, MO, BJRI)

Good tidings to all our readers and friends, and especially to our latest batch of new subscribers at the Shao-Lin monastery in Henan province, China. May the Hunter always assist you in snagging your prey! Down to business!   We’ve got three trades to examine and/or close today, so tighten your belts, sharpen your pencils and place all combustibles out of the reach of children. Indeed, downright explosive results we have to report from our September 30th initiative. It was a letter called How to Profit as America Goes to Hell, and in it we offered a delectable trade on the restaurant business. After offering you demographic proof that the high-end fast-food eatery business was…

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Light it up with a Match! (DXY, PM, MO)

With the dollar rising as strongly as it has for as long as it has, there naturally arises a fear that corporate profits will soon feel the pinch. And so it will be. Just as day follows night, overseas consumers will ultimately realize American products are becoming more expensive in their own currencies, and they’ll seek cheaper alternatives. The process doesn’t happen overnight, of course, and corporations inevitably develop strategies to cope with these eventualities over the short term. But the end result of an unconstrained rise in the dollar is ultimately a crimp in corporate profits. And that’s a big part of what’s scaring markets these days. First, have a look at the buck…

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Biding Time ‘til the Pause is Over (FXI, BIDU)

There have been a number of interesting developments over the last few weeks in the global equity arena, and understanding them will better help us to initiate this week’s trade. But first a little background. There’s an increasingly nervous feeling pervading global markets in the lead-up to November’s U.S. congressional elections, and until there’s some certainty of what sort of outcomes we’ll have, markets will likely remain jittery. Because what stocks least like is uncertainty, and trying to figure out what policy changes, if any, will be in the offing once November’s numbers are finally tallied has a number of bourses wondering where they stand. Questions…   Will a flagging president give over the Senate…

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How to Profit as America Goes to Hell (BJRI)

Spotting new trends is not always difficult. It does require an open mind and enough time to read, a knack for discerning the new and useless from the new and lasting, a willingness to step out on a limb, make your case, take some heat, readjust and hopefully weather the crucible. But that’s just half the game when the goal is to profit from trend spotting. Parlaying an understanding of which way the wind is blowing into cold, hard cash is a separate exercise altogether. And getting the timing right is also a challenge. As many have learned the hard way, buying the right company years before it starts making waves is not a great…

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Silver and Gold(man) (SLV, GLD)

Some folk are born without hair but eventually develop a crop that covers their bodies in the traditional manner. Others are born bald and baby-like and never see much growth for the full span of their lives. And we’re left to wonder – why is it the measure of a man’s hair should vary so greatly? Moreover, of what import is it to us as investors? And why do we take the time to write of it here in our weekly Profit Hunter missive? The truth is manifold, friends, and it’s not for nothing that we do a little hair-raising today. Faith, we say. And read on. We’ve got some explaining to do. Let’s back…

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Short Term/Long Term on Europe (EWG, USO, UNG, GLD)

Sometimes we put on a trade that takes us months, if not a year or more to cash in on. And sometimes it happens immediately. We usually aim to be open and shut anywhere between one to three months from initiating, but as with life itself, there are always surprises. And so it is this week, as we plan to cash in on two trades that we initiated in just the last fortnight. Or, to be more precise, one and a half trades. Great hair. Let us explain. Trade #1 Two weeks ago in a letter called Strangling the Energy Market we urged you to sell strangles on both the United States Oil Fund ETF…

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Profiting Thrice in Champagne & Ice (GLD, FAS, UUP)

Today’s letter is going to touch upon several major investment trends that we’ve been discussing here for years. And they are – • Dollar strength… • Precious metals (and overall commodity) weakness, and… • A financial sector that will lead the broader equity indexes higher. Along the way, we’re also going to close out some trades and open a new one. So let’s start with the dollar. Top Dollar Back in mid-January of this year we made a decision to hold on to our stock in the PowerShares DB US Dollar Index Bullish Fund (NYSE:UUP), a proxy for the U.S. Dollar Index, after it was PUT to us in a losing options trade. The letter…

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Strangling the Energy Market (UNG, USO, DBC)

One of the most profound moves in the market of late is also one that almost no one is talking about. It has taken a back seat to a news cycle that’s all-out hairy with terror stories and war stories and potential war stories, so it’s not a surprise, really. That, coupled with the new highs that the major indexes are posting on a near daily basis, and is it any wonder no one cares or has time to look under the hood and see that the commodities have been chewed up like Robert Shaw in the movie Jaws. We’ll have a look at the commodities chart in a moment, but for now you should…

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Russian Bear Turns Bull (UNG, RSX)?

There are a lot of folks out there who trade stocks with an eye to geopolitical developments. They’re the people who know that India and Pakistan have just upped the ante in their cross border battle over Jammu and Kashmir, with varying reports of up to 20 people dead and/or injured over the weekend. They’re the ones who’ll tell you that Israel is now considering a full-scale ground invasion of Gaza to halt the rocket fire on its southern cities, and that Russia is on the verge of a genuine recapture of the Ukrainian breadbasket it lost with the disintegration of the U.S.S.R. These are the same folks who know that America is on the…

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