Death cross trader-Power of Death Cross

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http://www1.youreletters.com/t/461449/14573449/812617/1807/


Do You Have What It Takes?
Let me be blunt: Death Cross Trader is not for everyone.

First, this is NOT a “buy and hold” program. We make quick strikes, often taking profits in a matter of days, and possibly in a matter of hours.

So, if you’re looking for some long-term positions, I suggest you look elsewhere.

Second, Death Cross Trader exploits both overpriced stocks and the naïve investors who buy them. In most cases, you could be taking profits while your associates and neighbors are getting eaten alive.

While most folks are scratching their heads and licking their wounds, you could be chuckling all the way to the bank.

Are you ok with that? If so, I urge you to read on now. As I mentioned, our next trade recommendation is a flat-out fortune in the making.

I’ll tell you how to get in on this play in just a moment. I’ll also tell you how to reserve your six-month subscription to Death Cross Trader... free of charge.

But for now, I want to let you in on the three secrets behind Death Cross Trader’s incredible accuracy.


Secret #1: The Slingshot Power of Puts
Death Cross Trader makes money when stocks fall.

But we do it in a somewhat unique way.

You see, when it comes to falling stocks, most people think you have to “short” the stock in order to make money. (That means you “sell” the stock at a high price, take in cash for the sale, and then “buy” the stock back at a lower price.)

But I don’t like to short. I prefer to use “put options.” Why? Three reasons:

First of all, put options are easy to use. You can buy them just like you buy a stock or mutual fund.

Second, put options are much safer than short selling. Your risk is always limited and manageable.

Third, short selling limits your profits to 100%. That’s not bad. But with put options, you can make much more. In some cases, you can make 5 times your money.

And the best thing about puts? You can make huge gains even when the underlying stock only moves a small amount.

Take the trade we made on Safeway...


122% in One Month!
Back on September 8, 2006, I noticed over eager investors had pushed Safeway to a dangerously high price.

Again, the stock went up too far, too fast. I instructed readers to buy Safeway put options for 90 cents.

Sure enough the stock fell. Take a look at the chart. I’ve circled where Safeway got pushed into a danger zone.

Now, Safeway’s stock only fell 4%. And people who shorted the stock would have made about 4%. But people who followed my advice and bought put options made 122% in one month!

Bottom line: A small drop in the stock’s price resulted in quick triple-digit gains for Death Cross Traders.

Now, let me show you the second secret behind Death Cross Trader.


Secret #2: Fat Sheep Never Stop Grazing
Every week, we scan roughly 5,000 stocks looking for the most overpriced companies we can find. Of course, there are a lot of bloated companies out there. But finding an overpriced stock is only the beginning for us.

Once we spot a company that is overbought, we monitor it and wait.

Some overpriced stocks fall back to more reasonable levels very quickly.

We aren’t interested in these...

Some overpriced stocks slide sideways indefinitely.

We aren’t interested in these either...

But some stocks keep right on climbing. And climbing. And climbing!

Not only do these companies keep rising... but they do so on big trading volume.

I call this the “herd effect.” And it’s the result of naïve investors jumping on the latest hot company. When I see this happen, my mouth starts to water because I know big profits are right around the corner for Death Cross Trader.

Listen: Most investors are like sheep. They follow the herd. They see the stock soaring and they want in. They think the momentum will never stop. They think the stock will keep going up forever.

That’s what happened with Rambus, another one of Death Cross Trader’s recent winners.

Back on June 22, 2006, Rambus was on the rise. And more good news kept coming in. In fact, rumor was that a U.S. District Court was about to make a favorable ruling for Rambus.

You can imagine the euphoria Rambus fans experienced. A positive ruling!

People were piling into the stock. Problem was, Rambus was already way overpriced. But people kept piling in, pushing it higher and higher.

Rambus soon reached a price level that was absolutely ridiculous. Take a look at the chart. I’ve circled the point where Rambus had gone too far.

On June 23, I instructed readers to buy Rambus put options at $1.20.

Sure enough, Rambus fell. Take a look:

Now, the stock didn’t fall far. It went from about $23.75 to around $20. But our put options took off.

Just 5 days later, I told readers to sell our Rambus puts at $3.20. That’s 167% in less than a week!

And guess what? The situation I’m currently tracking reminds me of the Rambus trade. The stock is being pushed up by hype. It’s already in overbought territory, and yet... it keeps going higher.

Folks who get in on this play (I call it the “firecracker trade”) are probably going to make a flat-out mega-fortune.

I really hope you’ll give it a go, because if I could only recommend one trade this year... this would be the one I’d go with. No question about it.

But before I give you the details on the “firecracker trade,” I want you to understand something: There are a ton of overpriced stocks out there. But the key to Death Cross Trader’s success is knowing EXACTLY when to strike.

Let me show you how we do it...


Secret #3: The Death Cross
As I mentioned, investors are like sheep. They follow the herd. And they can never get their fill of a rising stock.

Thing is, as more and more investors rush in to a high priced stock, they send these already overpriced stocks past the point-of-no-return.

The stocks eventually reach a price level that’s impossible to sustain.

This is the point where buyers have overwhelmed sellers. There are simply not enough buyers to keep the stock going. In fact, there aren’t enough new buyers to support the stock’s price.

It can do nothing else but fall.

I call this point-of-no-return the “death cross.”

And that’s the exact moment Death Cross Trader makes its move.

We simply buy puts on the stock. When the price of the stock falls, the puts soar, and we make a bundle.

Now, how do we know when a stock has made its “death cross?”

We use a complex combination of fundamental analysis and technical indicators.

”Got in initially at 95 cents. Bought more at 55 cent for a basis of 75 cents. Sold half of the position at noon before the 4pm sell order at $1.85. Now at $2.00. What a pick! A total of 257% on the last half... Thanks. More great ones, please!!” – A.M.

Because of the proprietary nature of this system, I can’t give you the details in this letter. I've spent years developing the Death Cross indicator and I'm simply not going to give it away.

But I can tell you the results are deadly accurate.

Consider CVS...

CVS is a national drug store company with over 5,400 retail pharmacies throughout the United States. I can tell you: People love this stock.

Why? Because they see it everyday. They think just because they spend $10 a week on cough syrup and pantyhose that the company is a solid bet.

Or, they’ve read Peter Lynch’s book, One Up On Wall Street, and want to get in on a local company they can keep their eyes on.

But there’s a big difference between walking into a store to buy shampoo and understanding the company’s true financial situation.

Consequently, when a stock like CVS gets on a roll, people blindly climb on board. They want a piece of the action...

And guess what? These naïve folks drive the price up too far, too fast.

That’s exactly what happened back on September 12, 2006.

CVS had been on a run and people kept on buying. And buying. And buying!

Take a look at the chart. I’ve circled the exact point where CVS hit its “death cross:”

I instructed readers to buy CVS puts on September 12 at 95 cents. Not a moment too soon. The stock started to fall almost immediately.

On September 19, the stock had dropped from $36 to about $32 and our readers were able to take gains of 53% in 7 days.

Of course this is only one of many successful trades. In fact, since May 2006, Death Cross Trader has racked up 32 winning picks out of just 36 tries for total gains of 1,168%.

If you had put $5,000 into each trade, you could now be sitting on $250,000 with over $57,000 in pure profit!

And here’s the best part: I’ve just uncovered the next Death Cross sensation.

I must tell you, the opportunity at hand is stunning. The stock I’m tracking has just made its “death cross,” and it’s ready for a quick plunge. I fully believe that if you get in on this situation now, there’s the potential to make 2-3 times your money by New Years Day.

And if things go our way, a 10-bagger is not out of the question. Let me give you the details on this trade now...