With the market suffering its first pullback since the Brexit vote on June 23, and volatility in the market spiking to levels not seen since then, I am going to hold off on recommending a new Alpha Algorithm position today.
Nevertheless, I want to highlight that two previous positions you exited with about 10% gains each — Johnson & Johnson (JNJ) and Facebook, Inc. (FB) — both continue to be featured prominently in the Alpha Algorithm.
JNJ currently features in 13 Alpha Algorithm strategies and FB is present in 11, making them the two most popular stocks in the system.
That means that these two stocks are at the top of the list for potential re-entry once the market settles.
I plan to have a new Alpha Algorithm recommendation next week.
You stopped out of Facebook. Inc. (FB) on Sept. 8 at $129.90 for a 10.05% gain.
Recall that I recommended three speculative bearish bets on the market through Amazon (AMZN) October $755 puts (AMZN161021P00755000), Visa (V) October $77.50 puts (V161021P00077500) and Microsoft (MSFT) October $55 puts (MSFT161021P00055000).
Remember, as put options, these positions are designed to rise when the price of the stocks goes down.
As of yesterday’s market close, the Microsoft put options are “in the money” with a 16.36% gain.
Today, I am recommending that you sell all of your Microsoft (MSFT) October $55 puts (MSFT161021P00055000) for short-term double-digit percentage gains.
Nicholas A. Vardy