Five Reasons to Day-Trade with a Signal

Five reasons to day-trade with a signal could put people on a profitable path if they are prepared to pursue a new approach.

An advisory service called DayTradeSpy Signal uses indicators to provide its subscribers with an average of three to five trade recommendations each week. In March 2024 alone, DayTradeSpy Signal racked up 16 profitable trades among its total of 17, attaining a 94.12% success rate.

“We’re going to have to do something about that one trade that got away,” said Hugh Grossman, a seasoned options trader and trainer who founded DayTradeSpy Signal, the Ultimate Training Workshop, the DayTradeSpy Trading Room and the Pick of the Day advisory services.

Five Reasons to Day-Trade with a Signal: 1. 85%-Plus Profitable Trades

Since the DayTradeSpy Signal launched operation in November 2023, the option trading advisory service has turned profits in 59 of its 69 trade recommendations, or an 85.5% win rate as of April 8.

“The way it works is simple enough,” Grossman said. “As a subscriber, you would receive an alert via cell phone text and email. As soon as you are notified, immediately make your purchase. Buy the suggested option, using a limit order for the ask price, within the next two minutes.

“As soon as you buy it, immediately put it up for sale for a 5% gain. In the unlikely event that it did not sell by the end of the day, sell it for the market price on close. Should that happen, you would never drop to zero as these trades do have time built into them.”

In the case of the only losing trade in March 2024, the option did not reach the 5% profit goal by the end of the day. To adhere to the DayTradeSpy Signal strategy of closing each trade before day’s end, the order to sell the position at the market price led to a loss of about 15%.

Virtually all the trades recommended in DayTradeSpy Signal involve options of the SPDR S&P 500 ETF Trust (SPY), the largest and first U.S.-listed exchange-traded fund (ETF).

Five Reasons to Day-Trade with a Signal: 2. ‘Excellent Strategy’

Statistically, DayTradeSpy Signal has proven to be an “excellent strategy,” Grossman said. The advisory service provides three to five algorithm-driven trades per week, he added.

The target is at least a 5% profit on each trade, Grossman told me.

“Some traders make much more than that,” Grossman said.

Five Reasons to Day-Trade with a Signal: 3. Analysis Provided

This is an “ideal strategy” for those unable or unwilling to do the analysis themselves, Grossman continued.

“Many of our busy subscribers like this program, as it provides the work for them; they just have to follow through,” Grossman said. “You get three to five alerts a week, generally in the morning.”

All the March 2024 trades are detailed in the table below. Even though DayTradeSpy Signal has an 85%-plus success rate thus far, Grossman mentioned that options trading is risky and does require a certain amount of analysis.

16 of 17 Signal Trades in March 2024 Ended Profitably

Source: Hugh Grossman

Five Reasons to Day-Trade with a Signal: 4. Proven Formula

DayTradeSpy Signal advises its subscribers whether to pursue each trade, the market direction and strength, which option to trade and how to trade it. The DayTradeSpy Signal does the heavy lifting for its subscribers, Grossman said. Simply buy the recommended option, put it up for sale and come back later to reap their rewards or cut bait, he added.

“As for the loss, it was sold at the end of the day, according to the plan to trade this system,” Grossman said. “If it doesn’t reach its 5% target, it is to be dumped at the market close at market value. The ‘algo’ kicked in but just couldn’t reach the targeted price. That final day, SPY decided to take a ride to the upside at about 2:45 p.m., only to collapse just minutes from the end, but just not enough to take profit on the puts.

“Some days, you’re the dog,” Grossman told me. “Other days, you’re the hydrant.”

Hugh Grossman leads DayTradeSpy Signal, Trading Room and Ultimate Training Workshop.

Five Reasons to Day-Trade with a Signal: 5. Protection from Crises

Short-term trades of just minutes or hours in a single day limit the fallout from crises like wars and natural disasters. Long-term investors face those perils but day-traders are insulated from the worst effects of those calamities.

J. P. Morgan Chase Chairman and Chief Executive Officer Jamie Dimon warned that “significant challenges” across the globe in 2023 are carrying over into 2024 and could worsen. In a J. P. Morgan shareholders’ letter, Dimon wrote that the terrible ongoing war and violence in the Middle East and Ukraine, mounting terrorist activity and growing geopolitical tensions, especially with China, pose threats to investors and others.

“Almost all nations felt the effects last year of global economic uncertainty, including higher energy and food prices, inflation rates and volatile markets,” Dimon wrote. “While all these events and associated instability have serious ramifications on our company, colleagues, clients and countries where we do business, their consequences on the world at large — with the extreme suffering of the Ukrainian people, escalating tragedy in the Middle East and the potential restructuring of the global order — are far more important.”

Jamie Dimon, chairman and CEO of JP Morgan Chase.

America’s Global Leadership Role Under Threat, JP Morgan Chase CEO Cautions

 “America’s global leadership role is being challenged outside by other nations and inside by our polarized electorate,” Dimon wrote in his letter to JP Morgan Chase’s shareholders. “We need to find ways to put aside our differences and work in partnership with other Western nations in the name of democracy. During this time of great crises, uniting to protect our essential freedoms, including free enterprise, is paramount.”

America, “conceived in liberty and dedicated to the proposition that all men are created equal,” serves as a shining beacon of hope to citizens around the world, Dimon wrote. JPMorgan Chase, a company that historically has worked across borders and boundaries, will do its part to ensure that the global economy is safe and secure, he continued.

Despite an “unsettling landscape,” including last year’s regional bank turmoil, the U.S. economy continues to be resilient, with consumers still spending, and the markets expecting a soft landing, Dimon wrote. However, the economy is fueled by large amounts of government deficit spending and past stimulus, he added.

“There is also a growing need for increased spending as we continue transitioning to a greener economy, restructuring global supply chains, boosting military expenditure and battling rising health care costs,” Dimon wrote. “This may lead to stickier inflation and higher rates than markets expect. Furthermore, there are downside risks to watch. Quantitative tightening is draining more than $900 billion in liquidity from the system annually — and we have never truly experienced the full effect of quantitative tightening on this scale.”

The “ongoing wars” in Ukraine and the Middle East have the potential to disrupt energy and food markets, migration, military and economic relationships, in addition to their dreadful human cost, Dimon wrote. These significant and somewhat unprecedented forces warrant caution, he added.

Solar Eclipse Could Be Prelude to Covering up Economy Resiliency

The eclipse of the sun that occurred above much of the United States on Monday, April 8, may be symbolic of a gradual covering up of President Biden resilient economy later this year, wrote Mark Skousen, PhD, who heads the Forecasts & Strategies investment newsletter.

The U.S. Bureau of Economic Analysis (BEA) recently released its third estimate of real gross domestic product (GDP) growth at a 3.4% annual rate for the final quarter of 2023, as well as 2.5% for the full year. But BEA  also reported gross output (GO), which is a much broader measure of total economic activity, including the all-important supply chain, which showed an economic slowdown, said Skousen, who also is a Presidential Fellow in economics at Chapman University.

Mark Skousen, head of Forecasts & Strategies, meets with Paul Dykewicz.

“Real GO was a full percentage point below gross domestic product in the fourth quarter, 2.4%,” Skousen reported.

“Worse, business-to-business spending actually fell slightly, by 0.3%… and has been virtually flat since the start of 2022, as this chart shows,” Skousen wrote.

“GO and business spending are leading indicators, suggesting a slowdown and perhaps even a recession in 2024,” Skousen cautioned. Click here to read Skousen’s op-ed about GO and the risk of a recession in the March 5 edition of the Wall Street Journal.

Geopolitical Risk Rises With Death of Aid Workers and Gaza Civilians

Israel’s efforts to find and destroy an extensive tunnel system in neighboring Gaza that has been used to stockpile weapons, as well as hide the leaders and Hamas militants who were responsible for the Oct. 7 attack that killed an estimated 1,200 people and took 240 hostages, have caused a heavy loss of life. The Gaza Ministry of Health estimates that a total of more than 33,000 Hamas fighters and civilians have lost their lives there since the war began Oct. 7, but this week’s death toll includes seven World Central Kitchen aid providers who perished when the three vehicles that they were using to distribute food were fired upon by Israel Defense Forces (IDFs) who reportedly mistook them for hostile militants.

Chef José Andrés, World Central Kitchen’s leader, called for an independent investigation and said the three-vehicle convoy was clearly marked with a sign of his charity, which reported its planned movements to the IDF in advance. The IDF announced that two senior officers had been dismissed as a result of its probe of the World Central Kitchen incident.

U.S. President Joe Biden spoke by phone with Israel’s Prime Minister Benjamin Netanyahu to warn that future U.S. assistance to Israel will depend on how humanitarian interests are addressed in Gaza moving forward. Biden added that he was “outraged and heart broken” by the deaths of the World Central Kitchen aid workers.

The number of injured people from the war in Gaza is estimated by its Ministry of Health to reach 75,600 people. Israeli military officials reported that at least 256 of its soldiers have been killed since they entered Gaza to try to free an estimated 100 hostages who remain alive. Hamas or other Palestinian militants hold the remains of 30 people who reportedly were killed during and after the Oct. 7 raid of Israeli communities near its border with Gaza.

In another international hot spot, Russia’s military forces are advancing in eastern Ukraine after capturing the key town of Avdiivka in February. Ukraine’s soldiers are trying to hold their ground, amid long-term shortages of artillery shells with the U.S. Congress unable to agree upon giving additional assistance.

The use of SPY options in the DayTradeSpy Signal advisory service offers an alternative to traditional stock investing, especially if a recession arises and geopolitical risk worsens.

Paul Dykewicz, www.pauldykewicz.com, is an accomplished, award-winning journalist who has written for Dow Jones, the Wall Street Journal, Investor’s Business Daily, USA Today, the Journal of Commerce, Seeking Alpha, Guru Focus and other publications and websites. Paul, who can be followed on Twitter @PaulDykewicz, is the editor of StockInvestor.com and DividendInvestor.com, a writer for both websites and a columnist. He further is editorial director of Eagle Financial Publications in Washington, D.C., where he edits monthly investment newsletters, time-sensitive trading alerts, free e-letters and other investment reports. Paul previously served as business editor of Baltimore’s Daily Record newspaper. Special Sale! Paul is the author of an inspirational book, “Holy Smokes! Golden Guidance from Notre Dame’s Championship Chaplain,” with a foreword by former national championship-winning football coach Lou Holtz. The uplifting book is great gift and is endorsed by Joe Montana, Joe Theismann, Ara Parseghian, “Rocket” Ismail, Reggie Brooks, Dick Vitale and many others. Call 202-677-4457 for reduced pricing on multiple-book purchases.