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Dear Friend,
This week is an unusual one for the Idea of the Week. For the second week in a row, this newsletter supplies a link to that report. (My apologies if you came on board because of the earlier article.
Enjoy the report, and the report inside the article which documents every trade we made in an actual portfolio that gained us 452% after commissions in six weeks this summer.
Terry
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| Option Tip of the Week |
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A Calendar Spread Strategy to Capitalize on Apple's Expected Announcement Next Wednesday
Here’s the link – A Calendar Spread Strategy
To accommodate those folks who signed up for our free newsletter after Labor Day because of the Seeking Alpha article, we are extending the special offer we made last week for an extra week.
The Special Offer – To Celebrate the re-establishment of Auto-Trade at TD Ameritrade/thinkorswim, we are offering our Premium service at the lowest price in the history of our company. We have never before offered such a large discount for the Premium Service. If you ever considered becoming a Terry’s Tips Insider, this would be the absolute best time to do it.
And now for the Special Offer – If you make this investment in yourself by midnight, September 11, 2012, this is what happens:
1) For a one-time fee of only $75.95, you receive the White Paper (which normally costs $79.95 by itself), which explains my favorite option strategies in detail, , 20 “Lazy Way” companies with a minimum 100% gain in 2 years, mathematically guaranteed, if the stock stays flat or goes up, plus the following services:
2) Two free months of the Terry’s Tips Stock Options Tutorial Program, (a $49.90 value). This consists of 14 individual electronic tutorials delivered one each day for two weeks, and weekly Saturday Reports which provide timely Market Reports, discussion of option strategies, updates and commentaries on 8 different actual option portfolios, and much more.
3) Emailed Trade Alerts. I will email you with any trades I make before I make them so you can mirror them yourself or have them executed for you by TD Ameritrade/thinkorswim through their Auto-Trade program. These Trade Alerts cover all 8 portfolios we conduct.
4) Access to the Insider’s Section of Terry’s Tips, where you will find many valuable articles about option trading, and several months of recent Saturday Reports and Trade Alerts.
5) A free copy of my e-book, Making 36%: Duffer’s Guide to Breaking Par in the Market Every Year, In Good Years and Bad (2012 Updated Version).
With this one-time offer, you will receive all of these Premium Service benefits for only $75.95, (normal price $119.95). I have never made an offer anything like this in the eleven years I have published Terry’s Tips. But you must order by midnight on September 11, 2012. Click here and enter Special Code Auto12 in the box located on the right side of your screen.
I feel confident that this offer could be the best investment you ever make in yourself. Celebrate the resumption of Auto-Trade at TD Ameritrade/thinkorswim with us. But do it before the September 11th, as this offer will not be available after that day.
I look forward to prospering with you.
Terry
P.S. If you would have any questions about this offer or Terry’s Tips, please call Seth Allen, our Senior Vice President at 800-803-4595. Or make this investment in yourself at the lowest price ever offered in our 11 years of publication – only $75.95 for our entire package (regular price $119.95). Click here and use Special Code Auto12.
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| Andy's Market Report |
It finally happened.
The market finally broke out of one of the tightest range-bound markets in history.
And what a Draghi it was if you had bearish leanings. Okay, I admit that was bad, but market surged higher Thursday after the President of the European Central Bank, “Super” Mario Draghi pledged to buy the debt of troubled eurozone countries.
On Friday more good news came out – unemployment numbers were drastically lower than economists’ predicted?
"Good news is good news and bad news is good news, largely because of the Bernanke put," said Eric Kuby, chief investment officer, North Star Investment Management in Chicago.
The slow job growth coupled with warnings from FedEx and Intel this week have led to an overwhelming expectation the Fed will introduce a new stimulus package in the form of more bond buying. One thing is certain we should experience another crazy Thursday.
But can the recent advance last?
The S&P 500 has surged 14% this year and is at its highest level in more than 4 years. Not counting 2009 when equities rebounded from their crisis lows, this could be the best year for stocks since 2003 - nearly a decade.
Much of the 14% gain has occurred over the past three months, and let’s not forget the market has experienced gains over 100% since 2009... an incredible feat in such a short-period of time. So, a correction of say 10% to 20% would not be out of the ordinary. In fact, it is almost expected.
Let’s not forget that September is historically the worst performing month of the year. According to the Stock Trader’s Almanac, the average September return since 1950 is -0.8% for the Dow and -0.5% on the S&P 500. September is the only month that has had more down than up years. Last year, the S&P 500 dropped more than 7% in September.
But another factoid worth noting is that over the past 25 years when the first trading day in September was a loser, the entire month showed a positive return only 27% of the time. During the month, at its worst the S&P averaged a loss of -6.2%, while at its best it averaged a paltry gain of only +1.0%. When September started with a gain, then the entire month was positive 49% of the time, with a maximum loss that averaged -2.0% versus a maximum gain that averaged +3.1%.
One thing is certain, after Thursday’s rally the bears have a lot of work to do if they wish to live up to historical standards.
Over the short-term I do expect to see a pullback due to the extreme overbought nature of the market indices I follow. Almost every major index has pushed into a very overbought state and typically when this type of set-up occurs we should see at least a short-term reprieve. |
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| Overbought/Sold Condition Report |
Overbought/Oversold as of September 8, 2012
S&P 500 (SPY) – 85.7 (very overbought)
Dow Jones (DIA) – 75.1 (overbought)
Russell 2000 (IWM) – 89.0 (very overbought) NASDAQ 100 (QQQQ) – 79.3 (overbought)
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Thank you again for being a part of the Terry's Tips newsletter. If you are interested in signing up as an Insider, visit Terry's Tips today for details.
Sincerely,
Dr. Terry Allen
Terry's Tips
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