Case Study: A Buyable Cycle in Action

Harry Dent and I made big waves yesterday when we screamed “BUY!”

14,000 or so readers tuned in to our Dent Research Exclusive Event, in which we shared our secrets to finding “hidden cycles” in the stock market – whether it’s going up, down or sideways.

These are buyable “hidden cycles,” we’re talking about here.

Because even though Harry’s long-term cycles have been pointing to trouble ahead, he knows you’d be a fool not to take advantage of the shorter-term buyable cycles I’m able to find in any market – with help from the proprietary system I designed five years ago, of course.

Take for instance the lucrative buyable cycle I recommended to Cycle 9 Alert readers in early March…

Did you know that European stocks are up a whopping 10% in the last month and a half!?

I know… I know…

The euro zone is a mess in many ways. And it’s facing three consequential “Trump style” elections this year – so who would think to touch Europe with a ten-foot pole, right?!

I felt the same way back in early March, when my Cycle 9 Alert system triggered buy alerts all over Europe (note: I’ll share the full text of that Trade Alert below).

That didn’t stop me from recommending the trade, though.

There was a buyable cycle in Europe, starting in early March, and we just had to take advantage of it!

And even though I knew things were heating up – in a good way – in Europe, I had no idea just how strong the returns would end up being.

Since my “Buy Europe” recommendation, on March 7…

Spain is up 14.9%…

France is up 11.5%…

Italy is up 10.8%…

The Netherlands is up 9.8%…

And Germany is up 7.9%.

Meanwhile, global stocks are up a milder 5.7%.

U.S. stocks?

They’ve done nothing, with the Dow Jones Industrial Average and S&P 500 up a measly half a percent (yup – 0.5%).

Bottom line: European stocks have been crushing it, beating every other flavor of stock market around the world.

And that’s the type of buyable short-term cycle Harry and I are committed to finding our readers.

I shared this opportunity with you in Economy & Markets in mid-March. A week earlier, I issued a specific trade recommendation to my Cycle 9 Alert subscribers (full text below).

For them, this buyable cycle in European stocks has already generated a locked-in 40% profit… with open gains now exceeding 110%!

There have been dozens of opportunities like this over the last five years. More than 70 to be precise. There will be countless more.

Have a look at the actual Cycle 9 Trade Alert below.
And if you missed it yesterday,

Editor’s Note: The following is the actual Trade Alert sent to Cycle 9 Alert subscribers on March 7, 2017, edited for length. Please don’t share this anyone else. It’s premium content.

Most important: The trade listed below is NO LONGER a buy. Please do not attempt to enter this trade. We are showing you only to illustrate the power of the buyable cycles Adam tracks and uses to help subscribers profit.

“Buy Europe”

2016 was the year of unexpected outcomes.

Brexit shocked everyone in June. And then Trump did the same in November.

But you should know, 2017 will be no different.

The Netherlands will elect its next prime minister next week. France will hold presidential elections in April and May. And then Germany will take center stage in September, when Angela Merkel runs for a fourth term.

From what I can tell, each of these elections have one candidate who rhymes with Trump’s populist, “let’s shake sh*t up” modus operandi. And I suspect that, like Brexit and Trump, no one really knows who will win these elections nor which way the market will go in their aftermath.

But as I shared with you a few weeks ago – in my piece, Our Algorithm Saw it Coming – the Cycle 9 Alert buy signals that triggered just before Trump’s highly-unexpected win were big winners!

The point is… election results in 2016 were far from certain, but trusting Cycle 9 buy signals was the right way to go. We should expect the same this year.

And one thing is certain… Cycle 9 Alert buy signals are popping up all over in Europe.

The bullish moves in European stocks have accelerated in recent weeks, triggering Cycle 9 buy alerts in each of the following markets:

  • Germany
  • France
  • Netherlands

(Cough: the three countries with scheduled elections this year)

  • Italy
  • Spain
  • Sweden
  • Switzerland

Admittedly, it should feel a bit uncomfortable buying Europe, essentially, just before what could arguably be the biggest year of political uncertainty ever for the euro zone.

But that’s what our algorithm is saying to do. And so we should do it!

The best target for this opportunity is a geographically diversified basket of European stocks. I’m recommending a play on the SPDR DJ Euro Stoxx 50 ETF (NYSE: FEZ), which includes exposure to France (36%), Germany (34%), Spain (10%), the Netherlands (7%), along with Italy, Belgium, the U.K., Finland and Ireland (at less than 5%).

[EDITOR’S NOTE: This recommendation is NO longer a buy. Do not make this play now.]

I’ll mention briefly that the chart pattern on FEZ is a trader’s dream.

There’s a massive support level, at $30, that goes all the way back to 2009. Price have bounced higher off this $30 level a total of six times in the last decade – including in February of last year (after the worst January in history)… and again in July (after the Brexit vote).

Essentially, shares of FEZ have been bottoming out in the $30 range for the past 15 months… and now they’re moving strongly higher.

This bottoming-out pattern has even formed what’s called a “reverse head and shoulders” pattern, which suggests shares of FEZ could make a beeline move – from $35 a share to $40 a share – in short order.

Let’s make a play on European stocks climbing the so-called “wall of worry” that lies ahead in three major elections.

Action to take: Buy to open the August 18, 2017, $35-strike call options on the SPDR DJ Euro STOXX 50 ETF (NYSE: FEZ) with a limit order set for….

[EDITOR’S NOTE: Again, this recommendation is NO longer a buy. Do not make this play now.]

To good profits,

Adam O’Dell
Editor, Cycle 9 Alert
Follow me on Twitter @InvestWithAdam

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About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.