This Week We're Aiming to Knock Down a 77% Annualized Return with an Over 91% Probability of Success!

For our November/December expiration period, we now have 10 positions in play. Of the 10 positions, 7 out of 10 are now profitable, one is very close to profitability, one was not filled and one may require an adjustment--which we'll discuss later in the newsletter.

Progress Report--At this point we've got a 9% profit going for the month with a +90% probability of success.

That performance is excellent and we're on track for another good month--but perhaps the best thing about this style of trading is once the trade is established the market or the stocks we are trading on don't have to 'perform'--all that is necessary is the passage of time.

The odds are overwhelmingly in our favor--but there are always wild cards that can make things interesting. So with that in mind let's take a good look at...

The Market

The banking sector exploded higher this morning, along with the broader equity market, as Goldman Sachs added Citigroup Inc (C) to its "conviction list" and existing home sales climbed to a second consecutive month of gains--the National Association of Realtors reported existing home sales rose 10% to an annual rate of 4.53 million, up from a downwardly revised 4.12 million in August.

The bottom line is the uptrend is still intact.

This week, investors will see a number of earnings reports---177 S&P 500 companies are expected to report their quarterly performance, seven of which are listed on the Dow. Earnings are expected to be good; however, as we've seen in the last week any disappointment in either earnings or market outlook instantly triggers a sharp sell-off in that particular stock. With as much of a run as we've had it doesn't take much for investors to quickly lock in profits.

Even though there may individual stocks selling off the market will likely continue to rally--we’re coming to the beginning of the most bullish six months of the year. But the big driver is investors are counting on the Federal Reserve announcing additional measures to stimulate the economy. Known as "Quantitative Easing", the Fed is expected to unveil the new plan during their November 2-3 meeting.

The market appears to be in a holding pattern as investors turn their focus to another busy week of earnings reports, the U.S. mid-term elections and the Fed’s November 2-3 meeting.

Trader’s Tip:

Historically,

• October marks the end of the most bearish 6 month period for the Dow and S&P 500--as November heralds in the most bullish 6 months of the year. October also marks the end of the most bearish 4 months for the NASDAQ.

• October is known as the “bear killer”.

• October 28th is the 81st anniversary of the 1929 Crash where the Dow sank 23% in just two days.

• Thursday, October 28th and Friday, October 29th are historically bullish trading days.

Key Dates:

• November 18th--options expiration for some indices.

• November 19th--options expiration for all equity and all other index options.


What are the Secrets of the Week?

This week’s plays are both high-odds ETFs that give us plenty of room to be right---Our first play offers a +90% probability of success with an exceptional potential return of almost 12%. Our second play provides a +91% probability of win with a potential return on investment of 9%.

With such extreme complacency as shown in the volatility indices, it’s best to remain as neutral as possible until we get through 3rd quarter earnings, the U.S. mid-term elections and a conclusion as to what the Fed is really going to do. So let's get to it...

You can get in on this week's trades along with two new high-probability trades per week by clicking here now.

Stack the Deck on Every Trade,

Robert