This Week We're Knocking Down a 18% Return with an 89% Probability of Success!

As the U.S. economy continues its recovery, there’s a renewed sense of optimism during this holiday season. However, the markets are becoming increasingly complacent so be cautiously optimistic on bullish directional plays as we should expect to see more bad news coming out of the euro-nations in the coming months.


With the VIX dropping 8.5% to 16.11 this week, the cost of using options as insurance against the S&P 500 continues its decline and is now down from this year’s earlier high of 45.79 back in May. As a famous investor once said, “Be fearful when others are greedy and be greedy when others are fearful.” Regardless of sentiment or market direction, subscribers of “the Winning Secret” never give the Grinch a chance to ruin their holiday season. For this week, we’re looking at three great plays to start off the New Year:

For February:

• 88.95% - 89.16% probability of win, 15.74% - 17.65% return on investment.

• 87.96% - 88.87% probability of win, 12.87% - 13.90% return on investment.

For January:

• 90.24% - 88.38% probability of win, 8.70% - 13.64% return on investment.

The Markets and How They Affect Us

On Friday’s close, the U.S. stock market gained for a 3rd straight week, sending the S&P 500 to a two-year high, as better-than-estimated data on retail, manufacturing and housing boosted economic confidence.

The S&P 500 rose 0.3% to 1,243.91, finishing a 3-week rally which had been the longest run since Nov. 5th. The Dow also gained 81.59 points, 0.7%, to finish at 11,491.91. With strong corporate earnings, there is a renewed sense of optimism driven by the expectation that profits will continue to be strong.

As the U.S. recovery continues, investors may see growth between 3 - 3.5% next year. The economy grew at an annualized pace of 2.5% during the 3rd quarter - the U.S. economy definitely has some momentum building.

Overseas, there is growing concern that Europe’s debt crisis is worsening as Ireland’s credit rating was reduced due to declining financial strength and the cost associated with bailing out their lenders. Additionally, six Greek banks are currently under review for a possible downgrade a day after the country’s bond rating was put on a watch for a possible reduction.

Finally, Visa and MasterCard, the world’s two largest credit card companies, fell 17% and 13% after the Fed’s proposal on new rules that would offer to cut debit-card transaction fees by 84%; thereby, significantly impacting their business model.

What are the Secrets of the Week?

We have three plays for the week, two on equities and one on an ETF so let’s get started.

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