Stock Prices Drop, but You Make Money!

Stock Prices Drop, but You Make Money!


Hey, it’s Clay, and we
have the weekly review of the Power Profit Scan Newsletter, which is a portion of the Inner Circle subscription service
that I offer at the site. First off, a couple disclosures. Am I trying to imply that
every alert I send out is a huge success and
everybody’s always making money? As much as I wish I could say
that I was the perfect trader who had perfect scans,
that just doesn’t exist. So no, not every single alert
that I send out is gonna be having money rain down from the sky. In fact, if you watched last week’s video, then you saw I was plenty
transparent about that, showing some alerts that
didn’t quite work out. And then second off, as
far as the newsletters that we’re gonna be going
and taking a look at, we’ll be going back to
the week of July 29th. Clay, why you going so far back into time? Very fair question. Two reasons. First off, it’s just simply
giving everything else plenty of time to play out so that we can see
actually what has happened. And then second, it’s just
a matter of being fair. This is a subscription
that you have to pay for, so the last thing I want is for somebody to pay for something, and then all of a sudden see
that stuff out there for free. I’m assuming you can see how
that wouldn’t quite be fair to that person that paid. So with those disclosures out
of the way, let’s get into it. A couple quick questions
I get all the time, hey Clay, what price range do you cover? I cover price ranges all over the place. I don’t care that much about price. I care about odds and probabilities that I think the alert will
actually create success. And I’m not going to ignore
some sort of high probability setup out there because, well, it doesn’t meet some sort of price range. So again, I factor in price,
but I’m also not gonna paint myself into a
corner and limit myself, which could cause out on missing
out on other opportunities just because it’s some
sort of price range, or anything like that. So I cover prices all over the place. And as you’ll see, there’s gonna be a good variety of prices. And then second off, Clay,
when do you send it out? I send it out over the weekend, that way you have plenty of
time to look things over. So it’s not like it’s some
text alert that you have to go and rush, and make some
sort of rash decision. Totally opposite. You have plenty of time
to look things over, so that is how it works out. So the first alert we’re
gonna take a look at, ticker symbol WMB. And it was all just
about pullback on panic. You can see right here, quite
the nasty move, it happened. Just was pulling back,
pulling back, pulling back. So I had that green line
there mapped out there. So let’s see how this one played out. So here’s what the chart again looked like going in to the weekend. So the next (mumbles) you’ll
see will be on Monday, so here we go. So you can see there the price went, hovered right along that area nicely, plenty of opportunity to get in. And then, a very nice gap up. And then that happened, which
price rolled right back over. But that move there before
totally falling apart, was good for 7.3%. Not a huge percentage, but you gotta keep a
couple things in mind. First off, this is a big board stock where you could have easily thrown in, let’s just take a big number, $100,000, and had no problem selling
because this thing does millions upon millions
of dollars in volume. Whereas, if you buy
$100,000 of a penny stock, sure you can buy that, but have fun when it comes
time to try to sell it without totally just
crashing the stock downwards. So yeah, 7.3% not huge. But definitely very
doable when you consider it happened in less than a week. You can go to your local bank
and if you were to request, and let’s say you got 4% from it or 5%. Go in to your local bank and say, hey, I’d like 5% in the next five days. They will look at you like a crazy person. So not a big percentage,
but definitely respectable. But the one thing to keep
in mind is that it also, a little bit of a disappointment. You had the big gap up, and
then the price just totally, totally rolled back over. So again, not like it was
a disappointing trade. Not like it was disappointing
in the sense of oh, it was just there was no
chance at all to make money ’cause obviously right there there was plenty of chance to make money. But also, I could see
how this could’ve been a very small winner, maybe
even just a breakeven trade. So one of those where it
just didn’t quite work out. And the reason for this being that during this period of time, the markets as a whole were
really getting beat up. And that’s why when we get
to the whole shorting part here in a little bit,
it’ll make more sense. But the point being, there
was opportunity to make money, but by no means was this
any sort of home run trade. Next alert we’re gonna look at is FIX. And again, one of these panic things. As I was saying, the markets
as a whole were getting very, very rough and nasty
around this point of time. So it was a situation of
can this nasty candle there get down to that 39-51 area? So let’s see how this played out. So there’s the green line, and we’ll see how this one all unfolded. So pulled back a little bit
more, didn’t quite hit it. Went sideways, pulled back a little more. You can see right there, filled. Some nice sideways action right there. And then a very, very
strong candle right there. But then here’s a problem. Price just rolled right back over. So again, that move right
there was actually good for over a dollar move. But to be fair, like I said, that was one day and then
things totally rolled back over. So I can easily see
that obviously not being a huge loser or anything, ’cause I mean it did go
up in the right direction. But I can see it being
realistically a small, small winner, a breakeven, or a very
small loser just because, like I said, it did roll back over. So again, that kind of just
how the market goes sometimes. You get filled and then all of a sudden, I mean think about it, at that point, the chart, things were
looking very, very solid. Good solid bounce, but
that was all that happened and back down it went. But
that’s just the name of the game. So yeah, sometimes you’re gonna
have things that are looking very hopeful, and then you
might end up just taking a small winner on ’em. Or who knows, even breakeven
or have a small loss. But it’s all about just
keeping risk controlled and not let anything spin out of control. ‘Cause as you’re about to see, when it’s kind of rough from the long side which is what we’re seeing here, there’s other opportunities in the market. And this opportunity is known as shorting. If you are newer, real quick
what does shorting mean? Shorting means that when prices go down, you actually make money. Which sounds really, really bizarre. I remember the first time I
heard about it, but it’s true. So that’s what shorting is all about. It has nothing to do with how
long you hold onto a position. It’s about you making money
when values of some sort of object, in this case it’s
gonna be stocks, go down. So stock values go down
and you are actually gonna be able to make money. So part of the newsletter I send out is for these types of opportunities. And this part doesn’t have images because it assumes that the
people have gone through the class that I offer on shorting. So therefore, I don’t need
to map things out for them because they have knowledge. So all I’m doing is pointing
kind of, if it was a pond, I’m just pointing out, hey, there might be some fish over there. But because the people know how to fish, they just go over there and
they take care of the rest. So that’s why there’s no
pictures, just ticker symbols. And I wanna go through each of these. So let’s first start off
with ticker symbol AMD. Now a little spoiler, you’re gonna see some
good solid percentages, especially when you consider
these are big board stocks. But along with that, also keep in mind there’s the options market out there too. So these percentages could’ve
been much, much, much bigger within the world of options. Now I’m not gonna go into what are options and how they work, or
anything in this video. My point is remember,
there’s always a couple ways to make money in the market
from prices going down, not only the stock itself, but then also the options market too. So like I said, we’ll focus on the stock, but keep that in mind
that these percentages, you could add a couple
zeros to these percentages on the world of options, and that would be how things turned out. So at this point, kind of
think about what we’ve seen. We’ve gone over a couple
of long-sided trades, meaning long, you wanna see
prices or when values go up. But nothing has really worked out. It’s been like those small
little winners or breakevens, or who knows, maybe even small losses. But let’s see how this opposite
side of the market goes on which is really gonna show flexibility. So like I said, we wanna
see prices going down. So I’ll kind of go through
these relatively quickly, but that’s very good to see. Look at the price dropping,
dropping, dropping. And that drop over the time
span of basically just about a week, good for 19%. Even if you screwed up half the trade and let’s say got 10% out of it, 10% for basically week and a half, you’re not gonna get
that at your local bank. And then again, you keep
in mind the options market, and those put options especially, in particular would’ve been
a very, very nice mover. So there’s the first
one from the short side. The next one we’re gonna
take a look at here is HIBB. Again, wanna see prices going down. So a little fake bounce to the upside. Then things get pretty
nasty and down prices go. And that much further to
the downwards direction. And that move right
there was good for 20.5%. So again, you screw up half the trade, you’re still looking at 10%
in a matter of basically about a week and a half, and then you have the options market too. So again, while other people
that maybe only try to make money when prices go up or out, they’re struggling and just
taking those small winners or taking those small losses,
or even just breaking even. Those people that are making
money when prices go down, there’s another great opportunity. Then the final one we’re
gonna look at here is EXPE, so let’s see how this one turned out. Now keep in mind the price here. We are talking about a stock over $100 because the next stock we
talk about you’ll see will be quite a bit of ways from that price range. So that just goes back to, hey Clay, what prices do you cover? I don’t really care about prices. I care about probabilities
and odds of success. So just keep that in mind, $140 stock. Again, we wanna see prices go down. And you can see they really
start to drop and drop and drop, and keep on dropping. And that move right there was good for basically 10% to the downside. Again, not a huge percentage
but think about it. We’re talking about $140 stock, and if you factor in the
options market there, those options would’ve made
some very, very big movements. So again, other people out
there may be struggling trying to make money
when prices are going up. Here we were three for
three on the shorts. All of ’em making very solid
movements in our direction. And then the final one I wanna look at, we’re going back to the long side. So again, we wanna see prices going up. Ticker symbol SLS, as I
called it a pullback-and-go. Basically you can see here
was this price gonna action pullback and then go back to the upside? And now we’re talking
about look at the price, essentially a 15-cent stock. So talking about $140 stock, now we’re talking about a 15-cent stock. So let’s see how this all played out. So there’s the chart
going into the weekend. Let’s see what happened that first day. You can see the price pulled
back, hit that green line. And then from there,
very nice follow-through and that much more follow-through before the price movement
basically pulled right back. But that movement right
there, good for 78.6%. Now I’m not saying anybody
played it perfectly. But again, let’s say you
screwed up half the trade, that’s basically 35%
move in a couple of days. And I’ll save you the
trip to your local bank. You’re not going to make 35% on your money in two days at your local bank. But a great way to end the week
and a great way to show that yeah, just because going
long can be a headache in a lot of situations, there can always be those areas out there that still allow you to
make some good solid money. So like I said, very, very
nice way to end the week there. And also, just a good overall week. Frustrating from the long side,
but that’s why as traders, I can’t repeat enough,
you have to be flexible. You have to open up all the opportunities. And one of those big
opportunities then unfortunately too many people don’t
open up to themselves as being able to make
money when prices go down. But yeah, overall, if you
were able and willing to try to make money when prices went down, big picture, this was a great week. If you would like to join
and get these newsletters, then all you have to do is
go to claytrader.com/team. Also along the newsletter,
there is a live chat room that’s more so for day trading and such. But we have plenty of swing traders that hang out in there too. And there’s an app that
comes with all of this, that way you don’t have to
stay, change your computer. You can stay in touch with
the chat room and the alerts and all that stuff no
matter where you are. So again, more than just the
newsletter that you saw here. In fact, the chat room usually
gets talked about more. But that is how you can join. And as far as the
investment price to join up, ’cause that’s what it
is that you’re making an investment into yourself. So the question to answer is, okay, do I believe the service
can make me more than $8.25, not per day but per week? If you think it can, then
the investment that you make of that $99 is gonna pay for itself. Again, $8.25 per week. If you think the service can
help you make more than that, then that’ll be a good
investment you make. Now if you went that route, it would be even cheaper since
you get three months free. But like I said, I’m just
taking the quote-unquote more expensive route in the
sense of that right there. So the $8.25 mark is
even lower for that one. But that’s the key number. Just look at it as 8.25, and if you believe it
can help you with it, then yeah, go there, get signed up. If there are any other questions, leave them down below
in the Comments section or reach out to me through the website. I’d be happy to answer
any questions you have. But overall, a very solid week and a big congratulations to
all you members out there.

3 Comments

  • the ghost

    September 7, 2019

    What platform do you use on all video …what broker???

    Reply
  • Adam Sapple

    September 8, 2019

    Clay, will you (we) be shorting WKHS on Monday? lol

    Reply
  • dmtryy

    September 8, 2019

    Hi Clay! I'm finally done with getting enough money to purchase an access to Inner Circle, but there's one question that bothers me. Will it really be worth it considering that i'm a little above beginner level? I'm currently going through Adam Grimes' course since I cannot afford yours for now. 300$ is a pretty big investment for me and I'd want to get the most out of it so Your honest answer will be appreciated. Cheers!

    Reply

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