by 08/29/08
I'm always surprised when financial pundits in the United States forget to mention that, although domestic markets may be closed for a holiday like today's Labor Day commemoration, foreign markets are open and generally thriving.
Across the globe, brokers are still pushing and pulling the markets -- they're just doing it in Buenos Aires, Japan and London.
Because I feel blessed to live in the greatest nation in the world, I know it's easy to get stuck in an insular view that America is the only land of opportunity, but it's a big world. The sooner we get acclimated to that idea, the sooner we can benefit from it.
DO YOUR PORTFOLIO A WORLD OF GOOD WITH OPTIONS
While I don't necessarily advocate investing directly on foreign exchanges unless you are competent with currency conversion and have the constitution to trade at all hours of the night, there are plenty of opportunities in domestic markets that allow us as options traders to take advantage of booming economies and bright sectors abroad.More Trading Ideas
In my Tactical Trader options trading service, I've been helping my members to capitalize on global infrastructure companies, as well as those that support corporate globalization efforts.
The simple truth is, companies that are thriving worldwide are much-less likely to be affected, let alone traumatized, by less-than-opportune domestic economic conditions.
In addition to looking for "worldly" profits, I've been instituting a particular strategy that's allowed me to more significantly reap the rewards. I like to call it "basket trading." It's a simple idea, but aren't those usually the best ones?
A CASE FOR BASKETS
Simply put, for each basket, I identify four to nine trading names that will either benefit or suffer from a broader-market shift.
Because you're in charge of your investing destiny, you can tailor your trading baskets to help you make the most money. I've crafted baskets of all call options, all put options or a careful balance of the two to profit from some stocks' ascent piggybacking on other stocks' decline.
For example, when crude oil prices are on the rise, it's a great time to look at other energy-related names that might be benefiting. And when oil prices pull back and consumers' discretionary spending goes up, you can look for the stores and restaurants that might be the recipient of the "extra" money in customers' wallets.
Better yet, you don't have to wait for earnings season or any other specific events to create a trading basket -- unlike basketball season, it's always basket trading season!
Michael Shulman
The Obama Bounce Trade: Here Today, Gone Tomorrow
When the election euphoria ends, the markets and investors have to face reality about the economy.
7 Trades You Can Make After Election Day
The election is over! How to play and trade Obama's first year in office.
Don't Let Optimistic Analysts Lead You Off a Cliff
Long-only money managers are urging investors to play the coming bottom. Before you become a lemming, check out this S&P math.
The Best Short in This Market: Restaurants
Restaurant spending continues to decline, so it's time to put your money where your mouth isn't. There are four companies that you should consider shorting now.
An Incredible Opportunity to Short the Banks
The 'Rescue Bounce' gives traders another chance to profit from this debacle in the financials.
