Over the past three months as markets have plummeted then rallied, one market approach has been racking up consistent winners. Here are the details

 

Let’s talk about a market strategy that can make you a lot of money … fast.

Suddenly rolling your eyes?

I would assume so. Our average Digest reader is above-average in both intelligence and investment experience so I would bank on a skeptical response.

I’m similarly skeptical when it comes to these kinds of claims. Whenever I read anything that carries even the slightest whiff of “big money fast,” glaring red lights begin flashing in my head and I run for cover.

After all, we all know that claims about quick wealth in the stock market are usually recipes for disaster.

But that’s why what I’m going to share strikes me as a startling exception …

***Over the last few months, the executive team here at InvestorPlace has been vetting a trading system from a former Wall Street pro

 

We’ve been following her real trades, in real time, watching with impartial objectivity.

We wanted to determine if her trades were profitable — and how profitable, to be exact. We also wanted to determine whether or not her system was relatively simple to use.

It really boiled down to this: was she offering something that would be valuable to our readers?

From what we’ve seen over roughly the past three months, the answer is “yes.” But it’s more than that. Her performance has been practically jaw-dropping.

Of course, words mean little, and the investment universe is full of big promises. So, let’s dig into her actual numbers together so you can decide for yourself. In today’s Digest, we’re returning to Stefanie Kammerman and her Dark Pool trading system.

Regular Digest readers will recognize Stefanie and the term “Dark Pool” as we began profiling her and her trades back in early March. But as the Coronavirus sent the market crashing, followed by an epic rally, profiling Stefanie’s trades went to the back-burner.

But that didn’t mean she stopped trading …

Let’s see how her system has been performing in recent weeks. We’ll also review the nuts-and-bolts of her market approach for any newer Digest readers.

I’d guess not one in 1,000 investors knows about the market approach you’ll read about below — and not one in 10,000 are able to benefit from it. We’re thrilled to share it with you.

Enough intro. Let’s talk about Dark Pool trading.

***How to trade the “stealth” stock market

 

We initially profiled the “Dark Pool” in our March 4th Digest. If you missed it and want to dig into all the details, click here to access that issue, but I’ll provide the highlights here so everyone can follow along today.

For you and me, buying stocks is easy. That’s because the amounts we deal in are tiny relative to the number of shares outstanding, and relative to the market values that public companies have.

But institutional investors — think pension funds, large hedge funds, and insurance funds — they don’t have it so easy.

The large institutional investors of the world have a ridiculously large amount of money to invest in stocks and bonds and other assets. For example, a single large institutional investor can manage over $20 billion in assets.

But moving $20 billion into high quality investments at good prices is a logistical nightmare.

Think about why — giant fund managers can’t place orders to buy or sell their entire positions at once. That’s because those massive orders would overwhelm the amount of interest from the other side of the market … which would cause massive share price swings up and down. This would make it impossible for the big manager to get a good price on his position.

The reality is that when an institutional investor makes a big move in a stock, it can easily push that stock’s price around by 5% – 10% in the span of a week.

So, how do the big boys make their massive trades without tipping off other investors in the market?

The Dark Pool.

***What is the Dark Pool, and how can you benefit?

 

Dark Pools are private stock exchanges where the “big boys” on Wall Street place their trades. They’ve existed for decades on Wall Street.

Regular investors buy stocks on public exchanges like the NASDAQ, AMEX, and the NYSE. But big Wall Street institutions like Goldman Sachs and JP Morgan don’t. They trade on private exchanges — that regular investors don’t have access to — known as the Dark Pools.

In today’s market, the Dark Pool is a series of networks that allow traders to buy and sell large blocks of shares without running the risk that other traders will see their hand.

How does Goldman Sachs sell 20 million shares without moving the market down? They don’t have to report one single share being sold until their entire order of 20 million shares is filled.

Large traders are given up to three hours to report their trade to the trade reporting facility (TRF) that trickles down to the consolidated tape.

Now, wouldn’t it be great if you could monitor the buying and selling activity of giant institutions and anticipate what stocks and ETFs are poised to move 5% – 10% in the span of a week?

It turns out you can — which is exactly how Stefanie is generating huge returns with her trades.

***Meet Stefanie Kammerman — the trader behind the Dark Pool strategy

 

Stefanie has devoted the past 26 years to studying the Dark Pool market phenomenon.

After college, she made her way to Wall Street, where she went to work for the biggest proprietary trading firm in the country. It was there a legendary trader took Stefanie under his wing and taught her all about something called the Dark Pools.

It’s a mysterious sounding term that few investors truly understand. But those that do know the Dark Pools are one of the market’s most powerful forces.

Not long after learning about this hidden corner of the financial world, Stefanie became one of the top traders at her firm. But after several years on Wall Street … Stefanie left her lucrative career to raise a family.

However, she didn’t completely leave the financial world behind. She took the knowledge of the Dark Pools with her, and began making a Wall Street-sized income, trading from home.

Soon, she began teaching others to do the same, and they achieved incredible results. We’ve begun to post her results here in the Digest so you can see them for yourself — in real time.

It turns out, Stefanie has achieved a 92% success rate picking winning trade recommendations.

***Reviewing Stefanie’s trading performance

 

Stefanie’s first trade which we profiled here in the Digest was on oil services giant, Schlumberger.

It wasn’t clear which direction the stock was headed. All we knew from the notice was that a big move was coming. So, the instructions were to buy both a bullish and bearish position — that way we’d be covered regardless.

By the end of the trading day, Schlumberger’s stock price was sliding. The next day, it fell further …

Just two days after the “buy” notice, Stefanie sent word to close half of the bearish side of the trade … for a ROI of 108%.

The following day, she sent instructions to sell the second half of the bearish trade. This time, locking in 180%.

A simple, blended return of 144% on the bearish side of the trade … in just three days.

Now, to be clear, the bullish side of the trade didn’t go anywhere. So, that invested capital went to $0; but as you know, the blended return on the bearish side of the trade was 144%. So, even factoring in the loss on the bullish side, the total return on the entire trade was still nearly 75% … in three days.

***Stefanie did it again just days later with the SPDR Select Energy Fund, XLE

 

As with Schlumberger, Stefanie liked establishing two positions in this trade — both bullish and bearish. It appeared something big was coming, but exactly what, we didn’t quite know … until news broke of chaos in the oil markets.

Just one trading day after issuing the buy alert, Stefanie sent out instructions to close half of the bearish side of her trade. Because markets were moving fast, she provided a sell-price-range that would have hit an ROI of 160% – 550% depending on the price an investor locked in.

The following day came notice to sell the second half for a 370% gain.

Let’s assume Stefanie locked in the lowest gain on her first leg — 160%. That means the simple, blended average of her XLE bearish trade was 265%.

After factoring in the bullish side of the trade that didn’t go anywhere, we’re still looking at a Dark Pool winner of more than 130% — in two trading days.

***Since those two trades, we’ve tracked eight new ones from Stefanie

 

For some of her trades, Stefanie continued to recommend two positions — one bullish, one bearish. She did this when the potential direction of the move wasn’t clear.

However, in other cases, Stefanie’s system offered greater certainty of the impending move. For these trades, she provided a single-leg directional recommendation.

Below, we’ll update you on each trade. Please note, some are still open.

EWJ — iShares MSCI Japan ETF:

Two directions recommended on 3/19/20

Half-position on bullish side sold on 3/26/20 for an ROI of 131%

Quarter-position sold later on 3/26 for 186% ROI

Quarter-position sold on 3/27 for 286% ROI

Aggregate trade return including 0% return on bearish side: 91.63%

XLF — Financial Select Sector SPDR Fund:

Bearish trade recommended on 3/20/20

Trade did not materialize

Aggregate trade return: -100%

FCX — Freeport-McMoRan:

Bullish trade recommended 4/8/20

Half-position sold on 4/9/20 for an ROI of 100%

Quarter-position sold later on 4/9/20 for an ROI of 40%

Quarter-position sold on 4/13/20 for an ROI 0% (breakeven)

Aggregate trade return: 60%

EEM — iShares MSCI Emerging Markets Index:

Bearish trade recommended on 4/20/20

Bullish trade added on 4/23/20

Aggregate trade return: Still open. No portion closed yet

WFC — Wells Fargo:

Two directions recommended on 5/7/20

Half-position on bearish side sold on 5/13/20 for an ROI of 133%

Half-position on bearish side sold on 5/14/20 for an ROI of 80%

Full-position on bullish side sold on 5/14/20 for 27% loss (this is actually good news, as two-direction bets usually include one of the sides being a 100% loser)

Aggregate trade return: 89.5%

VZ — Verizon:

Bearish trade recommended on 5/11/20

Half-position sold on 5/13/20 for an ROI of 100%

Quarter-position sold on 5/14/20 for an ROI between 135% – 164%

Still holding one-quarter position open

Aggregate trade return: Still open

PINS — Pinterest:

Bearish trade recommended on 5/11/20

Half-position sold on 5/13/20 for an ROI of 100%

Quarter-position sold later on 5/13/20 for an ROI of 330%

Quarter-position sold on 5/14/20 for an ROI between 300% – 660%

Aggregate trade return: 103.8%

TLT — iShares Barclays 20+ Yr Treasury Bond ETF:

Bearish trade recommended on 5/11/20

Aggregate trade return: Still open. No portion closed yet.

***What’s your take on Dark Pool Trading?

 

You now have the trade returns, so what do you think?

As you can see, it’s not a foolproof system — not all trades materialize. Of course, there’s no “sure thing” when it comes to the markets.

That said, I believe any investor would be thrilled with this win rate, these returns, and the warp-speed in which these returns manifested. On that note, go back and look at the dates of the trade opens and closes.

One final note we’re thrilled to announce …

At this point we’re finally ready to bring this service to our readers. We’re working through the specifics behind the scenes right now. But you can expect to learn how you can take part in these trades in a few weeks.

We’re excited about it, and hope you are too. After all, as this track record illustrates, there’s big money being made with Dark Pool trading.

Have a good evening,

Jeff Remsburg