There was the 60% winner on Freeport-McMoRan … almost 75% on Schlumberger … the 89% gain from Wells Fargo … the 91% winner with the iShares MSCI Japan ETF … the a 130% gain with the SPDR Select Energy Fund, XLE …
Over the last few months, we’ve been tracking an off-the-radar yet highly profitable trading system.
As just noted, it has produced a slew of double- and triple-digit winners in just a matter of weeks — sometimes just a few days.
This is a trading system I’d say not one in 1,000 investors knows about — and not one in 10,000 is able to benefit from.
And recently, the analyst behind it sat down with our thematic expert, Matt McCall, to pull back the curtain on the details, and discuss how investors like you can put it to work in your own portfolio.
***We’re talking about Stefanie Kammerman and her Dark Pool Trader system
If you’re a newer Digest reader, Dark Pools are private stock exchanges where the Wall Street “big boys” place their trades.
These exchanges allow traders to buy and sell huge blocks of shares without running the risk that other traders will see their hand.
You see, massive institutional traders don’t buy and sell stocks in the same way you and I do. They’re simply too big to place their order on, say, E-Trade.
This is because 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, these big-ticket traders make their transactions on Dark Pool exchanges in an attempt to camouflage what they’re doing.
But here’s where it gets interesting for you and me …
What if you were tipped off about the buying and selling activity of these giant institutions?
What if you could anticipate what stocks and ETFs were poised to make big moves, and then ride along with that momentum?
You can.
That’s the foundation of Stefanie’s Dark Pool strategy.
***Meet Stefanie Kammerman — the analyst behind Dark Pool Trader
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. Over the last many months, we’ve been posting her results here in the Digest so you can see them for yourself.
As you saw with the returns at the top of this Digest, Stefanie has been doing quite well. And then she sat down with Matt McCall to discuss the details of her system.
It turns out, Matt and Stefanie go back four years — and Matt is a big believer in her strategy.
The two met during a live broadcast in Las Vegas when Stefanie suggested the gold market was going to climb — even though it had been caught in a brutal selloff for years at that point.
Yet shortly after that broadcast, gold began to climb as Stefanie had predicted.
***Being profitable while getting a trade’s direction 100% wrong
As I was learning about the Dark Pool strategy, one of the biggest benefits that jumped out at me was how the system can be profitable — many times highly profitable — even if your forecasted trade-direction ends up being 100% wrong.
This is because with many of Stefanie’s trades, she issues two positions — one bullish, one bearish. In other words, you’re covered regardless of which direction the trade goes.
You might scratch your head reading this. After all, it’s reasonable to assume that two opposite positions would cancel-out one another, but it often doesn’t work that way.
You see, Stefanie uses options in her service — calls and puts. Don’t worry if you’re less familiar with options. Stefanie tells you all you need to know. They’re easy to learn.
But given how options work (what increases and decreases their value), a trade with two opposite positions can still be quite profitable because it’s not just price-action that impacts their value.
We can look to Stefanie’s recent trade on casino giant, MGM, to illustrate. Recently, we profiled this live trade here in the Digest.
From that issue:
Her buy-price for the call was $0.23 per share. And her buy-price for the put was $0.18 per share.
So, how is this live trade shaping up?
A few days later, the buy-price for the call has dropped to $0.19. So, that side of the trade was down $0.04, or 17%.
However, the buy-price of the bearish side of the trade — the put — has increased to $0.27.
This means it’s up $0.09, or 50%.
Averaging 50% gains against 17% losses put the trade at a 16.5% gain so far.
At the end of the day, the Dark Pool strategy is how a select group of Wall Street pros have been making big money for years.
Have a good evening,
Jeff Remsburg
