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Is This Indicator The Bear Market Killer?

By Costas Bocelli September 15, 2022 Facebook Logo Twitter Logo Email Logo LinkedIn Logo

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September is a kinda special month, ya know.

Yeah, for most ordinary investors, it’s “specially” crumby as it's notoriously known to suck dollars from your investment account.

Just take Tuesday's shellacking after the release of a cozy warm inflation report. 

All the major averages were down more than 4%. It was the worst daily decline since the onslaught of the pandemic back in June of 2020. For that matter, it was one of the worst days since 1929.

So batten down the hatches over the next few weeks.

But I have to tell ya, I’m smelling the roses right about now.

That’s because this month marks the one-year anniversary of Dark Money Indicator, my premium options service that sniffs out high conviction, ultra-bullish bets placed by the world’s most connected financial institutions and hedge funds.

Our proprietary algorithm that sifts through millions of options being traded every day has detected some serious winning trades.

And the results speak for themselves.

The ones that I personally recommended to my readers as “Costas Picks” have returned a maximum gain of +162% over an average holding period of 30 days.

We’re talking about 70 “hand picked” recommendations over the past year sent directly to my readers’ inboxes, each with the opportunity to generate triple-digit returns.

And here’s the best news…

It doesn’t matter much whether we’re in a bull market, bear market or dull, sideways moving market.

There are bullish plays to be had in any market environment. That’s a stone cold fact.

And we get a front row seat as to where these high conviction, ultra-bullish bets are being placed. And subscribers to the Dark Money Indicator have the opportunity to trade right alongside and participate in the potential gains. 

Take Teekay Tankers (TNK)

Just last Thursday, September 8th, the Dark Money Indicator detected a highly unusual, aggressive upside purchase of the January (2023) 30 strike Calls.

In the Dark Money Indicator, we call this intel a “Shadow Spike Alert.”

Some trader, somewhere, was paying $1.60 for 1,000 Call options with the stock trading $24.71 per share.

That equates to a $160,000 bet to control 100,000 equivalent shares of stock.

The Call options at the time were more than $5 out-of-the-money.  

So why would a trader pony up that kind of dough on Call options that are more than $5 out-of-the-money?  Simple. Because they think the stock is going to move in their direction and make some serious cash.

When this trade hit the scanner, it immediately caught my attention.

(Click any image to enlarge)

After reviewing the trade and checking out the technicals in TNK, I immediately sent it out as a “Costas Pick” to my readers.

Sometimes, we may receive a dozen or more shadow spike alerts on any given day. Other days, there may be none.

But the ones that come across that I’m particularly intrigued with, I’m sure to alert my readers.

And TNK has been a monster of a trade so far, even with the stock market plunging earlier this week

In just the past week, those same Calls that could be had for $1.60 are now trading for $3.60, generating a +125% gain.

The stock is now trading $28.88 and hitting a new 52-week high. It’s UP +17% since the trade hit my scanner.

Have a look at the one-year daily chart in TNK…

Now, let me say this…

Those January (2023) 30 strike Calls that are now trading for $3.60 and have already generated a +125% return may be just the tip of the iceberg.

There are still more than four months (127 days) remaining in the life of the option.

And TNK is a super-strong stock and is breaking out big time when viewed on a longer-term weekly chart. The stock is trading at six-year highs, going all the way back to 2016.

Take a look at the 10-year weekly chart in TNK and you can see the massive upside potential with this one.

This is a stock that could easily trade up to $40 or even above $60 and revisit the prior all-time highs.

TNK resides in the Utility Gas industry groups, currently one of the strongest sectors of the stock market.

The sector is outperforming the stock market (Relative Strength is STRONG) and Utility Gas is ranked highly (#4) in our Sector Relative Strength Matrix, so this group of stocks are outperforming most of the others. (Image courtesy of Sector Prophets Pro.)

There’s lots of bullish momentum driving TNK.

Bull Market? Bear Market?

Who cares!

In the Dark Money Indicator, we FOLLOW THE MONEY FLOW and piggy back some of the world’s most connected traders.

This first year has been an amazing journey.

And I can’t wait to see what’s coming next.

Got Options?  Got Dark Money Indicator?  You Should!

Costas

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