How smart traders invest
Friday, 18 October 2019
By Bernd Struben
- Tracing the untraceable
- A different kind of derivative
‘Wealthy investors don’t just ride the trends. They make the trends.’
Billion Dollar Breakout Trader’s Ryan Dinse
This week the spotlight has been squarely on market veteran Ryan Dinse.
Ryan wears a number of hats at Port Phillip Publishing. But it’s his premium trading service, Billion Dollar Breakout Trader, that’s really grabbed our attention.
And for good reason.
At time of writing there are 13 open small-cap trades on Ryan’s buy list. And 12 of those (at market close on Wednesday) are in the green.
You read that right. 12 out of 13 trades are showing gains.
How does he do it?
He keeps close tabs on the money flow from the ‘smart money’.
By that he means institutions, super wealthy private investors, or a company’s own directors and senior executives.
When that smart money starts flowing into small-cap stocks it’s very often an early signal that the stock is about to breakout. That can see rapid share price gains of hundreds or even thousands of percent.
I showed you some examples in yesterday’s Insider. You’ll find a lot more examples — both historic and from Ryan’s actual trade recommendations — in his report here.
More, after a peak at the markets…
Overnight, the Dow Jones Industrial Average closed up 23.90 points, or 0.09%.
The S&P 500 closed up 8.26 points, or 0.28%.
In Europe the Euro Stoxx 50 index closed down 10.63 points, or 0.30%. Meanwhile, the FTSE 100 gained 0.20% and Germany’s DAX closed down 15.16 points, or 0.12%.
In Asian markets Japan’s Nikkei 225 is up 21.51 points, or 0.10%. China’s CSI 300 is down 0.65%.
In Australia, the S&P/ASX 200 is down 39.79 points, or 0.60%.
West Texas Intermediate crude oil is US$53.98 per barrel. Brent crude is US$59.91 per barrel.
Turning to gold, the yellow metal is trading for US$1,492.96 (AU$2,188.13) per troy ounce. Silver is US$17.56 (AU$25.74) per troy ounce.
One bitcoin is worth US$8,076.26.
The Aussie dollar is worth 68.23 US cents.
Tracing the untraceable
Ryan calls the critical stage before a stock’s share price begins to rocket higher ‘the silent crossover’.
Why is it ‘silent’?
Here’s Ryan with the answer:
‘These kinds of stock price explosions tend to be untraceable to the average investor. They only become apparent after the fact. When the deep-pocketed guys have already made their move.’
This is why Ryan spent many years — and millions of dollars in trades — developing a system to detect just these sorts of big money moves. When his proprietary system pings on a silent crossover, it indicates this is likely just starting to happen. And you can trade the stock before it shoots higher.
It also works in reverse. Signalling when the smart money is pulling out. Letting you know it’s time to exit.
Now, of course, no system is perfect. Some trades will go against you. As we often remind you, never invest more than you can afford to lose.
But as mentioned up top, 12 out of Ryan’s 13 open trades are currently showing gains.
I showed you one of his closed trades yesterday. It was for healthcare provider ImExHS Ltd [ASX:IME], which he recommended on 8 May. Three months later Ryan recommended exiting the stock…for a 67% gain.
Today I’ll show you his top open trade.
Since this is still a live trade, I can’t tell you the name of the company. Just that it’s a small-cap Aussie healthcare and tech stock. And on 18 March it triggered Ryan’s alert. That’s when he recommended it in his trading service, Billion Dollar Breakout Trader.
Have a look at the chart:
For 18 months this stock’s share price ranged between 3–5 cents. Until it hit the silent crossover. Seven months later the share price was close to 30 cents.
And even after a 360% gain, Ryan’s system says to stick with this trade. With the smart money yet to exit, this stock could have far higher to run.
Now that’s a seven month old trade.
Here’s something I believe you’ll find far more intriguing.
I spoke with Ryan this morning and he’s getting set to the pull the trigger on his next trade. A tiny Aussie company that’s just pinged his silent crossover alert.
The trade instructions are due to go out Monday morning before markets open. Meaning you still have the opportunity to get into this trade. One Ryan tells me could put the gains made in the above example to shame.
Here’s what he just sent to me in a follow-up email:
‘It’s not often you find a small cap Aussie stock taking on tech giants like Amazon, Microsoft and IBM. But that’s exactly what Monday’s new trade is doing. What’s more, it’s winning!
‘You see, they have a developed unique patented technology that could give them a huge advantage in an area that makes up a whopping 80% of all web traffic.
‘Think how big that market is Bernd.
‘Importantly, there are recent signs that their product is finally getting some traction in one of the most exciting and lucrative markets in the world.
‘I’ve had this company on my radar for a while. Last week I finally got what I’ve been waiting for…a ‘silent crossover’ indication that the smart money is beginning to see this potential too.
‘The next six months could be a company maker for this stock.’
Subscribers to Billion Dollar Breakout Trader can expect Ryan’s new trade recommendation to hit their inbox early Monday morning.
If you’re not yet a subscriber, there’s still time to get in on his latest trade. The service is accepting new members until midnight this Sunday.
To find out if Billion Dollar Breakout Trader is right for you, you can get the full story in Ryan’s ‘Silent Crossover’ report here.
A different kind of derivative
We touched on the inexorable growth of the legal cannabis market (medicinal and personal) in yesterday’s Insider. Along with two ASX listed stocks that could be the biggest beneficiaries of the ongoing global legalisation trend.
Unfortunately, the link my team provided for more information on those two stocks was incorrect. This is the correct link.
Today, we turn to Canada for a brief follow up.
Yesterday marked one year since Canada became the second nation in the world to fully legalise the recreational use of cannabis. Uruguay beat them to the punch by a full five years. The South American country legalised marijuana way back in 2013.
But Canada’s move grabbed all the global headlines. And the Canadians continue to pave the way for others to follow.
Yesterday, for example, marked a new milestone in Canada’s legal marijuana markets. Though none will be available for sale for 60 days, cannabis derivative products — think THC infused drinks and snacks — have been given the green light.
Now this won’t usher in the same rapid industry growth — and massive share price explosions of listed pot stocks — that Canada’s initial legalisation of dried cannabis buds did last year. But it will open up a whole new market. One that’s being labelled as ‘cannabis 2.0’.
Here’s a snippet from Deloitte’s report into the new market:
‘Cannabis 2.0 will undoubtedly be a “slow burn” at first, but as more products become available we’re confident it will catch fire and gain momentum. Cannabis 2.0 will position Canadian companies and talent for global growth—even as the US market gains momentum.’
Deloitte puts the value of the new edibles (and drinkables) market at $3.1 billion. No chump change, that.
But it’s not just Canadian companies poised to take advantage of the new growth spurt on cannabis markets.
Sam Volkering is convinced two particular ASX listed stocks are among the best cannabis plays in the market.
That’s all for today…and this week.
Enjoy the weekend and I’ll be back with you on Monday.