One Of The Strangest Anomalies In The Stock Market

Not a lot of people now, but I believe one of the best ways to reduce your trading risk

Is to simply trade the stocks that are being added or removed from the S&P 500.

There’s just two simple rules to follow:

  • The ones that get added to the index tend to go up.
  • The ones that get removed from the index tend to go down!

That’s it!

Well, maybe there’s a bit more to know.

Click to watch today’s video and then scroll down to read more.

Ok, so where do you find out what stocks are being added or removed?

I covered this in detail on yesterday’s episode of The Weekly Spread. You can check that episode out here.

But to make a long story short:

Standard & Poor’s (the folks that run the S&P 500) makes it easy as pie. They announce these changes in advance right on their press releases page!

Here’s a report I wrote that details the entire strategy, including the page where upcoming changes get announced.

But here’s a little bonus for you. I just found this news story today:

8 Stocks Face Highest Risk Of Getting Booted Out Of The S&P 500

I thought I’d pass it on to you, because it ties in perfectly with what we’re talking about here.

This news story highlights 8 stocks that are in danger of being removed from the S&P 500.

Now, don’t go out and short those stocks yet. This is just a warning.

What you should do is keep these stocks on your radar and monitor the S&P’s Press Releases page to see if and when those stocks get removed.

Make sure to read the report I linked above and maybe paper trade these for a while before you put real money on them, just so you can see how they react after an announcement.

Oh, and don’t forget, sign up here to get notified every time I go live with The Weekly Spread: The show where I share one income pick every single week — absolutely FREE!

Facebook
Twitter
LinkedIn