A “Guilt-By-Association” Opportunity

We are sure many of you have not yet had a chance to read the HX Trader Primer.

Since we wrote it, it won’t surprise you that we think it is worth reading. It does an excellent job of going through the trading methodology that drives both HX Trader and HX Income.

In there we discuss some of the different “types” of opportunities we see with our strategy. Our core methodology is always the same but the ideas that pop up often come from several types of situations.

One of our favorite set-ups is what we would call “guilt-by-association.”

This is when a company’s stock is hit because another similar company does something wrong.

Sometimes this is the right move. Many companies in the same industry are driven by the similar fundamentals.

Many times, however, this is dead wrong. Just because one company in an industry is hit with something, doesn’t mean that other similar companies will also be hit.

The key is to do the analysis and understand the differences.

This week’s recommendation in HX Trader is one of these types of ideas.

Read more about the idea right here…

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