“Here’s Why I’m Not Taking December Off”
Hey Gang,
Some traders think December is for coasting.
I know better.
This is when smart money makes its biggest moves.
Every year, certain sectors go from zero to hero, delivering massive gains. The key is knowing where to look—and how to act before the crowd catches on.
Last December, my focus on the XLE (Energy Sector) ETF delivered a jaw-dropping 460% peak gain in less than a month.
This December, I’m seeing signs of another big move brewing—this time, in a completely different sector.
I’ll be diving into all the juicy details December 4th at 2:00 PM when I premiere my new strategy –Sector Strike.
Normally, I can’t reveal any details ahead of time.
But since most of my handlers are on vacation, I’m going to slip a sneak preview to you today by covering a stock in one of the most beaten down sectors this year.
Market Sector Breakdown
To kick things off, I need to identify the sectors that underperformed the S&P 500 over the last two months.
The table below, while not to the penny, captures the essence of this:
Utilities, health care, consumer staples, and real estate are the worst-performing sectors.
This makes sense as money flowed back into the market after the November presidential election.
Looking at this list, you might be thinking, “How can I find setups in slow-moving sectors like the XLU or XLP?”
That’s where the brilliance of my S.A.M. AI comes into play.
With this next-generation tool in hand, I can quickly scan EVERY stock in these sectors for potential A+ setups.
And sure enough, one stock popped to the top of my list immediately: Welltower (WELL)
Let’s take a deeper look.
Welltower
Real estate hasn’t had an easy go the past few years.
The work from home trend decimated office space, leading to a lot of commercial lender losses.
But, not all real estate holdings are the same.
Welltower invests in senior housing operators, post-acute providers, and health systems. With the stock just under all-time highs, this is the kind of chart that plays nicely into my TPS setup.
Let’s take a look at what we’ve got.
This is a near-picture-perfect TPS setup on the daily chart.
It’s got:
- A clear upward TREND
- A very nice consolidation PATTERN drawn with the solid white lines
- A SQUEEZE signal at the bottom with the red dots
Plus, that squeeze comes with a momentum shift higher, indicated by the dark blue histogram turning light blue.
Welltower only has monthly expirations, but that’s fine.
I looked for an A+ setup on the daily chart for this particular stock. This gives me more time and more price movement on a stock that isn’t going to pop and drop by multiple percentage points every day.
With narrower price movement, I can go at or in-the-money with my strike selection to get a little more bang for the buck.
The Power of Sector Rotation
What makes WELL such an interesting play isn’t just the technical setup – it’s the timing.
Real estate has been crushed lately, but history shows us something crucial: sectors rarely underperform for three consecutive months. And when they bounce back, the moves can be explosive.
Just look at what happened with energy stocks last December. While most traders were winding down for the holidays, XLE delivered that monster 460% gain I mentioned earlier.
But here’s what really gets me excited…
My research shows that when you combine sector rotation with my TPS strategy, the profit potential goes through the roof. We’re talking about gains like:
- 723% in 6 weeks last November
- 436% in just 16 days
- 261% in 15 days
- 155% in 30 days
And those aren’t cherry-picked winners. Since October 2023, my Sector Strike approach has delivered:
- 89% win rate
- Average gain of 210%
- Average trade duration of just 28 days
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