Most traders don’t know this…

But there’s one strategy that’ll allow you to crush the market with way less risk.

And it may surprise you that this strategy involves creating a position — something I refer to as a cluster — to determine which sectors are inclined to shift higher or lower. 

The most effective way to do so is by going long in sectors of the S&P 500 that are likely to outperform over the next 14 days and shorting a sector that’s liable to trail behind. 

Yet, the easiest method to doing this is by trading options on ETFs that track specific sectors. 

Here’s an example of what I mean…

As I mentioned, I prefer to use options with this strategy. Not only does it make shorting easier (and limit risk), but it also increases my potential profit. 

For instance, I told you I’m long XLU and short XLE. Right now I’m up 65% on my XLU calls and 135% on my XLE puts! 

If you want to get these trades sent to you, click on the button below. It really is one of the easiest and most proven strategies in my stable. 

My Top Stocks Ahead of the Fed’s Next Rate Hike

My Top Stocks Ahead of the Fed’s Next Rate Hike

 Before we begin, I want to let you know that this morning's Trading Pub Roundtable with Don Yocham — featuring Tactical Wealth Investor’s Garrett Baldwin, Austrian trading expert Achim Mautz and yours truly, Senior Strategist Roger Scott — will be held at our new...

read more