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The Most Consistently Profitable Trade I've Ever Seen
By Jeff Clark

August 15, 2008

This trade is too good to be true.

In fact, it's a lot like strolling along the sidewalk and finding a bag of $100 bills just sitting there in your path. You might be suspicious at first. After all, how can you be so fortunate? Why didn't somebody notice the bag before you?

Are you being set up?

It's natural to doubt the validity of a trade that seems too easy. But the trade I'm going to tell you about today has happened 10 years in a row... And it is setting up again perfectly this year.

I'm still naturally suspicious... I can't believe it sets up so well every year. But despite my doubts, the smart thing is to pick up the bag of cash and continue strolling along.

The trade is in natural gas.

Natural gas sells off every summer and then rallies through the fall. Take a look for yourself...

The blue arrows point to the summer bottoms that occur every year just before a fall rally.

I didn't think we'd get a shot at this trade this year. After all, natural gas prices rallied nearly 100% during the first half of 2008. And it looked like they were never coming back down.

But prices have collapsed over the past four weeks. Now the most consistently profitable trade I've ever seen is setting up perfectly for this year as well.

Of course, there's no way to know for sure where the bottom is. Natural gas may be hitting its low right now, or it may fall another 10% or 20% from here. So we can't just go out and buy natural gas futures today and expect it to be profitable.

We need to have a strategy that protects us against farther downside, yet still offers strong upside potential.

Buy Gas Now

How to Make a Lot of Money Trading Oil This Summer

In yesterday's issue of Advanced Income, I recommended just such a strategy to subscribers.

Last year, we used this exact same strategy to collect a 31% "income payment." It ought to work out pretty well this year, too. I urge you to come on board with a risk-free trial of Advanced Income. I don't say things like "most consistently profitable trade I've ever seen" very often... so make sure you're in it.

Best regards and good trading,

Jeff Clark

U.S. Utilities Need a $1.5 Trillion Investment
Southern Co. and other utilities nationwide will have to invest as much as $1.5 trillion in new power plants, transmission lines and other new infrastructure over the next 20 years to meet growing demand for energy, the Atlanta company's chief executive said Wednesday.

"These are extraordinarily challenging times for the electricity industry," said Southern CEO David Ratcliffe, a guest host on CNBC's "Squawk Box" morning show. "We've got to invest major capital in new infrastructure..." Read on...

Inflation Rises Twice as Fast as Expected
US consumer prices rose by 0.8 per cent in July, twice as fast as expected, damping hopes that falling crude oil prices and the slowing consumer demand would rapidly ease inflationary pressures.

The surprise jump in the consumer price index on a monthly basis was accompanied by an annual increase of 5.6 per cent, which was more than forecast and the largest jump since 1991.
FT ($) Read on...


Another big day for biotech... new 52-week highs for Amgen and Genentech

Europe stumbles... Italy, Germany, and Spain ETFs hit new lows.

High oil prices still hurting utilities... Cohen & Steers Select Utilities Fund at new low.

Earnings today... Abercrombie & Fitch, JCPenney, New York & Company.

Last Change 52-Wk
S&P 500

1296.31

+2.39%

-10.79%

Oil (USO)

92.82

-3.75%

+72.59%

Gold (GLD)

84.28

-2.10%

+28.75%

Silver (SLV)

15.11

-5.97%

+19.98%

U.S. Dollar

75.80

+1.70%

-6.15%

Euro
1.50
-1.99%
+9.82%
VIX

20.22

-4.40%

-23.64%

HUI

334.13

-6.33%

-1.55%

10-Year Yield

3.95%

0.02

-0.69

Company Sym Industry

Stepan

SCL

cleaning products

Piedmont Natural Gas

PNY

utilities

Estee Lauder

EL

makeup

AAON

AAON

building materials

RPC

RES

oil services

Idenix Pharma

IDIX

biotech

DXP Enterprises

DXPE

industrial equip

Philadelphia Consol

PHLY

insurance

Longs Drug Stores

LDG

drug stores

Amgen

AMGN

biotech

Newpark Resources

NR

oil services

Cal-Maine Foods

CALM

eggs

Perot Systems

PER

IT

QUALCOMM

QCOM

telecom

Diamond Foods

DMND

nuts

Zep

ZEP

cleaning products

Genentech

DNA

biotech

Advertisement

Company Sym Industry

iShares Italy

EWI

ETF

China GrenTech

GRRF

telecom

Banco Bilbao

BBV

Spanish bank

iShares Germany

EWG

ETF

American Electric

AEP

utilities

Man Sang Holdings

MHJ

pearls

DPL

DPL

utilities

iShares Malaysia

EWM

ETF

Makita

MKTAY

tools

China Nepstar

NPD

drug stores

General Growth Prop

GGP

retail REIT

Edison International

EIX

utilities

iShares Japan

EWJ

ETF

Cresud

CRESY

agriculture

Cohen & Steers Util

UTF

ETF

iShares Spain

EWP

ETF

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